Long Distance Investing

Rental Property Investor · Mobile, AL · Member since 2019 · 47 posts · 13 votes

I’m living in Atlanta right now and don’t know if it’s the best place to buy a property right now (Especially my first). How are you guys determining what markets you invest in? What are you looking for specifically? I’m looking into investing out of state.

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

You should have deal opportunities all around you. Long-distance investing is best suited for experienced investors who have boots on the ground in the area so they know they can trust the decisions being made.

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Jingru Sui
Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
6y
Originally posted by @Lamontis Gardner:
I’m living in Atlanta right now and don’t know if it’s the best place to buy a property right now (Especially my first). How are you guys determining what markets you invest in? What are you looking for specifically? I’m looking into investing out of state.

Lots of people here are looking into Atlanta to purchase their investment house. I'm an investor/agent here in Atlanta. I think the market is defiantly getting more expensive but if you look close enough you can still find pretty good properties here that cash flow. Also you can manage it yourself at first to control the rental process and save some more money on management fee.
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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
You should have deal opportunities all around you. Long-distance investing is best suited for experienced investors who have boots on the ground in the area so they know they can trust the decisions being made.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
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Lamontis GardnerPro Member
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Rental Property Investor · Mobile, AL · Member since 2019 · 47 posts · 13 votes
6y
@Jingru Sui Thanks! What areas here would you say are best to invest in right now?
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Jingru Sui
Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
6y
Originally posted by @Lamontis Gardner:
@Jingru Sui Thanks! What areas here would you say are best to invest in right now?
I personally like Cobb County and Cherokee County.

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Lamontis GardnerPro Member
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Rental Property Investor · Mobile, AL · Member since 2019 · 47 posts · 13 votes
6y
@Jingru Sui ok I’m actually living in Cobb, thought about house hacking with a duplex or basement property, but just considering all options. I’m new to this, so I’m just trying to find the best strategy that fits for me.
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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Lamontis Gardner,
You may have heard about real estate in Northeast Pennsylvania (NEPA). The greater Scranton area, and the dozen or so smaller towns around it have a great investment and cash-flow potential. The market ranges from A to C- areas and is comprised of mostly single-family to four-plex properties.

Price points are much lower than on the east or west coasts, however, rents are proportionally much higher, leading to positive cash-flow. Example: in NYC, say in Queens, an average 2-family brick house in a C+ neighborhood will cost $800K to $1M. However, the rent for a 3-bedroom apartment is about $2.5K to $3,500. That’s about $7k/mo income total.

In and around Scranton, 2-family houses in a C+ area are in the $80--$100K range. Rents for a 3-bedroom apartment are $800--$900. That’s $1,600/mo+. The numbers speak for themselves. To make the same rate of return, the NYC property would have to generate $16k/month. Keep in mind, however, in our area it’s not an ‘appreciation’ play like in NYC or LA—it’s a cash-flow, income-producing play.
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Kiera Underwood
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
6y
@Lamontis Gardner I actually disagree with Jonathan Green. I have seen over 100 first time investors in just the last year come to my market from out of state because the price points in their home markets were not approachable. As long as you have a solid team to lean on that others have vetted and the numbers make sense, OOS is totally an option.
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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
6y
@Lamontis Gardner
It doesn’t matter if you are experienced or not OOS isn’t a bad idea. Biggest component is boots on the ground and a local team. I’ve heard Atlanta is a great market to start I before venturing out I’d research Atlanta market.
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Ramon Pena
Investor · Los Angeles CA, United States · Member since 2017 · 12 posts · 3 votes
6y
Hi @Marc Winter
When is comes to scranton, do you have management and contractors that you can recommend? That is usually the difficult part with out of state investing? Personally, I am all for out of state and creating a long term relationship. I invest in PA because of my team. In my opinion, if you have a property manager you can trust, your gold.

