New Investor looking out of state, any advice?

[Cody Robert]

Hello everyone! I am fairly new to BP and looking for some advice. I currently live in Boston and finished a buy and live in flip here where I will be refinancing and renting out in the next year or so. This is a long term appreciation/rental play but looking for a  different strategy now that I have some experience. I am currently looking for another property to add to the portfolio that is out of state that is turn key and will cash flow a bit. I know the mid west is hot, and I was thinking either Missouri, or Alabama. Trying to find a turn key property under 100k isn't the easiest, but some exist. Any recommendations on best cities to look? My main concerns are the hidden issues on these properties like plumbing/sewer/any big expense I wouldn't expect coming. I also am looking to build a team to hunt and manage the property as well as I am out of state. Any advice is appreciated. Thank you!!

[Nicholas L.]

@Cody Robert

hello Cody.  congrats on your first project.  it seems like a lot of investors who chase midwest 'cash flow' get absolutely crushed by rough tenant turnovers, high repair costs, high dependencies on people they don't know and deferred maintenance.  and, sub-100K properties are going to put you in challenging neighborhoods... as a low price is actually reflective of low demand.  

i do think a certain type of investor can make this work, by having an incredible, hyperlocal, hands-on ground game - doing their own maintenance and repairs, self-managing, dealing with tenants in-person, maintaining a network of local trades and local resources available to them, and strong knowledge of individual streets and neighborhoods.  but, most OOS investors simply can't replicate that in any way.

so, why not stay within a couple hours of home, where you can be hands-on?  even if the price point is higher?

recent posts of recent crushings:

Turnkey Nightmare: Property Manager Ignored My Warning About a Missing A/C…

Nightmare with my property manager - advice needed!

Feedback Needed: $8.8k Turnover Quote for 2BR Duplex (Half)

Out-of-State Landlord Nightmare: 4 Months No Rent, Cleveland Escrow Battle

more posts of previous crushings:

Failed BRR in Memphis TN

A Cautionary Tale About a Property Manager in Cinncinatti

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/432/topics/1231840-sell...

https://www.biggerpockets.com/forums/311/topics/840134-memph...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

hope this helps

happy to dialogue further