Is it a good idea to buy property in another state?

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Is it a good idea to buy property in another state?

Shanna Cox
Brownsville, TX · Member since 2015 · 3 posts · 1 vote
I decided to look around at adjoining states to see if there were properties for sale within my price range. I have found some good looking properties and will run the numbers but before that I am curious if it even makes sense to consider buying property out of state. Example, live in New York , buy in Connecticut or live Texas and buy in Colorado. Pros and Cons?
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Tyler Kastelberg
Real Estate Technology · San Francisco, CA · Member since 2016 · 262 posts · 265 votes
8y

@Shanna Cox, great question.

Investing out-of-state is a great option if:

1) you have expertise in the area you are investing, or

2) you are investing with a trusted person who has expertise

The Texas market has great value -- a number of people are expecting a rise in Houston values over the next few years. Perhaps look there?

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  • Tyler Kastelberg
    Real Estate Technology · San Francisco, CA · Member since 2016 · 262 posts · 265 votes
    8y

    @Shanna Cox, great question.

    Investing out-of-state is a great option if:

    1) you have expertise in the area you are investing, or

    2) you are investing with a trusted person who has expertise

    The Texas market has great value -- a number of people are expecting a rise in Houston values over the next few years. Perhaps look there?

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    BiggerPockets has a fairly new book, "Long Distance Real Estate Investing" by @David Greene that addresses this very issue in depth and explains how to do it. I highly recommend it. 

    The DIY Landlord Book4.7248 Reviews
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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    8y

    @Shanna Cox

    I think the answer to your question depends on your investing criteria. What are you looking for in an investment and can that be found in the state that you live in?

    Is your criteria being able to find a cash-flowing properties?
    Is your criteria to invest in a city that is expected to achieve double digit population increases?
    Are you bulling on a certain sector(Technology, Marijuana) and you want to invest in cities that have a high concentration of those jobs? 

    If these are any of your criterias and you can't find it in your state - then you probably need to look outside of your state.

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  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y

    There are a lot of threads that debate this. Some people will scream saying investing out-of-state is a horrible idea, and some people do it all the time and are fine with it. I live in California and my closest properties are in GA. It can certainly be done, and with any investing strategy, you just need to learn the ins and outs and risks (and their mitigations) in order for it to work. 

    A couple articles that might help-

    https://www.biggerpockets.com/renewsblog/2015/11/1...

    https://www.biggerpockets.com/renewsblog/2012/12/2...

    Hope those help get you started!

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