First Time Investment Property Buyer
Hello BP Community,
I've managed to save up around $90,000 to invest in my first rental property. I live in Miami, FL and don't want to buy here since prices are incredibly high.
I want to invest in growing communities, not exactly sure if I want to buy an AirBnb as my first out-of-state investment or 3-6 month short term, or a 1 year+ property. Also not exactly sure which state I'd want to invest in.
Questions for you who do this successfully:
1. What has been your favorite state to invest in? (some of my own research: Georgia, SC, NC, OH, TN)
2. What is your favorite renting strategy in that state? (Airbnb, short term rental, 1year+)
3. I know I have more questions but I've drawn a blank... I'm sure with your responses, I will generate more questions.
Thank you for all the help! Gd bless
Note: I'm a licensed Realtor + MLO in Florida.
Most Popular Reply
- Real Estate Broker
- Cody, WY
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Randall is correct that PM can be expensive.
Do you know what else is expensive? Amateur landlord mistakes!
I am just a few months away from publishing my DIY Landlord book. In the book, I share the story of a woman who lost over $40,000 in five years through rookie mistakes. After I took over management, I stopped the bleeding and increased her income dramatically. I do a better job of protecting her property, income, time, and sanity. When I met her, she was working full-time at Walmart to make ends meet, and she had severe health issues from the stress. After two years of my management, she was able to quit her job entirely and live off the investment income. Her health improved. She has her time back and travels constantly to visit her family. I have dozens of examples.
You can get a better return in another market and use the additional income to cover the expenses of property management. Read "Long-Distance Real Estate Investing" by David Greene. Listen to Dave Meyers of BiggerPockets because he crunches the numbers and lists the states best suited for your type of investment. Learn how to to screen and select a quality property manager that won't cheat you or mismanage your property (they do exist).
- Nathan Gesner
