Buying out of state property
Member since 2022 · 11 posts · 6 votes
Buying out of state property
Most Popular Reply
@Jayson Valdez a few thoughts:
1. Due diligence is YOUR responsibility, and you can't hand it off to others. If you want to be a successful RE investor, one of the first things you'll need to learn is how to personally walk a property and assess its existing & impending problems, current value, and potential value--this is a critical part of due diligence. Although your team members (agent, GC, inspector) can help you with this, at the end of the day, the due diligence buck stops with you, and if you wholly rely on others to do your due diligence, it will often come back to bite you.
2. Photos / videos are not sufficient. There are countless potential issues that will not be conveyed via photos/video, so it's essential to see the property in-person. For instance, old galvanized steel plumbing hidden under a flipper's brand new drywall. Water diversion failure points causing masonry degradation or rot. Settling issues. A neighbor with constantly barking dogs. The house is directly under the flight path of a nearby airport. A bad neighborhood with drug dealers around the corner. These are all things that either can't be fixed, or cost tens (or even hundreds) of thousands to fix, and they are not easily conveyed in photos or video.
3. RE investing is challenging, and it's 10x+ MORE challenging OOS. This has been described thoroughly in other forum threads, articles, podcasts, etc., etc.; so you'll want to study up. Even very experienced RE investors often fail when they attempt OOS investments. In general, OOS is not a good strategy for an inexperienced investor, and there are far better strategies for inexperienced investors to get their start (e.g.; house hacking).
4. "Turnkey" is often too good to be true. One of the most common ways inexperienced investors get into trouble is with OOS property, and "turnkey" properties. Often, "turnkey" properties are freshly rehabbed properties in D class neighborhoods where nobody wants to live, and no PM wants to manage. There are many stories on the forums of inexperienced investors buying a "turnkey" OOS property, only to discover that it's in a D neighborhood, they can't find tenants (or the tenants they do find are a nightmare), and the PM doesn't manage the property correctly--because the revenue isn't worth it for a PM to put in the serious amount of time and effort it takes to correctly manage a property in a D neighborhood. ...also, if a property were truly "turnkey" (i.e.; in great shape, in a B or A area with a top-tier tenant pool), the local pros would be all over it. If RE investing were as simple as buying a true turnkey property in an A area, handing it off to a PM, and sitting back as the rent checks roll in, everyone would be doing it! ...but, in reality, RE investing takes serious work, skill, creativity and perseverance...if a "turnkey" property seems too goo to be true, it probably is!
5. Be wary of OOS C areas, and never buy in an OOS D or lower area--no matter how good the cashflow looks on paper! This is another way inexperienced investors often get burned. Every few days, an inexperienced investor posts on the forums saying "I bought an OOS property and it's a trainwreck; the tenants didn't pay, then they trashed the property, and now my PM is ghosting me"...inevitably, it's a property in a C or lower neighborhood, and the investor got lured into buying it because the cashflow numbers looked great on paper. A property in a C or lower area takes a LOT of time, effort, and skill to manage properly--and no PM will put in all that effort unless you're paying them a fortune. Moreover, the catastrophes these types of properties produce aren't worth any amount of cashflow.
6. A good team is required, and a good team is hard to build. It's not possible to succeed in OOS investing without boots on the ground...but good help is rare, and it's expensive. As they say: "Cheap help ain't skilled, and skilled help ain't cheap". Moreover, the incentives of many potential team members are not aligned with your best interests. Every agent will always be happy to sell you a house, but they are DISincentivized to steer you away from problematic properties (assuming they even have the expertise to spot problems, which many do not). "Turnkey" property companies will be happy to tell you all the good news about potential cashflow, but it's not in their interest to inform you of the bad news (e.g.; low quality tenant pool, neighborhood problems, etc.). Obviously, there are GREAT agents, PMs, GCs, etc. out there who will act in your best interest--even when they're disincentivized to do so--but these pros are few and far between (and their time/experience is valuable!). Since having a good team is critical for OOS investing, it's worth studying up on how to find, screen, build, and incentivize an effective team.
Don't get me wrong: it is possible to succeed in OOS investing (and even OOS turnkey investing); obviously, people have done it. However, it's way more challenging than other investing strategies (like house hacking in your local area), and it comes with unique issues and risks to navigate.
Hopefully that's useful info.
