Owning a Property Out of State

5 Replies

Hello BP!

I do not know wether or not this question has already been addressed a lot on the forum or is a obvious question, but I couldn't find the answer so I thought I would open it up for discussion. 

This question is mainly for turn-key investors and out of state buy and hold people. If you regularly buy properties out of state properties how do you manage them? As in how do you find tenants and maintain the property? I assume a lot of people hire property managers to deal with the local stuff and then deal with logistical stuff via internet. I was just curious what different strategies people employed to deal with their properties remotely. I am really curious what someone like @Ali Boone does seeing as she invests mainly in turn-keys. How do you keep all those properties straight! Thanks for all the advice!

Rob

Good question Rob. I think self managing is much easier today than it used to be. There are so many online tools that can help like craigslist and mysmartmove for screening etc. You would still need someone on location, handyman, lawyer etc but it is more doable these days with the interweb. The choice depends on how much you want to be involved. I know there are some great PMs and turnkey companies provide PM services as part of the deal. I think some of this PM stuff might depend on how many you buy.

If I remember correctly Ali has 4 properties out of state and she only uses PMs for example. Most all repeat turnkey buyers use PMs and thus the name "Turnkey" should translate to much less work involved for the owner.

I have had 2 out of state self managed and I like the control. If I get upto 4+ out of state I might just use a PM too. For just one or two I found self managing easy to perform but that mysmartmove was really what made that possible. I do already have a small staff with my regular business so it is not actually me taking calls personally but I do oversee the managing part.

There is a nice gentleman on BP who runs the largest TK company in the country. Perhaps look him up too Chris Clothier, he has tremendous experience with turnkeys and posts on bp regularly. He manages 2700 turnkeys for investors and has seen it all in this turnkey space. 

 Good luck with your search!

We have owned rentals in AZ for a few years, and just bought one in CO last month.  We have PMs for both states, and we coordinate with them via phone and email regularly.  For the AZ properties, we have gone out there ourselves to do some work on it initially, to get them looking good (such as, we did xeriscaping), and now they pretty much just run on auto-pilot with routine stuff.  We have never done turn key, so I can't speak to that.

Hey Robert! Excited you mentioned me :)

Yep, I use PMs for everything. I don't do any of it. The turnkeys come with tenants and PMs in place, but if anything changes with either of those....either the PM finds new tenants, or I find a new PM if I need to. I've never had anything I couldn't handle over the phone.

@Robert Laird  

Like Ali, I invest in turnkey properties only (thus far), and this means for me that tenants and PM come in place.  Having really good PM in place is one of the keys to successful passive investing in rentals.  Preferably the PM should have established online accounting for clients and electronic transfers.  Issues do come up and I am in quite regular contact with PM.

Larry Fried, Real Estate Agent in OR (#201211636)

Glad to hear the great options for out of state rentals - but have to toss in there that it is SUPER easy to buy and sell rural land out of state. We, quite often, buy and sell property and never even see it! As long as you buy it right (do your homework, etc.), market it correctly, you can sell it quickly with a nice profit and never have to leave town! 

And if it takes a few months to sell, there is nothing to maintain so it's perfect.

Holler if anyone needs tips!

Happy Monday!

Jill

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