Strategies for expanding outside of state

4 Replies

Hello team, looking for strategies for investing outside of state (rentals/duplex/quad etc., flips? How does one start, where to look (hot areas up and coming), how to manage such venture (management company, etc). I've basically exhausted resources in CA and looking to expand out of state.

This is an answer for @Lucas Carl

That's your expert for remote (out of state) STRs.

Now if you want to manage your WRs that are within 3-30 minutes of your own residence, I would be the one to answer that.  My 22 STRs are WR's.  

Thanks for the kind words @Paul Sandhu

@Mark Tinawi    I’m happy to hop on a call any time and teach you everything I know. Expert I may not be but I manage 6 VR that I also own, remotely, with a day job.

Mine are cabins in a very high traffic tourist area. 12 million visitors per year and we’re a 12 month market. Smoky Mountains in East TN. But a lot of what’s we do will apply to other markets. 

DM me for my number happy to help! 

@Mark Tinawi My favorite piece of advice is to pick some place you know, have visited, know people in, have a cousin in, etc. Basically, someone who can steer you away from the 'bad parts of town' which don't always materialize quite so quickly on a crime heat-map or in pictures of a subject property.

If you're looking for a "hot" area, good luck.  Almost by definition, the area is hot *because* there have been big price jumps.  So if it's hot now (read: Seattle, Austin, Nashville, etc.) you could still have room to run up but it's not like you're getting in on a secret ground floor.

As for vacation rentals or STRs, I'd stick with the beach areas if I were in your shoes.  And I'd also beg @Lucas Carl for his time and see how he manages in properties.  The major thing (outside of "wind insurance") that prevents me from pulling the trigger on a vacation rental is having to give up 25% of gross rents (ballparking) to a PM.  It makes it really, really tough to pencil out.  And it gets worse when you look at mountain/ski towns where PM fees are often higher with a shorter peak season...yikes.  Again, if you can self manage that vastly changes the economics.

@Andrew Johnson nobody has to beg me for my time you’ll be more likely to say “how do I get this guy to shut up” LOL

I’m always looking for an ear to bend and I always learn something in the process!! 

And yes your are correct typical PM fee in my market is 40 (yes -four zero) percent. I do everything from an iPhone for 100% :) 

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