Insurance Agent · Las Vegas, NV · Member since 2019 · 158 posts · 80 votes
Hey guys, I'm looking to purchase 2-3 single family homes out of state. Up to this point I've only owned my primary residences, but I've been able to save up about $150k that isn't doing much in the bank.
I still have a full time job and just looking to find properties that can meet a 5-10% return in good neighborhoods. I've only really been able to find the type of deals that can get me this outside my market of Las Vegas (at least for now even though things may look drastically different in a few months).
In thinking about your first renovation projects, how did you get comfortable determining the costs of rehabs? Especially for property outside your ability to go see it yourself, what ways can I improve my understanding of determining rehab costs?
Any help is much appreciated! You guys are awesome.
@Jacoby Atako I would personally recommend starting your investing in the state in which you live in. Construction management mistakes can be extremely costly, and the best way to learn is going to be through experience. If you must invest out of state, I would recommend getting multiple opinions on the subject property (property manager, contractor, agent, etc.). Ask for pictures, a detailed scope of work, and do your homework on what certain items should cost. Lastly make sure to get multiple bids from different contractors. If prices are about the same, you will know that you're on to something!
@Jacoby Atako I agree with @Terry Lao. $150k would go a long way in Cleveland, property taxes not withstanding. It's only that high in certain pockets of the city which are easily avoidable. But with that much cash you could probably get 2 properties in solid C+ neighborhoods bought, updated and rented with the returns you are looking for. My husband and I are investors/agents here and we have done it multiple times ourselves. Happy to help if you're interested in exploring further.
I have been considering doing the same. My situation is a bit different as I already have the property but it needs a complete rehab and am a bit leery of doing a long distance full gut rehab. I do have friends family in the state of my property that could be a point of contact but still makes me a little bit nervous.