I am a new real estate investor from NJ who is currently based in the DC metro. I don't feel that there are good deals to be had in either of these areas, so I am interested in long-distance investing.
I am currently in the process of closing on a home in the Midwest, and would love to get your opinion on whether you think it is a good value. It seems to me that it is -- it is a 6-unit home, total rent is $2,350/month, and the accepted offer price is $82,000. However, it is very old (built in 1895) and I am afraid of potentially high expenses. Also, I definitely need to hire a property manager, so please let me know if you have any tips on finding a reliable and experienced property manager.
Please private message me if you are willing to help, and I will send you a link to the offering memorandum which contains a breakdown of financial information.
Thanks so much,
Hey @Joyce Chiu welcome to BP!
We feel the same way here in Southern California about investing long distance. I would say your team on that ground in that city is going to be as important as the property you are about to purchase. We preach establishing your team first before purchase. Have you had your contractors and inspectors look over the property? One thing about older properties is that if they're not properly rehabbed it will be a headache for you, especially if you're not close to it.
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Wishing you the best!
For your first time investment, I would recommend a single family home and section 8 the home out if you are doing long distant investing. Don't know if you have family or friends in the area, but 6 units and a 100 year plus home can become a problem. 6 tenants or families, how are you going to resolve maintenance problems. Some property managers see that you are a out of town landlord and will bleed you of cash. Hope you did your due diligence and don't just look at the rents.
18 years of investing
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