I live in California and I purchased rental property in Las Vegas Nevada. I purchased the property based on pictures online and a great property inspection report along with a decent report with my realtor. I'm considering purchasing another rental property in Memphis Tennessee in the next few months. For those who invest in real estate out of their own state, do you always go and view property before making a offer?
Investor 路 Palm Beach County, FL 路 Member since 2019 路 370 posts 路 330 votes
5y
A home inspection is going to give you all you need to know about the property. Inspectors are professionally trained and are able to see issues that we would normally over-look. Of course you can travel to your properties but I would include that in your closing costs as part of your sue diligence. Hey if your still getting a good coc return with travel expenses included then go for it!
Real Estate Broker 路 Salt Lake City & Oklahoma City 路 Member since 2018 路 3k+ posts 路 2k+ votes
5y
Hi @Ruben Cuevas, you absolutely CAN but I would default to you own goals. For example, if your goal is to buy 10 properties a year for the next 5 years, then it would be prudent for you to build a system that allows you to NOT travel to other cities 50x in the next half decade to see properties, but rather spend that time doubling down in Cali while your team does the grunt work.
However, if you WANT to scale slowly and methodically and it is important for you to be manually involved in each one, then go for it! Just make sure that you consult your future self and ensure that future Ruben is pleased with the decisions you make along the way :)
Hi @Ruben Cuevas, you absolutely CAN but I would default to you own goals. For example, if your goal is to buy 10 properties a year for the next 5 years, then it would be prudent for you to build a system that allows you to NOT travel to other cities 50x in the next half decade to see properties, but rather spend that time doubling down in Cali while your team does the grunt work.
However, if you WANT to scale slowly and methodically and it is important for you to be manually involved in each one, then go for it! Just make sure that you consult your future self and ensure that future Ruben is pleased with the decisions you make along the way :)
Very valid point here. I think once you are comfortable with your team and the process of OOS investing, there will be no need to. The last 3 properties I've purchased were out of state (in Memphis to be exact) and I haven't seen them in person yet. It's really about developing the right team and establishing certain checks and balances in place to provide you a level of trust and comfort so you don't have to physically travel to your property.
I did NOT think this way for a long time and still struggle to fully embrace it, then a client that I was helping buy a 5th and 6th rental property in my market (and HIS market) told me that he had not yet been in the first four. I was dumbfounded by it and his response was "dude, why would I need to? That's what I have you for."
Point taken. Thanks for shaking me into a more efficient way of thinking, client!
Investor 路 Palm Beach County, FL 路 Member since 2019 路 370 posts 路 330 votes
5y
A home inspection is going to give you all you need to know about the property. Inspectors are professionally trained and are able to see issues that we would normally over-look. Of course you can travel to your properties but I would include that in your closing costs as part of your sue diligence. Hey if your still getting a good coc return with travel expenses included then go for it!
Rental Property Investor 路 Centreville, VA 路 Member since 2019 路 1k+ posts 路 799 votes
5y
I recently closed on out of state properties in Cleveland and Memphis and I made it a point that I don't want to visit mainly because going once a year has no point. I invest my time in trying to manage the property management and making sure that they are on top of the repairs, rent collection or any utility bill payment. Let me know if you want to connect and talk about Roofstock. I used them to purchase in Memphis.
Investor 路 Dallas, GA 路 Member since 2016 路 59 posts 路 57 votes
5y
@Ruben Cuevas - I did fly out to meet the teams I was potentially going to work with. That鈥檚 really where you kick the tires before putting money down. I would absolutely recommend spending the $1k to meet them prior to plunking down $35k-$45k on a down payment/closing costs. Once comfortable with the team, I never felt the need to see the properties. I already knew what I was basically getting.