Pros and cons for investing out of state,
So I have been following the market lately and the tri-state area that I’ live around does not have that much cash flow around me unless you can really find an awesome deal. I love in Delaware so my tri-state is Philly and Jersey , Ohio seems to be doing great so I guess what I’m trying to say is there good that comes with investing out of state as a beginner.
@Richard Miller jr cash flow isn't everything if you have little to no control over the property it can all be squandered by mismanagement. This isn't saying you shouldn't invest it off state just that you should be more careful.
@Richard Miller jr There are pros and cons to out-of-state investing. I started investing in my city of Columbus, Ohio. I got lucky because it turned out to be a great market. If you plan to invest out-of-state then the most important thing to do is develop a great team before you get started. You will need a Realtor, Property Manager, and Contractor.
@Remington Lyman Thank you so much for the infoI
@Richard Miller jr tons of people invest out of state. Just make sure to utilize a team that others have vetted. Ask to see past deals they've done, read reviews and maybe even talk to some of their recent clients. If the numbers look good and real people back that up, it's a great step!
@Alyssa Dyer Thank you for the insight, I really appreciate it
@Richard Miller jr of course! Out of state investing is what I'm most specialized in, so I'm happy to answer questions!
@Alyssa Dyer Thank you I will always keep you in mind for when I start my first deal out of state one day.
@Richard Miller jr I would be curious to find which pockets of Philly you have been looking into. Relative to the other major metropolitan markets (Austin, Denver, Atlanta, Tampa, etc..) Philly is actually incredibly abundant with cashflowing opportunities. Cashflow is dependent on so many factors- how appropriate the rehab is for that area, your credit or leverage for your mortgage rates, the effectiveness of your property managers, your HO insurance rates, etc. Cashflow also isn't necessarily king. Depending on your strategy, you can sometimes forgo high cashflow in favor of appreciation. But that all depends on your goal!