Investing from Out of State

4 Replies | Cleveland, Ohio

Hi fellow BPers!

I am just getting into real estate and am looking for some advice in regards to investing in the Cleveland market from out-of-state. I am active duty military, currently stationed in the DC area. My goal is to invest in multi-family properties that (ideally) meet the 2% rule and will be cash flow positive. As I'm sure you well know, those properties aren't exactly plentiful in my current location.

This has brought me to the idea of out-of-state investing. Cleveland seems to have great potential in terms of the properties I'm looking for. Unfortunately, my job prevents me from being able to readily travel to Cleveland, and so I was hoping to get some insight on investing in the Cleveland market from you all.


1) Is it possible to complete sound real estate deals remotely, without having to physically be in the city all of the time?

2) Would it be foolish to try and "landlord from afar", or should I just go the PM route right from the get go?

Thanks everyone for your time. If you have any other advice in regards to investing in this area, I would be incredibly grateful!

- Max

If you buy a 2% property long distance, be prepared to lose money. A 2% property is going to be high risk, combine that with the inherent risk of investing long distance, and those 2 things wont multiply each othet, they will be exponential.

@Max Fowler

1. Yes. There are many out of state investors who have successful out of state real estate businesses (myself included).

2. In regards to the PM route, it all depends on the size of buildings being purchased and what your long term goals are. I personally use property managers for all my buildings because my main goal is to focus on growth.

Best of luck and thank you for your service!

There is a trade-off with higher returns and as @Russell Brazil said, that trade-off is risk. Lower-cost properties will bring lower-tier tenants that will give you more headaches and be rougher on your property. Do your homework and know what you're getting into beforehand.

There are those who do distance landlording, but if you can find a good PM, they'll take a lot of your plate and allow you to focus on growing your business.

Originally posted by @Max Fowler :

Hi fellow BPers!

I am just getting into real estate and am looking for some advice in regards to investing in the Cleveland market from out-of-state. I am active duty military, currently stationed in the DC area. My goal is to invest in multi-family properties that (ideally) meet the 2% rule and will be cash flow positive. As I'm sure you well know, those properties aren't exactly plentiful in my current location.

This has brought me to the idea of out-of-state investing. Cleveland seems to have great potential in terms of the properties I'm looking for. Unfortunately, my job prevents me from being able to readily travel to Cleveland, and so I was hoping to get some insight on investing in the Cleveland market from you all.


1) Is it possible to complete sound real estate deals remotely, without having to physically be in the city all of the time?

2) Would it be foolish to try and "landlord from afar", or should I just go the PM route right from the get go?

Thanks everyone for your time. If you have any other advice in regards to investing in this area, I would be incredibly grateful!

- Max

You need to find boots in the ground and it's not easy to find communicative good ones... 

Even in the midwest you find 2% rent only in d areas