Good luck out there!
33 Replies
- 3yDevin JamesPro MemberDeveloper · Orlando, FL · Member since 2018 · 502 posts · 306 votes
Hey Jayson,
I think most people will agree that it's best to see the property before purchasing, especially your first rental property. I suggest buying a plane ticket & spending some time in the area. A plane ticket is well worth the expense for this type of purchase.
If that isn't possible then i'd pay a local investor and/or contractor to walk the property for you while you facetime them.
Good luck!!
- Member since 2022 · 11 posts · 6 votes3y
Never thought about that getting help from local investors.
Yes, that will be the best bet then, to go out there.
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes3y
Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
Hey Jayson, welcome to the BP community! If visiting the property personally is not an option for you, it is best to get in touch with a local real estate agent, PM, and Contractor to get you covered on most of your needs when investing out of state. You need to talk to the right people to ensure that the correct information about the property you're buying will be provided.
Keep in mind that the risks will always be there but you'd be able to lessen it. The key is to make sure that you have proper systems in place.
Your agent helps you find deals, they are your eyes and ears and will surely provide you things that you need to fully be informed about what you're getting yourself into.
You can learn more from David Greene's "The Core 4 Members Vital to a Profitable Long-Distance Real Estate Investing Team" from this link here: https://www.biggerpockets.com/... Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
I know about 100 or so investors from CA and out of the country that have never been to the city where they buy nor seen the house. Its all about your team. Must have one that has a mutual benefit,
All the best
Quote from @Jayson Valdez:
Never thought about that getting help from local investors.
Yes, that will be the best bet then, to go out there.
Sounds like a good idea, HOWEVER good luck finding someone that is going to walk a property you may or may not buy, not likely. Also since you do not have any expertise there how do you know what to pay or where to buy ? Again, you need a team in place .
Hi Jayson, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.
- Member since 2022 · 11 posts · 6 votes3y
Quote from @Bob S.:
Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
I know about 100 or so investors from CA and out of the country that have never been to the city where they buy nor seen the house. Its all about your team. Must have one that has a mutual benefit,
All the best
Yes, that is where I got the idea of not seeing the property. A co worker of mine has property rentals out of state. He told me 2 of his properties, he has never seen them. I have been asking him alot of questions. I came her also to get the insight of the pros. My co worker and I are in grocery retail but he is experienced with real estate. Hopefully I can work with his team or work with someone out there where I choose to buy. Btw I am from California
- Abundant opportunities where? I have locked up two 4 units in the last 2 weeks other than that I do not see any. I starter the rehab on a 10 unit off Kinsman, but other than that not much I have a large network and get 20 deals a week sent to me, most are garbage. Small MF I do not see any If so, I would buy them, if they make sense. I only do deals where my net cap is 15% net or better.
Quote from @Aj Parikh:
Hi Jayson, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.
- 3yScott AllenBusiness MemberReal Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
@Jayson Valdez It is very common to buy an investment property and never actually look at it in person. You do still want to do your due diligence and make sure you have and inspection though and if possible make sure there are video walk throughs of the units so that you can see the condition a little bit more. If you're buying something that you're planning to flip from out of state, you'll want at least 1-3 contractors that can give you a bid on how much work it will need. You'll also want to make sure you have a property manager in mind for where you're planning to buy.
- Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes3y
@Jayson Valdez Do you have any team that you have vetted and qualified to be able to help you with this purchase? AN agent or a family member out in that area could really help!
- Member since 2022 · 11 posts · 6 votes3yNo team at the moment. Yes, my first research was trying to look in areas I know people live in.
Quote from @Nicholas Coulter:
@Jayson Valdez Do you have any team that you have vetted and qualified to be able to help you with this purchase? AN agent or a family member out in that area could really help!
- Member since 2022 · 11 posts · 6 votes3y
Quote from @Scott Allen:
@Jayson Valdez It is very common to buy an investment property and never actually look at it in person. You do still want to do your due diligence and make sure you have and inspection though and if possible make sure there are video walk throughs of the units so that you can see the condition a little bit more. If you're buying something that you're planning to flip from out of state, you'll want at least 1-3 contractors that can give you a bid on how much work it will need. You'll also want to make sure you have a property manager in mind for where you're planning to buy.
