Investing out of state

[Ryan Hoehn]

Whats up guys, i've always thought about investing in another state. 

Currently have no investments but looking to change that as soon as i can. 

Question i have is do you think its a solid move to invest in another state where you dont live but have a friend there that does? Its in a state where alot of people vacation and are moving to.

I was thinking about a condo in a hotel beachfront or even possibly a single family home. My friend currently lives there but rents out from his cousin who has a family so the thought i had if it were single family, buy it so he has a place of his own and pays me each month or find renters elsewhere or airbnb the beachfront condo?

Would that be a good step to take or would you suggest making my first investment a place closer to home?

Thanks

[Greg Scott]

Let's separate out the ideas.

Good ideas

 - Investing near where you live, if you've done your homework

 - Investing out of state, if you've done your homework

 - Buying a SF as an airbnb, assuming you choose wisely

Bad ideas

 - Investing somewhere just because you have a friend living there

 - Buying a condo as a rental (you don't control many of the expenses)

 - Hiring a friend to manage your business

Terrible idea

 - Renting to friends or family which almost never works out well