Out of state

5 Replies

Hi there folks-

I'm looking to make my proverbial first investment and from listening to the podcast and reading some of the seasoned investor posts, it looks like multi family is the way I want to go. The only problem is that I reside in Chicafo- a market where a good majority of the steals are gone (my budget is ideally paying no more than 120K for a four plex). 

I wanted to go to other areas of the country - Winston Salem is appealing, but I'm not sure how many problems that will create with property management. Ultimately I have no desire to be involved in anything but cutting checks and I'll happily give 6% of my Gross Revenue to a property manager. 

Is buying out of state on a multi family with a fully outsourced property management approach a bad idea?

6% seems low. i thought they keep at least 8-9% if you give them multiple properties.

@Brie Schmidt is super involved in that area, so she can help u.

@Saad Handoo

 Property managers take about 10% of gross rents.  Your issue is going to be that you will only have 1 property with the PM so you are the low man on the totem pole.  I buy properties all the time from out of state investors who are failing and the #1 reason is they are not a priority to their PM. 

Brie Schmidt, Real Estate Agent in Illinois (#471.018287) and Wisconsin (#57846-90)
You should consider checking our market our. With that budget I could prob get you 6-8 units in Cleveland

there are opportunities in Chicago on the south side that more than fit your criteria. If you can avoid following stereotypes , hire quality PM, you can meet your investment goal !

""Ultimately I have no desire to be involved in anything but cutting checks and I'll happily give 6% of my Gross Revenue to a property manager ""

If you are only giving a PM 6% you will be doing a lot more than cutting checks.........better add...mowing lawns...painting fences...changing light bulbs...serving notices...and so on and so on.....