I’m new to rental property investing, and I’m trying my best to educate myself and build foundational knowledge on real estate investing as a whole. I am part of an investment group made up of 6 people most of whom live on the east coast (SC, NC). A couple of us live further west (KS, MN).
Therefore, I am interested in what experiences/opinions others have about out of state rental property investing?
Thanks in advance!
Hi Thomas, how's the Wichita market?
I'd be very reluctant to be an out of state investor unless you have to be. I am not a fan.
@Thomas Cottrell welcome and if you presently live in Wichita have you ruled out investing there?
@Thomas Cottrell , you are correct about pros and cons of out of state investing. In my experience the pros outweigh the cons. Done correctly and with some due diligence on your part you can minimize potential risks. Having someone on the ground near the property is a big help. For me, I won't rule out a deal because it's located elsewhere. I'm in Florida and I have done deals throughout the US. Yes, there's the occasional hiccup, but most go according to plan.
Hi Thomas, I saw your post on learning about investing out of state, I’m working on the same. Would love to grab coffee or lunch sometime if you are free.
Thanks for the advice! Our group’s goal is to own property in a state where at least one group member resides in. But we are curious about the alternatives as well (out of state investing).
As for as the market in Wichita, housing prices are fairly low relative to what I’ve seen on the east coast. The cash that our group is willing to put towards a down payment would probably get us more house here than in NC or SC. However, with housing costs being what they are here, I’d have to imagine that the price point between being able to own a house and having to rent is closer. I would think this would cut down on the percent of the population who is on the renting side of the spectrum.
Like I said, I’m new to the area and new to real estate investing. I need to do more number crunching and networking to decide if Wichita is a good place to invest.
I have not completely ruled out investing in Wichita. However our group seems to be leaning more towards investing in the Raleigh,NC area. 2 of our group members live there.
Do you own any rental properties in Wichita?
Thanks for the advice Michael. From your experience, what are some of the potential risks/hiccups that came up? Which ones surprised you more that others?
@Thomas Cottrell I’m an investor in Charlotte, NC. No advice on the out of state portion but if you and your group wants to chat about the Charlotte area I’d love to lend a hand
@Thomas Cottrell , if I'm doing a distance deal it's always with a short term approach, say a cooperative assignment. Long distance, long term rentals can be problematic. I've done a few over the years and it seems that small issues and problems become bigger when you're 2000 miles away. But you can minimize that with some reliable people on the ground locally.
All that said, my comfort level is long distance = short holding period.
@Thomas Cottrell yes I have 6 and manage 2 for a couple others. Stopped buying anything the past 2 years to focus on our business in Topeka but by the end of this summer/start of fall I have a goal to start acquiring more in Wichita.
you already live in a state were investors buy.. not sure why U would wonder about.
SC in Charleston particular is very robust.. however do check prop tax's the play there is LEGAL air bnb
and student housing.. Students will pay 800 to 1000 a month per room..
run the numbers.. But do keep in mind Charleston is basically a world class destination so 4 to 5 caps are the norm
@Thomas Cottrell Wichita area is a great place to buy for cash flow. No shortage of renters here it is still very much a sellers market here because there is a shortage of housing. If you are looking for appreciation you won’t get much but it is a great place for buy and hold.
@Jared Viernes I dont have any knowledge on out of state investing. I can say Wichita is a good place to buy and hold. I have 4 house rentals and am looking for a duplex as my next move. The nice thing about Wichita is a small investment can bring a steady income
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