Property ownership 100% remote. Doable?

Question

Looking to get started in purchasing rentals for cash flow— trying to decide on the market. There is one semi-decent area locally but the properties are pricey (DC/Virginia area). I see that some of the best cash flow generators are located in the Midwest. Has anyone ever purchased, rehabbed (if needed), and rented 100% remote? Obviously need a good team. Wondering if it’s viable.

Thoughts? Anyone tried this?

Thanks!

Thoughts? Anyone tried this?

Thanks!

Ali Boone · Answer

All but one of my out-of-state properties I bought turnkey, and yes, I've been able to do them all remote. The quality of your teams in that case is critical, but I've done it for years. Just have to keep an eye from a distance and make sure all is going well.

How far is Baltimore from you? That's a big cash flow city right now.

Mike Masland · Answer

@Ali Boone

Hi Ali,

About an hour away. Curious, what software do you use to scout for deals?

Sean Goulding · Answer

@Mike Masland

Recommend reading — Long Distance real estate investing by David Greene

Good luck !

Aigo Pyles · Answer

Remote real estate investing is on the rise. It is doable but like what you said the success depends on the team you have in that area.

Jon Crosby · Answer

@Mike Masland.

You sort of answered your own question, it's all about the team and 'boots on the ground' in that area you have at your disposal.  I have heard plenty of horror stories of buyers rushing in and just acquiring a team with little due diligence and also plenty of success stories of remote renovation and rentals because they have an awesome team in place.

Don't rush into anything and build a team first you can trust by getting lots of a recommendations in that area to start with. You might also want to look at some turnkey options if that area has some with good reputations, that will save you the reno part and get you cash flowing right off the bat if the numbers work.

Best of luck!

Pathik P. · Answer

I'll definitely have to take you up on that chat @Kelly Myers to learn more about CO

Kelly Myers · Answer

@Pathik P.

Hi Pathik!

Yes, she did charge an additional fee of 5% of renovation costs. I believe the standard fee may be a bit higher but we have so many with her that she gives us a discount. She did oversee the project but she also worked with all of the contractors, deal with bids, payments, issues during renovation, etc. so you want to make sure that you have a try project manager for those things.

We can chat further but I’m always happy to help out a fellow investor in viewing properties and making recommendations here in CO if you would like help!

Kelly

Pathik P. · Answer

Hi @Kelly Myers I'm actually figuring out remote rehabbing for my LLC. I'm seeing that a project manager is needed for most of the remote rehab. You mentioned that your property manager actually helped oversee one rehab. Did they charge for an extra service to do this? I have someone who is helping me as an agent and property manager, but was telling me that they don't oversee the rehab. Just that someone from the property management company could possibly swing by for status updates for an additional fee.

I'm also looking into getting into CO markets but don't really have "boots on the ground" there yet.

Kelly Myers · Answer

Hi @Mike Masland, yes it’s absolutely possible but as you said you MUST have a good team! I have 8, 100% remote properties but I have the best real estate agent, project manager and property manager possible (pretty sure I just lucked out). If it weren’t for her there would be no way to do it.

She walks my properties and ensures there is nothing major wrong before purchase that wasn’t caught and sends me videos. She works with my tenants on everything that they need and not one of them has moved out yet. She even went and got multiple quotes and project managed a rehab for me.

I think the biggest thing about being remote is trusting the people you work with. I’m sure if you found someone you trusted you could absolutely do it!!

Feel free to reach out if you have any other questions!

Kelly

Ali Boone · Answer

I don't use any. I buy turnkeys so I don't have to do the intensive work of identifying the properties... they do that.

Property ownership 100% remote. Doable?

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