Yes I am doing my due diligence. Researching rent in the area, neighborhood grades, property management, landlord laws as well as finding a savy agent of the areas I am looking at.
- Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes3y
Hey @Jayson Valdez - it depends on you.
Are you comfortable with pulling the trigger on a property after a virtual walkthrough, I'm assuming you did one with your agent (maybe on FaceTime)? If so, then go for it. I've bought property without physically seeing it (except on the closing day I drove there), and haven't had any issues.
If you trust your agent, and they have a track record of positive experiences - it would make me less hesitant since it's unlikely they'll want to sell me on a deal that would tarnish their reputation.
Here is what I would do if I was to invest out of state. First get in touch with lenders and get preapproved. While doing that go on google and get in touch with some property management companies in the areas you are looking with good reviews. You can find them on here as well. I would ask them which areas are worth investing in and what strategies and types of tenants will I get in those areas. They dont want a tire kicker but if you are brief and concise you might get some good information. After asking a few of them I would compile a list of properties in those neighborhoods. I would highly recommend going as turnkey as possible as heavy reno work from afar though possible really throws in a lot of variables that can go wrong. BRRR sounds great but what people don't tell you on here are all the nightmares of when they go wrong. I would atleast gain momentum with a tunrkey 1 first before doing a BRRR. Maybe the second or third time you will have established a good pm who also might be a contractor or know good ones and a BRRR will be better.
After narrowing down neighborhood and good PMs will tell you to avoid D grade stuff and some will say C grade as well narrow down your neighborhoods. Then call reputable agents with preapproval letters which will be a reason more agents will work with you, so they can start walking houses with you remotely. At this point I would start making offers. Once accepted I would fly out and walk the neighborhood personally. I would do it not just at 2 PM but at 11 PM on a weekend and weekday. If the area is unsafe which should have been voided during the previous process you can just walk from the contract. Think of the plane ticket as a chance to see a new place at the same time.
Before doing any of this I would look into area landlord tenant laws of the area. Some are very tenant friendly and hence profitability at even C grade asset quality can be tough to obtain.
Don't trust anyone too much, eliminate as much risk as possible, budget accordingly, and don't be cheap with your team and you can do alright.
- Real Estate Agent · Dallas-Fort Worth, TX · Member since 2021 · 117 posts · 69 votes3y
@Jayson Valdez I lived in San Diego my whole life till 5 years ago when we migrated to Texas primarily to invest in this market. You've had some great responses... I' would say be very careful when you see "Turn-Key" Investment. You have to do your due diligence...or you might be turning the key into a mess.
Get a team (Realtor/Property Manager you trust in the area you wish to invest. Meet with them, interview them, consider flying out and meeting with them. Find out their scope and scale / vendor list/ etc. You have to rely on a team when out of state investing, but you have to make sure that they know what they're doing and that it's the right fit for you.
Best of luck. Happy Investing!
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
I know about 100 or so investors from CA and out of the country that have never been to the city where they buy nor seen the house. Its all about your team. Must have one that has a mutual benefit,
All the best
Yes, that is where I got the idea of not seeing the property. A co worker of mine has property rentals out of state. He told me 2 of his properties, he has never seen them. I have been asking him alot of questions. I came her also to get the insight of the pros. My co worker and I are in grocery retail but he is experienced with real estate. Hopefully I can work with his team or work with someone out there where I choose to buy. Btw I am from California
you are overthinking it. Just connect with a team that provides properties, thats all you have to do
Good Luck
- Member since 2022 · 11 posts · 6 votes3y
Quote from @Marc Stevenson:
@Jayson Valdez I lived in San Diego my whole life till 5 years ago when we migrated to Texas primarily to invest in this market. You've had some great responses... I' would say be very careful when you see "Turn Key" Investment. You have to do your due diligence...or you might be turning the key into a mess.
Get a team (Realtor/Property Manager you trust in the area you wish to invest. Meet with them, interview them, consider flying out and meeting with them. Find out their scope and scale / vendor list/ etc. You have to rely on a team when out of state investing but you have to do your due diligence and make sure it's the right fit for you.
Best of luck. Happy Investing
thanks for the info. Yes San Diego is great but paying for this "Sun" is sometimes not worth it. I have a few friends and coworkers that moved to Texas or planning to move there.
I have been looking in El Paso, TX for I have a friend in the military (Fort Bliss). In hopes he can guide me with that area on rent and neighborhood ratings. Mostly single family homes though and not Multis, which I would like.
