Investing remotely versus within driving distance

[David Ning]

Hi Bigger Pockets community! My husband (I'm using his BP account) and I are just starting out with real estate investing and have explored the option of purchasing out of state where prices are a bit cheaper than where we are (we're in the San Francisco Bay Area). We are also considering purchasing a few hours drive away (i.e. Fresno, CA). My husband is very handy so we may be able to save on property management fees if he were to need to do some handy work. What have you learned from investing remotely versus being closer by to your properties? Thanks a lot.

[Laura Alamery]

@David Ning I have been investing virtually since the '90s so I am a big believer of conducting real estate investing virtually. :) It works really well for both buy and hold and wholesaling.

I know several investors from the Bay area who invest in other markets. You can get more for your money, energy and time investing in rentals in the Midwest. I have an investor/student  from San Francisco, who is building a sizable rental portfolio in St Louis. Her net profit per door is $400+ a month.

My suggestions if you are looking to invest virtually with buy and hold:

• Preferably choose a market you are somehow familiar with or have boots on the ground there that can help you - real estate agent, friend or family member;
• Once you choose the area, take a trip to get familiar and get a feeling for what type of properties you will be investing in and have an agent show you around. Attend a local investors' meeting and network with local investors.
• During your trip to the area, interview possible property managers, real estate agents, title companies. There is a lot to be said by in person connections and vibes, instead of over the phone or Zoom.
• Invest in one area at the time. I am all for spreading across markets, but establish yourself in an area first and even more so in 2 or 3 zip codes max at a time. Focus is important.

There are other tips, but these ones are the important ones to get you started and thinking in the right direction. 

Good luck! :)