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Anastasia Walia
  • Investor
  • San Francisco
29
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9
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Is visiting an out of state market actually worth it before buying?

Anastasia Walia
  • Investor
  • San Francisco
Posted

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?

  • Anastasia Walia
  • [email protected]
  • Most Popular Reply

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    Nicholas L.
    #2 Out of State Investing Contributor
    • Flipper/Rehabber
    • Pittsburgh
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    Nicholas L.
    #2 Out of State Investing Contributor
    • Flipper/Rehabber
    • Pittsburgh
    Replied

    @Anastasia Walia

    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

    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...

    i hope this is helpful

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