Out-of-State House Flipping Advice

16 Replies

Hey all,

I am very new to BP and real estate investing in general, so I would like to ask the community for advice on their experiences with Out of State House Flipping. For perspective, I'm a recent college graduate who currently lives in the Queens, NY area and I've been searching for homes in Connecticut and PA but have not any luck with affordability(100k or below). Does anyone have advice for a beginner? Horror stories and Success stories? Thank you!

Hey @Joe Vertuccio it seems that we are from the same area. Good to see other people from the area on BP too. This area is a tough market. What I did was I got my father (partner) to help me out. The market its self is expensive. Some advice would be to work as much and save as much as you can until you can afford a down payment where you would be able at that time hopefully to get a mortgage or loan for the rest. Thats what I am trying to do right now. If you haven't established credit yet I would definitely try to get a credit card to start establishing credit to get ahead of the game for when the time is right. Another thing I would to is try to find some the works in construction or anything to learn the in's and out's of the "Do it your self work" so when the time comes you don't have to pay for it yourself. Just some tips to maybe save some money down the road.

516-242-2365

@Joe Vertuccio I recently moved from CT to NY. I am having a very tough time landing a deal here to flip. Houses sell for quite a bit higher than I can make money on. I have shifted a bit of my focus back into the CT market where I was landing deals before. I have a bunch of solid contractors and some time to head back when I need to for oversight. I however am only doing this because of my contacts, and previous success.

Originally posted by @James Thomas Nakashian :

Hey @Joe Vertuccio it seems that we are from the same area. Good to see other people from the area on BP too. This area is a tough market. What I did was I got my father (partner) to help me out. The market its self is expensive. Some advice would be to work as much and save as much as you can until you can afford a down payment where you would be able at that time hopefully to get a mortgage or loan for the rest. Thats what I am trying to do right now. If you haven't established credit yet I would definitely try to get a credit card to start establishing credit to get ahead of the game for when the time is right. Another thing I would to is try to find some the works in construction or anything to learn the in's and out's of the "Do it your self work" so when the time comes you don't have to pay for it yourself. Just some tips to maybe save some money down the road.

 Hey James, 

Thanks for the reply. Glad to see fellow Massapequa natives investing! The New York market is crazy. I'll be graduating in a few weeks and hopefully will be working full time in a few months, so I can begin saving soon but it just seems like such a monumental task here. I do have some experience with a GC in Queens and am in the process of establishing credit but that down payment is the big one haha. Cheers!

Originally posted by @Brian Pulaski :

@Joe Vertuccio I recently moved from CT to NY. I am having a very tough time landing a deal here to flip. Houses sell for quite a bit higher than I can make money on. I have shifted a bit of my focus back into the CT market where I was landing deals before. I have a bunch of solid contractors and some time to head back when I need to for oversight. I however am only doing this because of my contacts, and previous success.

 Hey Brian,

Thanks for the reply! Yeah, I've only recently began reading up on investing and it just boggles my mind how people make the move TO NYC anymore haha. I think that'd be a great idea to refocus yourself to what you know before you make the plunge here. I may be wrong but I believe the market has been heating up the last few years so maybe you'll yourself with opportunity in NY soon enough! 

I wouldn't recommend that a brand new investor start by trying to flip houses out of state. I had nearly a hundred slips under my belt prior to starting to invest out of state, and I still found it to be very difficult and frustrating. Unless you're willing to spend at least a month or two in that local market building a team, finding deals and managing the process, you will likely find yourself in the situation where you can easily be taken advantage of.

Also, if you're going to flip long-distance, make sure that you have the flexibility to hop on an airplane at a moment's notice when the need arises. Or, at very least, have somebody you trust 100% on the ground who can make hard decisions for you.

Good morning Joe,
I agree 100% with J Scott. Beginning investors without an out-of-state team oftentimes find it best to start investing in their local market.
The house-hacking strategy is an attractive one for beginners because it allows you to get your feet wet with little money down. You’d be living in your investment property while renting out the other unit(s). Tenants will be helping you pay off your mortgage while you gain acquisition & management experience. When you’re ready to move on, you can rent out the space you lived in and move onto your next investment.

Best of luck to you!

Abel

Abel Curiel, Real Estate Agent in NY (#10401295960)
Originally posted by @J Scott :

I wouldn't recommend that a brand new investor start by trying to flip houses out of state. I had nearly a hundred slips under my belt prior to starting to invest out of state, and I still found it to be very difficult and frustrating. Unless you're willing to spend at least a month or two in that local market building a team, finding deals and managing the process, you will likely find yourself in the situation where you can easily be taken advantage of.

