Long Distance /Out of State investing

[Jingmin Ye]

Hello, I live in New York City and have been reading/learning about long distance and out of state investing. Currently no portfolio except for my primary residence.

In the past two months, I have been building the foundation of learning; I have read David Greene’s Long Distance Investing, and Brandon Turner’s Rental Property Investment. Now I would love to connect and learn about YOUR experience as fellow real estate enthusiasts who happen to live in high cost areas, choose the route of out of state investing (especially the buy-and-hold strategy). I have some specific questions, but any insights would be greatly appreciated.

1- Location: how do you determine the location(s) that you decided to invest in? Especially in the abundance of population, employment and price-to-rent data, how do you zoom in on the location(s) (other than through family or friends) that are the right combination of appreciation and cash flow?

2- Turnkey provider vs. do-it-yourself: did you start your journey with a turnkey provider OR did you start by choosing a location that is driving distance+locate deals+rehab+hire a PM to manage the day to day, and would you have done it differently?

3- What are the questions that you use to screen/align with the turnkey providers that they are the right partners?

Also if you happen to be in New York City, I would love to meet in person, buy you a coffee and listen to your stories.

Thank you!

J

[Melanie Johnston]

@Jingmin Ye

You are asking some good questions. In working with dozens of out-of-state BiggerPockets investors who have bought long-term and short-term rentals in my area (Metro Phoenix), they tend to research the economic health and forecasts of a particular market so they can benefit from long-term growth and protect themselves from a declining market. Headlines like these suggest Metro Phoenix is a good market to consider:

Phoenix metro economy among most resilient nationwide amid pandemic, report says (Maricopa County) Fastest Growing County in the U.S.

A great resource on our economy is the Maricopa Association of Governments. Here's a link to their maps and data section: https://azmag.gov/Programs/Map... which offers detailed analysis of all facets of our economy, including future projections.

As far as an investor being familiar with or close to an area, I've worked with several BiggerPockets investors who've never visited Phoenix before they buy. We meet through this forum, have a deep dive call on their goals, and then work together to get them comfortable with the areas that best fit their agenda. You can likely find an investor-focused agent on this forum in whatever market you pursue. It's all about trust, responsiveness and transparency.

You can certainly connect with a PM if you don't want to deal with "tenants and toilets." But managing your own rental from a distance is not as difficult as it seems. You just need boots on the ground in the form of a reliable handyman. Listing your rental on the Multiple Listing Service through the agent who helped you buy your property can be very cost-effective for you.

You are getting good advice from your fellow BP investors on this thread. I'm sure more good information will follow!

Happy to help if your investing path leads you to Metro Phoenix.

Melanie