1. What would you do to better learn the area, the rental market, the stability of the area, etc...to assess if buying property here a good idea...they are 7.5 hours away so want to do as much due diligence as I can before driving to see the homes and the area.
2. Also, I have never worked with a property management company, so what questions would you ask them???
Thank you so much for your help! I wish these were local but don't want to miss an opportunity even if 7 hours away! My local market not so good for finding good buy and holds right now...
Have a great day!!
The easiest thing you can do is to call up a real estate agent in that area and present them who you are and your plans and would like to know what local developments is going on in that area.
I would also start googling the local papers in that area to see what they are saying, is new school being built, is there a notable migration of people into or out of the area.
The internet has such amazing amounts of information that you can utilize to come up with a conclusion. The website www.City-data.com has forums that people go on to talk about their towns, the good and bad that is going in that area.
You can also take a 1-2 day excursion to that town to peruse and see for your own eyes what is happening in that area.
For vetting Property Managers, there are myriads of member blogs here on BP that give you pointers on what specific questions to ask them, just search for those blogs.
Hopes, this helps.
@Kelly Kormos I’ll just roll out and say “bad idea”. I think the majority of out-of-state investors do so because their market doesn’t work. San Diego, San Francisco, Manhattan, etc. Those markets have either affordability issues as well as cash-flow issues. I know Nashville has gone bananas (in a good way) but odds are you know the desirability of suburbs, areas, etc. 1000% better than me or this area that you are looking at 7 hours away. Personally, it would have to be a CRAZY good deal for me to think: deal quality > area quality. I’m always a believer in finding a market to believe in and then looking for a solid deal on that market.
Or buy them :) What do I know 🤷🏻♂️
@Kelly Kormos Sounds a great opportunity to wholesale them. Don't buy what you don't know or understand. It's going to be virtually impossible for you to have enough time to find a property manager that you like and learn the area. However, you can assess the value of it fairly quickly. I would wholesale them
Nothing beats putting your personal eyes on the properties and the local market. For some diligence I would recommend also connecting with fellow BP'ers that are local there and seeing what they say about the market in that town.
@Tom Shepard great idea! Thank you!
@Devan Mcclish I will consider this. thank you!
@Andrew Johnson Nashville has gone crazy in a good way for sellers but the market to find good rental properties is pushing many out- out of middle tn and of the state even. I normally would have never considered this area but when someone you know is selling and just wants to get rid of them bc she doesn't handle them and her husband passed, then I want to at least make sure I am doing my due diligence and not missing a good opportunity. I do agree that it will have to be crazy good and some signs are pointing to that esp if I could possibly do owner financing. Just making sure I am reviewing all options before shutting it down or pulling the trigger.
@Brian Adzadi I am going to be calling some agents! I will do some more googling and see what I can pull up from the local publications! great idea. I have looked at city-data but did not peruse the forums. I will do that as well. If we like what we see from this fact finding then we will be going to visit! I am actually most concerned about the PM portion. From a conversation i had with someone there recently, does not sound like there are any PM management companies there. They have PM companies but they say they only manage their own properties. Looking into this some more too.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.