Yes, depending on what area I choose, I will find a savy agent from the area and in hopes they are investors too.
Before all this I will get preapproved first. I have someone that I been using for my approvals
- Member since 2022 · 11 posts · 6 votes3y
Quote from @Bob S.:
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
I know about 100 or so investors from CA and out of the country that have never been to the city where they buy nor seen the house. Its all about your team. Must have one that has a mutual benefit,
All the best
Yes, that is where I got the idea of not seeing the property. A co worker of mine has property rentals out of state. He told me 2 of his properties, he has never seen them. I have been asking him alot of questions. I came her also to get the insight of the pros. My co worker and I are in grocery retail but he is experienced with real estate. Hopefully I can work with his team or work with someone out there where I choose to buy. Btw I am from California
you are overthinking it. Just connect with a team that provides properties, thats all you have to do
Good Luck
Thanks for the reply.. this is the answer I need. I remember when I bought my first local property at 21. Many people said to me as a youngin You will need this, do this, etc. Scared the crap out me. I didn't want to buy a property. And all I did was call a high review realtor agency and walked me thru everything. Told me what money to give and waited.
@Jayson Valdez a few thoughts:
1. Due diligence is YOUR responsibility, and you can't hand it off to others. If you want to be a successful RE investor, one of the first things you'll need to learn is how to personally walk a property and assess its existing & impending problems, current value, and potential value--this is a critical part of due diligence. Although your team members (agent, GC, inspector) can help you with this, at the end of the day, the due diligence buck stops with you, and if you wholly rely on others to do your due diligence, it will often come back to bite you.
2. Photos / videos are not sufficient. There are countless potential issues that will not be conveyed via photos/video, so it's essential to see the property in-person. For instance, old galvanized steel plumbing hidden under a flipper's brand new drywall. Water diversion failure points causing masonry degradation or rot. Settling issues. A neighbor with constantly barking dogs. The house is directly under the flight path of a nearby airport. A bad neighborhood with drug dealers around the corner. These are all things that either can't be fixed, or cost tens (or even hundreds) of thousands to fix, and they are not easily conveyed in photos or video.
3. RE investing is challenging, and it's 10x+ MORE challenging OOS. This has been described thoroughly in other forum threads, articles, podcasts, etc., etc.; so you'll want to study up. Even very experienced RE investors often fail when they attempt OOS investments. In general, OOS is not a good strategy for an inexperienced investor, and there are far better strategies for inexperienced investors to get their start (e.g.; house hacking).
4. "Turnkey" is often too good to be true. One of the most common ways inexperienced investors get into trouble is with OOS property, and "turnkey" properties. Often, "turnkey" properties are freshly rehabbed properties in D class neighborhoods where nobody wants to live, and no PM wants to manage. There are many stories on the forums of inexperienced investors buying a "turnkey" OOS property, only to discover that it's in a D neighborhood, they can't find tenants (or the tenants they do find are a nightmare), and the PM doesn't manage the property correctly--because the revenue isn't worth it for a PM to put in the serious amount of time and effort it takes to correctly manage a property in a D neighborhood. ...also, if a property were truly "turnkey" (i.e.; in great shape, in a B or A area with a top-tier tenant pool), the local pros would be all over it. If RE investing were as simple as buying a true turnkey property in an A area, handing it off to a PM, and sitting back as the rent checks roll in, everyone would be doing it! ...but, in reality, RE investing takes serious work, skill, creativity and perseverance...if a "turnkey" property seems too goo to be true, it probably is!
5. Be wary of OOS C areas, and never buy in an OOS D or lower area--no matter how good the cashflow looks on paper! This is another way inexperienced investors often get burned. Every few days, an inexperienced investor posts on the forums saying "I bought an OOS property and it's a trainwreck; the tenants didn't pay, then they trashed the property, and now my PM is ghosting me"...inevitably, it's a property in a C or lower neighborhood, and the investor got lured into buying it because the cashflow numbers looked great on paper. A property in a C or lower area takes a LOT of time, effort, and skill to manage properly--and no PM will put in all that effort unless you're paying them a fortune. Moreover, the catastrophes these types of properties produce aren't worth any amount of cashflow.
