Updated almost 12 years ago on . Most recent reply
Out of state investing
Hello, I am new to the group and just starting my road to real estate investment education. My question is,
Does anyone know the Danville, IL market. It is where my husband was from originally but now we are in the STL area. We know the area is depressed and there are alot of cheap houses to be bought, we are just now sure if this is the right move for us. Our goal is to buy and hold for passive income. we would like to have around 20 properties total by 2018. any thoughts on buying out of state distressed SFH's for the first time out?
Most Popular Reply
OK, I don't think most of this chain is answering Jennifer's question. Even the arguments for or against out-of-state investing aren't helping her (in my opinion).
Jennifer, you are asking about two things: buy locally or don't, and buy distressed or don't. Whether you should buy locally or not depends on your personal preferences. I agree that Missouri should have quite a bit of properties not too far from you that you could hit up, but if you want to buy out-of-state or out of your local area, there are plenty of ways to do that safely and with minimal risk. Those ways can be explained and/or taught outside of this post. Then, for buying distressed or not, again it depends on how much risk you want to take. To be honest, taking on a distressed property in further away from you is extremely risky. With everything else, there are ways to be smart about it, but that combo of investing (distressed and far away) is going to be the hardest combo you can do, and if you are new, it's a huge risk.
I'm an advanced investor and I won't buy distressed properties simply because I don't want that risk or workload. But if I were to buy one out of my local area, I would only do so assuming I had a no-joke insanely awesome team in place to deal with it. Huuuuge risk.
For a first-time investment, I would say try to go for the least distressed property you can, but if you are going to have to work on a property, keep it closer by. Or buy a property out of your local area that doesn't need work.
Hope that helps!