Advice for buying STR out of state?

Question

Hi there - I'm considering buying a STR out of state (I live in the SF Bay Area, so costs are pretty outrageous here). I'd love any advice on identifying and vetting properties from afar. I'm also curious if anyone has worked with Awning to purchase a STR...some of their listings do look quite good. Many thanks!

Tyler Solomon · Answer

I would consider taking a look at this article by @Leslie Anne Morris - she is very experienced and highlights some great points here. Get in touch with local operators / agents / property managers in the area(s) you are looking at - they will have the best "boots on the ground" info available!

Christian Ehlers · Answer

I bought my first rental property out of state and I will say if you aren't well versed in real estate investing or the industry as a whole, you will find it very stressful. I typically advise people to buy at least in driving distance from them from the first one, unless they are very comfortable with the idea, that way they at least get started.

Anyways, if you do buy out of state, I would recommend getting a realtor local to the area as their connections can be huge (market knowledge, knowing the right properties, handymen, cleaners, etc). The airdna website can give you a starting point for understanding revenues in the area you are interested in.

Can't say I've worked with awning though, hope this helps!

Travis Timmons · Answer

We own two properties over 2000 miles away from where we live. They were also our first two investments. You can do it. You'll learn a lot as you go and will spend a fair amount of time in the "Holy crap! This better work, we're spending so much money" phase. I would recommend buying a property that will get to market and be ready as the busy season hits. You're going to want the rising tide of the busy season to help you off to a good start. It'll also set you at ease and do wonders for your emotional health and ego to see your highest earning months of the calendar right away.

Erika Albert · Answer

I'm not confident in Awnings ability to properly represent you in a sale.  Their preferred agents for Austin are all based out of Houston which is an entirely different market.  I like what they're doing on the tech side, but you need an agent who knows the local area, local STR regulations, and booking trends.

Collin Chan · Answer

There are some good books including some here on BP that focus on STR investing.  Avery Carl's book is a great place to start.  Plenty of Youtubers out there as well which I'm sure you've listed to on BP podcasts or through watching videos.

I started out partnering for out of state and have really just found great people that aligned with my interests and goals through connecting on BP.  Networking is a great first step.

Collin

Kenneth Garrett · Answer

@Monica Boyles

I used the Short Term Shop with Avery Carl.  I know where I wanted to buy, my price range and cash flow I was seeking.  She and Luke were very helpful.

Brian Barch · Answer

I used awning for research, and now use them as a PM, although my property is 2 hrs away. They have been great and are very legitimate.

Leslie Anne Morris · Answer

I wrote a blog post on it recently What to Consider When Buying Income Properties Out of State (biggerpockets.com)

Kristina Kuba · Answer

@Monica Boyles

Look for agents that align with your interest. Interview a few and see what is a good fit for your STR aspirations. The agent you choose should be an investor themselves because they are going to have the rolodex of plumbers, cleaners, lawn care, etc. that are reputable and low cost. If you are not self managing, make sure to see if they can provide you with plenty of referrals of STR hosts that are cost effective and have superhost status.

Good luck. Please reach out if I can answer any additional questions.

Andrew Steffens · Answer

Hey Monica!

I am a medium sized PM in Tampa Bay area, and actually most of our clients are out of state (quite a few from SF area too).  I would make sure you have a Realtor or PM who is well versed in the area, and make sure you have a plan for furnishing and any renovations that the property may need, and make sure your expectations are realistic for all things; everything from the purchase, renovations (if any), furnishing, listing, and all things the PM does or does not do.  I hope that helps! If you are interested in the Florida market let me know and I can give you more specific advice

Advice for buying STR out of state?

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