New Member - Exploring Out-of-State Rental Opportunities

[Christopher Rubio]

Hello Everyone,

I am new to BiggerPockets and excited to connect with like-minded investors.  I am based in California but looking to invest in out-of-state rental properties to take advantage of better cash flow and more favorable price-to-rent ratios.

Right now, I am particularly interested in :

Markets with strong demand

Properties under 80k-125K (single family or small multi-family)

Areas with steady job growth and landlord-friendly regulations

My background 

• I am a military veteran.  I have also been in the federal sector for nearly 15 years and am now wanting to build a portfolio for long-term (supplemental) income and early retirement.

• I have research in various area such as Memphis, Cleveland, St. Louis and open to other suggestions

What I am hoping to learn from this group:

• How you have approached team building from a distance (agents, property managers, contractors, etc.)

• Mistakes to avoid as a new out of state investor

• Recommend neighborhoods or cities you have had success with

Overall, I am here to learn, share my journey and build relationships that lead to win-win deals.  I hope one day I will be on the other end of a similar post like this providing new investors my knowledge and insight in real estate investing.  Looking forward to connecting with you all!!

Chris R

[Jason Ha]

I recommend finding the agent first and make sure you have a lender to get a preapproval letter ready, so when you come across a good deal you are ready to strike on it. The agent also has people they generally recommend for you to use. Some agents help manage the rehab as well. 

Someone else also mentioned it, but figure out your buy box in the area (what property class... etc). There are some markets that fit your criteria, but they would be in C class locations. 

When investing in these areas make sure your property manager is solid. Vet them thoroughly and ask about their processes and their experience managing in the area. Since you are out of state, the property managers can give insight to the deal you are looking at as well. Make sure you talk to several property managers. 

Make sure you also do a proper inspection since this is your first. I'd recommend doing the sewer line inspection as well if the house is over 80 years old. Also would highly recommend learning a little bit about construction and what specs are generally used in rentals and when something needs to be replaced, so when you look at photos / video you have a general idea of what needs to be done. (many people overlook this). It will take a lot of the stress off if you know what you are getting yourself into --> cutting out the uncertainty.

Feel free to reach out if you have any other questions or want to chat.