I live in Florida and potentially looking at small 8-15 unit apartments in the midwest, Texas, anywhere where the market makes more sense than inflated Florida prices. If working a full time job, how would I see these properties? Submit a contact and fly in to hire the inspection, meet property management companies etc on the same week? What is typically your process when buying out of state?
@John Bosse 8-15 units will not be worth the time and expense to travel that far. You should be able to find some deals like that close to home. especially smaller properties like that Florida is huge and full of opportunity. I have clients and friends doing deals there every day.
That being said if you really feel compelled to invest in smaller properties in a market like Texas the best thing is to find a local partner or sponsor to invest with and let them handle the details and day to day.
Otherwise you will have to travel for each deal to shop and whenever something goes wrong.
I agree with you @Greg Dickerson . There are good deals in Florida if you spend time building relationships with brokers who specialize in smaller properties. @John Bosse if you really want to buy out of state I suggest you find a partner who is on the ground to help or look at passive investments in the markets you prefer so you don't have to travel out there.
Thank you both, I’m also looking in South Georgia, a 5 hour drive for me, anything where I can drive seems so much easier for me.
- Look for properties online or through contacts or agents or whatever channel you use
- Request all the numbers and have someone local (ideally property manager) to walk through the property and give their impression of property condition, location, tenant base, rent upside, etc.
- If above look good and numbers can work, submit offer and get under contract.
- Order inspection, etc. as part of due diligence. I don't bother to travel if deal is small, but will travel if deal is sufficient large or have a serials of deals around similar time frame
- Close the deal if satisfied with due diligence
Key is get good local property manager (maybe through reference) who can be honest - they will manage the property once purchased.