Is visiting an out of state market actually worth it before buying?
I'm looking at buying a rental home out of state since the bay area has a higher entry price. My main goal is cash flow.
I can research rents, taxes, crime, landlord laws, and listings online, but I wonder how much I’d miss by not actually spending a few days driving around the area. I've had success in San Francisco buying in areas that had planned development, I feel like this is something you only experience when you are there and talking to people.
For those investing out of state:
Did you visit before buying your first property?
If so, was the trip worth it?
Did seeing the neighborhoods in person, or meeting agents/property managers, change your decision?
Most Popular Reply
- Flipper/Rehabber
- Pittsburgh
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yes, 100% worth it to visit before buying something that costs hundreds of thousands of dollars. with that said - i always get nervous when a California investor's goal is "cash flow"... because there is no "cash flow" whatsoever in the short term on LTRs right now. none. not in any market. returns on non-value add LTRs have gone to zero in the short term. think about how long it would take just to cover closing costs if you're netting $32 a month above all expenses.
this is what tends to happen when folks chase cash flow in "cheap" OOS markets:
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
Failed BRR in Memphis TN
A Cautionary Tale About a Property Manager in Cinncinatti
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i hope this is helpful