6. A good team is required, and a good team is hard to build. It's not possible to succeed in OOS investing without boots on the ground...but good help is rare, and it's expensive. As they say: "Cheap help ain't skilled, and skilled help ain't cheap". Moreover, the incentives of many potential team members are not aligned with your best interests. Every agent will always be happy to sell you a house, but they are DISincentivized to steer you away from problematic properties (assuming they even have the expertise to spot problems, which many do not). "Turnkey" property companies will be happy to tell you all the good news about potential cashflow, but it's not in their interest to inform you of the bad news (e.g.; low quality tenant pool, neighborhood problems, etc.). Obviously, there are GREAT agents, PMs, GCs, etc. out there who will act in your best interest--even when they're disincentivized to do so--but these pros are few and far between (and their time/experience is valuable!). Since having a good team is critical for OOS investing, it's worth studying up on how to find, screen, build, and incentivize an effective team.
Don't get me wrong: it is possible to succeed in OOS investing (and even OOS turnkey investing); obviously, people have done it. However, it's way more challenging than other investing strategies (like house hacking in your local area), and it comes with unique issues and risks to navigate.
Hopefully that's useful info.
Good luck out there!
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
I know about 100 or so investors from CA and out of the country that have never been to the city where they buy nor seen the house. Its all about your team. Must have one that has a mutual benefit,
All the best
Yes, that is where I got the idea of not seeing the property. A co worker of mine has property rentals out of state. He told me 2 of his properties, he has never seen them. I have been asking him alot of questions. I came her also to get the insight of the pros. My co worker and I are in grocery retail but he is experienced with real estate. Hopefully I can work with his team or work with someone out there where I choose to buy. Btw I am from California
you are overthinking it. Just connect with a team that provides properties, thats all you have to do
Good Luck
Thanks for the reply.. this is the answer I need. I remember when I bought my first local property at 21. Many people said to me as a youngin You will need this, do this, etc. Scared the crap out me. I didn't want to buy a property. And all I did was call a high review realtor agency and walked me thru everything. Told me what money to give and waited.
Its not rocket science, though some will make it seem that way. Buy right, fix right, rent right and have the right team around you. Again, I know many that have never been the city where their property is let alone seen the house in person. TEAM is the key word with a mutual benefit long term relationship. I have seen investors pay all in 55k, collect about 15 -20% a year net, on top of the nearly double appreciation. Some with even better numbers. Heck I just paid all in 60k rent will be about 1350, value is about 125k, not too shabby. Buying a 10 unit all in about 350k, value about 460k, rents will be about 58k, on gross of about 90k.Its all about team and knowledge
Good luck
- Member since 2022 · 11 posts · 6 votes3yWow, those seem like great numbers! Hope to have that experience someday.
Quote from @Bob S.:
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
I know about 100 or so investors from CA and out of the country that have never been to the city where they buy nor seen the house. Its all about your team. Must have one that has a mutual benefit,
All the best
Yes, that is where I got the idea of not seeing the property. A co worker of mine has property rentals out of state. He told me 2 of his properties, he has never seen them. I have been asking him alot of questions. I came her also to get the insight of the pros. My co worker and I are in grocery retail but he is experienced with real estate. Hopefully I can work with his team or work with someone out there where I choose to buy. Btw I am from California
you are overthinking it. Just connect with a team that provides properties, thats all you have to do
Good Luck
Thanks for the reply.. this is the answer I need. I remember when I bought my first local property at 21. Many people said to me as a youngin You will need this, do this, etc. Scared the crap out me. I didn't want to buy a property. And all I did was call a high review realtor agency and walked me thru everything. Told me what money to give and waited.
Its not rocket science, though some will make it seem that way. Buy right, fix right, rent right and have the right team around you. Again, I know many that have never been the city where their property is let alone seen the house in person. TEAM is the key word with a mutual benefit long term relationship. I have seen investors pay all in 55k, collect about 15 -20% a year net, on top of the nearly double appreciation. Some with even better numbers. Heck I just paid all in 60k rent will be about 1350, value is about 125k, not too shabby. Buying a 10 unit all in about 350k, value about 460k, rents will be about 58k, on gross of about 90k.Its all about team and knowledge
Good luck
Yes, knowledge!! I've been reading, listening, watching everything on property investing especially out of state. Heck thats why I joined Biggerpockets. I kept seeing it in Brandon Turner's books. I thought this place was going to be a crappy social media group but it looks like theres alot of seasoned pros in here.
