Investing out of state

[David Hare]

I am thinking of purchasing multi family units that are out of state from where I live. If I plan to use a management company and check out the property initially, would there be any major drawbacks to doing this versus purchasing in the same state where I live? Especially if I find a great deal?

[Marco Santarelli]

Originally posted by David Hare:

I am thinking of purchasing multi family units that are out of state from where I live. If I plan to use a management company and check out the property initially, would there be any major drawbacks to doing this versus purchasing in the same state where I live? Especially if I find a great deal?

Hi David,

A few points for you to consider:

1. You should always use a professional property management company with your out of state properties.
2. It's always a good idea to "check out the properties" assuming you're talking about physically going there to visit. If that's not possible with your schedule, be sure to conduct a thorough due diligence and use a property inspector as a bare minimum.
3. If you find a "great deal" near where you live, then check that out first if it makes you feel more comfortable. If you live in a market that doesn't make sense financially, then you may have to look at other markets where you can invest prudently and get a good rate of return for your capital. (This is very common with investors from the coastal "bubble" markets.)
4. And remember, Real Estate Is a Business!

Post any other questions you have in the forums. Happy to help!

Continued success!