Also, if you're going to flip long-distance, make sure that you have the flexibility to hop on an airplane at a moment's notice when the need arises. Or, at very least, have somebody you trust 100% on the ground who can make hard decisions for you.

 Thanks for reply! I agree with you that jumping into out of state flipping is a risky prospect early on. I have a nice network out west and I thought that it might give me a leg up in this situation but I'll reassess my approach.

Originally posted by @Abel Curiel :

Good morning Joe,
I agree 100% with J Scott. Beginning investors without an out-of-state team oftentimes find it best to start investing in their local market.
The house-hacking strategy is an attractive one for beginners because it allows you to get your feet wet with little money down. You’d be living in your investment property while renting out the other unit(s). Tenants will be helping you pay off your mortgage while you gain acquisition & management experience. When you’re ready to move on, you can rent out the space you lived in and move onto your next investment.

Best of luck to you!

Abel

Thanks Abel! I think you might be right. I'm just eager to get started haha.  

Hey Joe! Good question man! So I’m a house flipper and I do it pretty much locally ( within 30 mile radius) but I started out being a personal assistant about 8 years ago for a couple of real estate investors who did flipping as those primary business. Marketing is pretty easy to do anywhere you have an internet connection but the actual rehab Itself is where this can get a bit tricky.

The people I worked for used to have project managers that were thier(boots on the ground). They would handle the management of the rehab and contractors locally. They also had a local realtor that was familiar with that market as well. If you find the right people there locally flipping could work when you live out of state.

Focus on marketing. Always make sure you have deals coming in. The real estate part is irrelevant if you don’t have lead flow.

What are you planning on doing for marketing if you don’t me me asking?

Originally posted by @Zachary Wilson :

Hey Joe! Good question man! So I’m a house flipper and I do it pretty much locally ( within 30 mile radius) but I started out being a personal assistant about 8 years ago for a couple of real estate investors who did flipping as those primary business. Marketing is pretty easy to do anywhere you have an internet connection but the actual rehab Itself is where this can get a bit tricky.

The people I worked for used to have project managers that were thier(boots on the ground). They would handle the management of the rehab and contractors locally. They also had a local realtor that was familiar with that market as well. If you find the right people there locally flipping could work when you live out of state.

Focus on marketing. Always make sure you have deals coming in. The real estate part is irrelevant if you don’t have lead flow.

What are you planning on doing for marketing if you don’t me me asking?

Thanks for the post Zach! I appreciate the insight. I actually dont have a marketing plan right now, as I am extremely new to REI. I wanted to field a question like this and the feedback I've received has been amazing.

@Joe Vertuccio while the drive is not too bad from Massapequa to Connecticut, I wonder if you are going to find better deals here than in Long Island. Without having much knowledge to your situation, my recommendation is not limit yourself to your monetary restrictions ($100K) and instead focus on finding an amazing deal and partnering with someone to hit a home run. It's very likely that within a short distance of where you live and in an area that you know you can find some pretty beat-up homes that no one has reached out to yet. You might also know local contractors and Realtors to help you in the process. You also might know about a home situation where someone needs to get out and have an inside scoop.

However, if you think investing is out of state is better, give it a try. No harm in calling a local agent and seeing properties and putting numbers together.

Best of luck.

Jonathan, Thanks for the reply! I definitely believe there are deals to be found on long island and as you said, partnering up with someone to find the right deal is another option. All great advice. I just finished school yesterday so I'm now officially just starting out in the real estate investing world.

The very best advice you can receive is to find a job elsewhere when you graduate. Staying where you are when you have all the advantages and opportunities ahead of you is ridicules. If you want to invest in real estate go to where the money is. Staying where you are is neither rational or logical.

As for flipping long distance there are probably more horror stories associated with that scenario than any other aspect of real estate investing. If you are new and have not developed a well seasoned team you will need to visit the job site daily to insure you are not getting scr**ed. Contractors !!!!!!!!!!

Thanks for the reply! Yeah, after some thought I think due to my beginner skill level I think I'm going to househack before anything else. Learn how to handle tenants and day to day house needs in the very house I'm living in. 

Originally posted by @Kuba F. :

It's certainly possible, but requires people you trust to be on the ground.  If you have a network already that might be adequate, but building one from scratch requires some time and often a few false starts.

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