Thank you very much everyone for your responses and time to a rookie. Quote from @Jayson Valdez:
Wow, those seem like great numbers! Hope to have that experience someday.Quote from @Bob S.:
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Quote from @Bob S.:
Quote from @Jayson Valdez:
Hi everyone,
New member here. Is it wise to buy a property without actually seeing the property in person. I would like to buy a turnkey duplex but it's in another state as my first rental property.
I know about 100 or so investors from CA and out of the country that have never been to the city where they buy nor seen the house. Its all about your team. Must have one that has a mutual benefit,
All the best
Yes, that is where I got the idea of not seeing the property. A co worker of mine has property rentals out of state. He told me 2 of his properties, he has never seen them. I have been asking him alot of questions. I came her also to get the insight of the pros. My co worker and I are in grocery retail but he is experienced with real estate. Hopefully I can work with his team or work with someone out there where I choose to buy. Btw I am from California
you are overthinking it. Just connect with a team that provides properties, thats all you have to do
Good Luck
Thanks for the reply.. this is the answer I need. I remember when I bought my first local property at 21. Many people said to me as a youngin You will need this, do this, etc. Scared the crap out me. I didn't want to buy a property. And all I did was call a high review realtor agency and walked me thru everything. Told me what money to give and waited.
Its not rocket science, though some will make it seem that way. Buy right, fix right, rent right and have the right team around you. Again, I know many that have never been the city where their property is let alone seen the house in person. TEAM is the key word with a mutual benefit long term relationship. I have seen investors pay all in 55k, collect about 15 -20% a year net, on top of the nearly double appreciation. Some with even better numbers. Heck I just paid all in 60k rent will be about 1350, value is about 125k, not too shabby. Buying a 10 unit all in about 350k, value about 460k, rents will be about 58k, on gross of about 90k.Its all about team and knowledge
Good luck
Yes, knowledge!! I've been reading, listening, watching everything on property investing especially out of state. Heck thats why I joined Biggerpockets. I kept seeing it in Brandon Turner's books. I thought this place was going to be a crappy social media group but it looks like theres alot of seasoned pros in here.
Thank you very much everyone for your responses and time to a rookie.Without a doubt the best social media site I have seen
- Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes3y
I live in San Diego and have about 200 front doors in Painesville, Mentor, and Akron.
Feel free to reach out to me. I love talking shop!!
Swanny BP Podcast 238 Guest - Rental Property Investor · Nampa, ID · Member since 2021 · 19 posts · 16 votes3y
I have purchased 4 duplexes in Cleveland Ohio over the last 3 years and have never stepped foot in the state of Ohio. I have a trusted realtor who FaceTimes me as he walks through the property. He is also a successful investor in the area so he knows the areas to focus on and also what to look for in the buildings I’m considering buying. I have a trusted inspector I have inspect all of my potential purchases. Once I own the buildings I have a trusted handyman to handle any maintenance issues. And I self manage all of them through www.apartments.com. To sum up the above you need a trusted team in the area you are looking to invest in and it’s very doable. If you are looking at totally turnkey through a turnkey company, theoretically that turnkey company will become your team and manage the building once purchased which makes finding a team easier.
Quote from @Joshua Perelli:
I have purchased 4 duplexes in Cleveland Ohio over the last 3 years and have never stepped foot in the state of Ohio. I have a trusted realtor who FaceTimes me as he walks through the property. He is also a successful investor in the area so he knows the areas to focus on and also what to look for in the buildings I’m considering buying. I have a trusted inspector I have inspect all of my potential purchases. Once I own the buildings I have a trusted handyman to handle any maintenance issues. And I self manage all of them through www.apartments.com. To sum up the above you need a trusted team in the area you are looking to invest in and it’s very doable. If you are looking at totally turnkey through a turnkey company, theoretically that turnkey company will become your team and manage the building once purchased which makes finding a team easier.
Be careful, I have read horror stores here on BP. Props staying vacant for 5, 6 7 months, owners do not know how to evict, do lead inspections, close the POS, getting ripped off from contactors, ex. paying 3k to replace a gas furnace, 2k for HW tanks, 5k to paint the house and worse. Paying retail for properties when they can get them much less.
Continued success
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