Rental Property Investor · Indianapolis, IN · Member since 2020 · 77 posts · 37 votes
I'm looking to better understand the challenges that out-of-state investors face—particularly when it comes to renovations. As a local here in Indianapolis, I’ve seen firsthand how appealing our market is to investors from outside the area.
If you're an out-of-state investor navigating projects remotely, or a local with experience working alongside these investors, I’d love to connect and learn from your perspective. Open to all insights, stories, and advice!
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Hardest part I have seen working with investors is managing the GCs/timelines, confirming they did the work and not paying too much for each section. It is very easy for out of state investors to get took by shady GCs. Make sure to verify and not trust GCs blindly. Having boots on the ground helps
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Hardest part I have seen working with investors is managing the GCs/timelines, confirming they did the work and not paying too much for each section. It is very easy for out of state investors to get took by shady GCs. Make sure to verify and not trust GCs blindly. Having boots on the ground helps
@Maxwell Wuensch. This is a great question and honestly something I'd love to learn more about. Having people on your team who you trust and can get the job done is important. Making connections, building the relationships, and ultimately networking is the key to success. As an agent myself, I try to provide a boots on the ground service to people doing flips from out of state and guide them a bit. What do you think of this?
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
1y
Our investment arm has been doing it since 2005, so we have it down pretty well. We try not to work in areas where we don't have some sort of trustworthy "boots on the ground". That being said, keeping contractors on-task is the biggest challenge. I've found that a contractor will do great for a couple of jobs and then sometimes they'll start sliding. We just had one that tried to bill us for work he had done on another house and then played innocent when we called him out. You have to watch them closely and then be very, very clear up front what you expect.
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
1y
I think this goes for any project local or fair away. Managing the project will be the hardest part, making sure the project is done correctly, and the quality control is there. I have issues with this even with projects an hour away that are still within my market.
The one big thing that I would do is to have a project manager that is with full-time or a contract employee, or if you don't have the resources for this hire a realtor in the local area pay them a trip fee or something agreeable to make things work for both parties to get photos, confirmation that work is done weekly.
Rental Property Investor · Indianapolis, IN · Member since 2020 · 77 posts · 37 votes
1y
@Peter Mckernan Thank you for your insight. It’s interesting to hear that locality doesn’t necessarily assure a smooth project. Id like to message you 1 on 1. I am local to Indy and am trying to make investing for out of state folks simpler.
Rental Property Investor · Indianapolis, IN · Member since 2020 · 77 posts · 37 votes
1y
@Caleb Brown Thank you for your perspective. I live in Indy and my goal is to make investing in our city easier for out of state folks specifically. Could we message 1 on 1? I’d like to go into more detail with you.
Rental Property Investor · Indianapolis, IN · Member since 2020 · 77 posts · 37 votes
1y
@Doug Smith Thanks Doug. Sounds like longevity is the toughest box to check when it comes to working with GC’s. I live in Indy and am looking to make investing on our city easier for folks out of state. I will connect with you and send you a 1 on 1 message.
@Doug Smith Thanks Doug. Sounds like longevity is the toughest box to check when it comes to working with GC’s. I live in Indy and am looking to make investing on our city easier for folks out of state. I will connect with you and send you a 1 on 1 message.
I used to live in Indianapolis off of 82nd and Allisonville Rd. Bank One moved me to Tampa in 1996 and I've been here ever since. Our investment arm actually owned property there somewhere between 2012 and 2015. We used to do a lot more investing in markets where we didn't have boots on the ground, but Indianapolis was one of the markets where we struggled with contractors. We had a nightmare in Terre Haute on a deal with an Indianapolis-based contractor that we had done a couple of deals with and thought we could trust. I did a little "road trip" and hit several markets in a big loop over a week's time and just "popped in" to our holdings unannounced. It was obvious they were installing materials well below what they were charging us for and using materials that were ripped out of other jobs they did instead. I don't think they thought we would check. I love Indo and I loved living there, but we haven't done anything there in about 10 years.
Rental Property Investor · Indianapolis, IN · Member since 2020 · 77 posts · 37 votes
1y
@Jakob Mikhitarian Hey Jacob. Thanks for your insight. My angle here is to use my locality and relationships with local GC’s to make out of state investors lives easier on the renovation side. Would love to DM with you.
@Jakob Mikhitarian Hey Jacob. Thanks for your insight. My angle here is to use my locality and relationships with local GC’s to make out of state investors lives easier on the renovation side. Would love to DM with you.
Honestly, middle man that try to broker the services are the biggest pain. There's always a PM that knows someone that knows someone to do these rehabs out of state. That's the biggest problem. Constantly telling them no, visiting the site and getting to see who I am working with is crucial to working this out.
There's no real gain for the OOS investor for it, the middelmen are focused on their cut to be this bridge. There doesn't need to be a bridge unless you're taking liability and being forced to bear the financial pain. It just adds layers of communication and more capital. And actually excuse liability due to how it's usually an arms reach.