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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Ramon Pena, we are licensed Real Estate Brokers and run a management company in Scranton and surrounding towns. Check my profile for contact info.
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Jingru Sui
Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
6y
Originally posted by @Lamontis Gardner:
@Jingru Sui ok I’m actually living in Cobb, thought about house hacking with a duplex or basement property, but just considering all options. I’m new to this, so I’m just trying to find the best strategy that fits for me.
It all depend on your budget you know. Duplex is great if you can find the right one that number make sense. :)

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Lamontis GardnerPro Member
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Rental Property Investor · Mobile, AL · Member since 2019 · 47 posts · 13 votes
6y
@Kiera Underwood I agree with you! I've been looking into long distance investing and it seems to be very lucrative if you go about it the right way.
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Ramon Pena
Investor · Los Angeles CA, United States · Member since 2017 · 12 posts · 3 votes
6y
Thank you @Marc Winter
I really appreciate your guidance
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Doug Rutherford
Rental Property Investor · Boulder, CO · Member since 2015 · 3 posts · 2 votes
6y
@Lamontis Gardner
For a first time purchase I would recommend buying in an area where you are familiar with the market dynamics(I.e. not out of state). There is time enough for OOS expansion later. I bought my first condo in 1992 in my hometown (Boulder, CO) and countless times have driven by it in the normal course of the day. Several times it has served as motivation to buy more / take action. Since then I’ve continue to invest near home and out of state, but that first purchase brings back fond memories. There is value is seeing a property you own on a regular basis.
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Brian Bradley
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
6y
@Lamontis Gardner reas David Greene’s book.
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Hai Loc
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
6y
@Marc Winter
I drove past Scranton on my way to Philly a few years back and went around town.
Ratios look good for 2 families.. how long does it take to kick out a non payment tenant?
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Aleksey F.
Rental Property Investor · Forest Hills, NY · Member since 2015 · 26 posts · 10 votes
6y
@Hai Loc
Not long- my recent eviction in Scranton took 3-4 weeks. I assume it could be shorter or longer depending on all involved. In the end there should be no good argument against non-payment.
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Sheryl Sitman
Rental Property Investor · Philadelphia, PA · Member since 2015 · 479 posts · 362 votes
6y
@Lamontis Gardner there is no "best" place in the US to invest. There are countless opportunities, strategies and goals that people find and use in every market across the country. I do not know Atlanta but I know it attracts investors from around the world so I am betting there is a good reason and you already have an advantage of living there. If you are new to investing why not make it easy and start in your back yard? I can not think of any reason why the other markets mentioned would be better investments than Atlanta but i can give you a list of why it will be harder, scarier and riskier to do it remotely. I concentrate in the region I live in which is a hot market and when I find a combo of a good area + a trustworthy team i go out of state as well.
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Hai Loc
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
6y
Originally posted by @Aleksey F.:
@Hai Loc
Not long- my recent eviction in Scranton took 3-4 weeks. I assume it could be shorter or longer depending on all involved. In the end there should be no good argument against non-payment.

That's amazing. Is that space crowded with investors ?
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Huan Nguyen
Investor · New Zealand · Member since 2020 · 14 posts · 18 votes
6y
@Lamontis Gardner I think it was also mentioned above, but definitely read David Greene's book "Long Distance Real Estate Investing". I'm looking into long distance investing myself. Giving up the homefield advantage is a huge challenge but I like the idea of developing skills that allow one to invest in multiple markets.
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Lamontis GardnerPro Member
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Rental Property Investor · Mobile, AL · Member since 2019 · 47 posts · 13 votes
6y
@Sheryl Sitman thanks for your reply, that makes a lot of sense.
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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Hai Loc, PA L/T laws work fine: 45--60 days from posting to constable lockout.
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Caleb Fledderjohann
Real Estate Agent · Minster, OH · Member since 2019 · 35 posts · 19 votes
6y
@Lamontis Gardner I researched properties from North Carolina to Kansas, and Texas to Michigan. I ended up investing in northwest Ohio. With investing, numbers matter, markets matter, margins matter. However, if you're going to invest out of state or a good distance from where you live, the team you have matters most. You need people you trust. My realtor is also my property manager and I have built a relationship with a contractor in the area I invest in (about two hours from where I live).
I have some basic spreadsheets I use to analyze deals. It's in depth but simple enough to only take a couple minutes with basic information on a property. Let me know if you'd like any of the information or have any questions.
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
6y
@Lamontis Gardner invest at home man. There’s going to be 100 people on here telling you to invest in their market. 99 of them will be getting paid if you do. Start with househacking and go from there. Always better to stay local in my opinion.
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Anthony Saheed
Real Estate Agent · Dubai, UAE · Member since 2020 · 41 posts · 4 votes
6y
No long story, but I am certain, you won’t be making a must investing in rental properties in Dubai.. this market is always on the rise.
I am a realtor based in Dubai, I could show you some properties and give you Indept profit analysis
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