Looking to Invest Out of State
New to Real Estate · VT / NH · Member since 2024 · 1 post · 5 votes
Looking to Invest Out of State
Most Popular Reply
Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes
7moQuote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
Personally I actually like investing a few hours away. It forces you to build systems and good local contacts instead of trying to do everything yourself. If you have a reliable handyman, a couple contractors, and a solid screening process, managing from 2–3 hours away is very doable. I’d worry less about the distance and more about whether the numbers and tenant base make sense. If Manchester deals keep getting too competitive, it may just mean you need to widen the search a bit until you find a market where the math works better.
10 Replies
- Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes7mo
Quote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
Personally I actually like investing a few hours away. It forces you to build systems and good local contacts instead of trying to do everything yourself. If you have a reliable handyman, a couple contractors, and a solid screening process, managing from 2–3 hours away is very doable. I’d worry less about the distance and more about whether the numbers and tenant base make sense. If Manchester deals keep getting too competitive, it may just mean you need to widen the search a bit until you find a market where the math works better.
- Real Estate Agent · Manchester, NH · Member since 2015 · 160 posts · 148 votes7mo
Hi Kristin,
I personally think 2-3 hours away is the ideal distance, if choosing out of state investing for your strategy. You are far enough away that you naturally create systems and you a close enough if you need to go check something out you can relatively easily.
I am a real estate agent and investor in the Manchester area, and I personally love the market long term. I would maybe expand your search to include, Nashua and Concord as you will be able to get a better feel for the Southern NH market as a whole. Feel free to reach out with any questions!
- 7moMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 499 posts · 553 votesManaging a property 2.5-3 hours away shouldn't be too difficult. It's not perfect for if you have to drive there yourself, but it's close enough where you can still self manage without the help of a property manager.
Quote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
If you're finding it tough to find a property, I wouldn't get discouraged. Happens all the time. Might want to start looking at wholesalers or someone who can source deals for you off-market.
Reafco - Mike Paolucci 512 Reviews - 7moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 942 votes
Quote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
Being 2–3 hours away is actually very manageable, especially if you already have experience owning and managing rentals. The key is having a reliable local team and being realistic about the condition of the property you’re buying. Markets like Manchester can be competitive, which is why a lot of investors eventually expand their search to other areas where prices are lower and deals are easier to find. Some even look into Midwest markets where duplexes and small multifamily properties are more affordable and can still cash flow well, making the distance less of an issue if you have good property management in place.
- 6moBianca BarcelosBusiness MemberNH · Member since 2026 · 88 posts · 45 votes
Kristen - great questions! I think from that far away you'd need a Property Management company but you can customize what services they offer you. Some properties need some work, yes, but, as a local Manchester, NH agent, there are also a lot on the market right now that are pretty turn-key. Would love to chat more about this if you're interested in connecting. Good luck in your search and investing journey!
Bianca Barcelos, Real Estate55 Reviews - 6moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
A common issue, so Copy & Paste info below:
You’re ALWAYS better off investing locally, where it’s easier to:
- Learn the market
- Network to find deals
- Network to find contractors
- Be more hands-on
- Driveby property to keep tabs on it
- Network to find a decent Property Management Company (PMC)
Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
- Many of them don't know/care what Class the properties are, so they're incompetent.
- Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
For example, Metro Detroit has 132 cities and the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying to make better investing decisions.
Horror Stories from those that did NOT Understand What they were Buying:
https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain
https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss
https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs
https://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years
Logical Property Management4.9459 Reviews - 6moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 942 votes
Quote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
Managing a property from 2–3 hours away is totally doable when you’ve already got some experience under your belt, but Manchester can definitely feel like a grind, deals need heavy work or disappear fast, which isn’t ideal for a first multi. If you want something a bit more beginner-friendly, the Midwest markets offer cleaner numbers, easier renovations, and strong property management infrastructure, which makes remote ownership way less stressful. Whatever direction you go, pick an area where you can lock in a reliable PM and avoid being forced into heavy rehab right out of the gate. - 4moRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
One thing I've noticed with out-of-state investing is that the distance usually becomes less important than the quality of the local team and the market fundamentals. If Manchester keeps feeling overly competitive, it may be worth comparing neighboring markets not just on purchase price, but on rent-to-price ratios, inventory levels, and how quickly duplexes are actually trading. What specifically keeps bringing you back to Manchester versus some of the other Southern New Hampshire markets?
Section 8 Launch52 Reviews - 4moAmit PatelBusiness MemberProperty Manager · Bartlett, IL · Member since 2025 · 156 posts · 63 votes
Managing from 2.5–3 hours away is very doable, especially with the multi-unit experience you already have. The most important step is building a strong local team before you buy. Interview property managers in the area now so you have someone reliable handling emergencies, tenants, and day-to-day issues.
Manchester offers solid multi-family opportunities, but the market moves fast and many properties need significant work. If you are open to it, also look at Concord and Nashua. Concord in particular often gives first-time multi-unit buyers a slower pace, more inventory, and better cash flow numbers with less competition.
Focus on turnkey or very light value-add properties at first. Heavy rehabs from a distance add unnecessary stress. Run your numbers with property management fees of 8–10% plus solid reserves included.
You are already ahead with your current experience. Get the right team in place and remote ownership becomes much more manageable.
Casanomy Property Management564 Reviews - 4moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Kristen Mahri:
Hello!
How difficult would it be to manage a duplex or multi-family property from 2.5 - 3 hours away?
I reside in VT but I am interested in investing in property in Manchester, NH and the Seacoast area of NH. I'm not a complete newbie as I do own and manage a rental condo and manage 95% of a multi-unit building (partial ownership).
I've primarily been searching in Manchester but properties need a lot more work than I can put into them to get them going or they get snatched up quickly. Would anyone be able to provide any advice? Keep searching in Manchester or are there other areas that would be better for someone starting out with a multi-unit property?
Any suggestions / advice is appreciated.
Thank you!
You will find that you will make up excuses NOT to visit the property unless absolutely necessary.
This MAY lead to longer than necessary RentReady between tenants.
MAY also lead to you letting tenant requested maintenance take longer to address, which may lead to them not renewing.
Same issue with nonpayments.
As @Dominic Mazzarella mentions, you will need systems to avoid all this.
Logical Property Management4.9459 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.