Wholesaler · Irvington, NJ · Member since 2025 · 112 posts · 53 votes
1y
Good topic, Maxwell. For me, the biggest challenge with managing rehabs from a distance has been communication and trust with contractors, making sure timelines, budgets, and quality actually match what’s promised. Photos and video updates help, but nothing replaces having someone local you can rely on to put eyes on the property. I’d say lining up that trustworthy “boots on the ground” person is the difference between a smooth rehab and a stressful one.
Rental Property Investor · Indianapolis, IN · Member since 2020 · 77 posts · 37 votes
1y
@V.G Jason Totally hear you. A lot of people get frustrated with middlemen adding costs and confusion without really helping. I’m not trying to be that — just trying to connect a solid contractor I trust with out-of-state investors who need reliable help. No extra layers, just direct contact and clear work. Appreciate your perspective — how do you usually find contractors when you're investing out of state?
Rental Property Investor · Indianapolis, IN · Member since 2020 · 77 posts · 37 votes
1y
@Doug Smith Wow, that’s rough — I can see how an experience like that would make it hard to trust anyone from afar again. It’s crazy how some contractors assume no one’s ever going to follow up or verify the work.
I’m curious — when you were investing remotely, what systems (if any) actually did help you catch issues before they got too far? Was there anything that worked well for you in other markets?
I’m trying to better understand what makes out-of-state investors feel more secure in a place like Indy, especially when trust has been broken before. Appreciate you sharing your story — it’s helpful.
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
1y
@Maxwell Wuensch We're 3/4 of the way through a rehab right now in Indy. We hired a GC but I'm still managing the entire project. I'm going over there today to make sure the exterior is painted correctly.
From a mom and pop investor prospective doing this OOS would be a nightmare. I would need boots on the ground that gets eyes on the project at least 1-2 times per week minimum. Cell phone pictures and texts from the GC doesn't cut it. I've made numerous small changes, bought materials, and resolved problems outside of our agreed SOW. Good contractors work fast, need materials when they need it (multiple jobs going), and get managed occasionally.
We're paying $27k just for labor. The details matter.
I'm looking to better understand the challenges that out-of-state investors face—particularly when it comes to renovations. As a local here in Indianapolis, I’ve seen firsthand how appealing our market is to investors from outside the area.
If you're an out-of-state investor navigating projects remotely, or a local with experience working alongside these investors, I’d love to connect and learn from your perspective. Open to all insights, stories, and advice!
Hey Maxwell, welcome to BP! Indeed renovations are one of the biggest hurdles for out-of-state investors because it’s tough to manage quality and timelines when you’re not there in person. The two biggest challenges I’ve seen are finding trustworthy contractors and keeping projects on budget/schedule. Communication is everything, so having people on the ground who can send you photos/videos and give honest feedback makes a huge difference. A lot of investors also lean on property managers or agents they trust to check in on rehabs. I moved from Portland, OR to Columbus, OH in 2020 to start investing and now have 10+ rentals, and I’ve seen plenty of out-of-state investors succeed here as long as they build the right team first. Columbus is similar to Indy in that you can still find affordable properties in the $120–180K range that cash flow and hit the 1% rule, and because there’s so much job growth and population growth (Intel, Amazon, Google, Honda, etc.), the appreciation upside is strong too. Long-distance investing absolutely works, but the key is systems, communication, and a solid team. Happy to connect and answer any questions you have!
Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 682 votes
1y
To me, the biggest challenge is that most contractors tend to over-promise and under-deliver. They’re excellent with their hands but often mediocre at managing timelines. I’ve learned not to fight that, but to embrace it. Instead of trying to “educate” them on my way of doing things (which hasn’t worked in 20 years), I focus on building around their weaknesses.
What’s worked best is having someone with strong psychology and relationship skills as a foreman—someone who keeps the contractor relationship healthy—and pairing that with a project manager who may not even need to be on site but has the skill set to manage timelines and budgets virtually.
The truth is, contractors are a revolving door. The good ones often get cocky and lose control when they try to scale, and the bad ones usually circle back later asking for another chance. My approach is to accept that rhythm, structure my systems around it, and keep moving projects forward.
Remote renovations can work very well when managed properly. We’ve delivered more than 580 investment properties to clients around the world, and every one required some level of renovation. Over the years we’ve learned what works and what doesn’t. Here are a few key lessons:
Use the right people: Handymen often deliver better results than contractors at a fraction of the cost, as long as they’re properly overseen.
Oversight is key: Without regular on-site overwatch, you will have increased costs, schedule delays, and poor-quality work. We have a dedicated team member who visits each job site every other day, records progress videos, and ensures work is being done correctly. Managing renovations remotely without your own local representative performing overwatch will inevitably lead to problems.
Leverage matters: Working with an experienced team that manages multiple projects ensures vendors take every job seriously, large or small.
Renovate smartly: Focus only on upgrades that match your target tenant segment and can be cost justified.
With the right team, clear documentation, and consistent oversight, remote renovations can be just as effective as local ones.