Best way to find out of state deals? & other questions

[Dan Veneski]

Hey guys, I just listened to a few of the pod casts today and it really drove home that there are indeed 20-35,000$ properties out there that can generate great cash flow! These deals definitely can't be found where i live so i would have to invest out of state. I have a few questions to run by you all.

1. What's the best way to start your out of state search for these properties? Google? 

2. Once you decide to start looking more into an area/city, do you immediately contact brokers? Checking unemployment rates? Look for colleges/hospitals in the area?

3. And finally, I assume you all use hot pads and craigs list to see what rentals are going for?

If there are a lot of rentals for rent, does that mean there's a big rental market or does that usually mean stuff is sitting vacant?

Thanks for the newbie answers.

Dan

[Mehran K.]

Hey @Dan Veneski , I'd start by narrowing my search down to a few markets that have properties that meet those criteria you have. You could look into the macro-economic factors such as employment, population, income, main industries, etc. After reviewing those things, and the market still piques your interest, you can network with other investors here on the site that actually invest there. 

Craigslist, rentometer, and local property management companies/investors are great for getting a good idea of what the market rents are. Units go vacant constantly as people are always moving etc. How long they stay vacant is important as well! Ask those same local investors and property managers what their vacancy rates are, and have been. You can also ask what property types seem to have the most rental demand, and in what neighborhoods.

Hope that helps!