I'm located in Cary, IL which is a suburb roughly an hour NW of Chicago. The multi-family inventory is pretty low out here and I'm considering doing deals in Chicago, and various suburbs to broaden my scope.
For those of you who are full time W2 employees and part time investors/landlords how far from your place or residence do you generally pick up buy-and-holds? Do you generally pick up units that have been recently renovated to cut down on repair frequency or are you still willing to take on somewhat "long distance" projects to maximize returns?
Hi @Michael R. . I like to have my rentals a maximum of 15-30 min drive from my house. That said, I also like doing the renovation work myself, which is the main reason I like to be close. I work a full-time job so it makes a huge difference to be able to drive over in the evening if something comes up. Personally, I would be hesitant in purchasing something at a distance unless there was another partner or person I could trust in the area.
Finding a good local property manager is one of the keys to successful long distance investing.
However, finding a GOOD manager is easier said than done.
Best of success!
For me it isn't about the initial drive from my home ot the properties, but the distance between the rentals. If I have 50 rentals that are 90 minute drive, I can check them all at once.
So if you find a pocket of great investments, then get a bunch there. Where people struggle is by having one property here, another 15 miles away, another 30 miles the other direction, etc.
my farthest is 7 miles, but in one direction. kind of like a baseball field. i will not go much further than that.
there are tons of people on here that do out of state investing, i would be scared to death to do it unless i have a great friend or a family member there.
I had some experiences on rental properties 1 hr drive away. Initially I though they can make good investments since nothing make sense in where I live and that is the nearest place I can find rental properties.
However, it doesn't take too long for me to regret on my decision. Even with referred property manager, the properties/tenants still have all kinds of issues that I'd prefer to double check it myself. That's when I realized that I hate to drive 1 hr to just get there, and stuck in the traffic frequently make it even worse. Now I only invest out state turnkey properties and have others manage the property for me. And as Johann said, good property manager is so hard to find.
Thank you, everyone! I appreciate all of the great responses. I think I'll actually learn from some of the pain felt by those who have come before me instead of learning the hard way (my usual preference ;P). I'll keep it to 25-30 mins max, stay patient, and use some marketing strategies to find off-market deals.
I wouldn't want to buy anything more than 20 minutes from my house, since I do most of my own work. I also don't want houses going in different directions, so I aim to buy everything in the same area of the city.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing