Tips for building a team out-of-state
Central Valley, CA · Member since 2026 · 5 posts · 3 votes
Tips for building a team out-of-state
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votesYou're probably going to get folks who respond and say this is perfectly doable, and while I don't think it's impossible, I think it's exceptionally difficult. Just to be blunt - no one in a local market attempts to hold top deals for random out of state investors; the best ones get snapped up quickly. And no one is going to manage for you, like you would manage yourself.
If you're serious about this, you need to be able to travel to the market and do some of the tough work yourself IN PERSON setting up a network, getting to know a neighborhood, and looking at properties. And if that's not for you, then real estate investing may not be for you.
I don't mean for this to come off as discouraging but I just see no point in sugar coating how challenging the market is everywhere right now. If you'd like to connect I'd be happy to discuss further - I have nothing to sell and as this post probably makes obvious, I am not trying to talk anyone into anything.
14 Replies
- 1wNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
You're probably going to get folks who respond and say this is perfectly doable, and while I don't think it's impossible, I think it's exceptionally difficult. Just to be blunt - no one in a local market attempts to hold top deals for random out of state investors; the best ones get snapped up quickly. And no one is going to manage for you, like you would manage yourself.
If you're serious about this, you need to be able to travel to the market and do some of the tough work yourself IN PERSON setting up a network, getting to know a neighborhood, and looking at properties. And if that's not for you, then real estate investing may not be for you.
I don't mean for this to come off as discouraging but I just see no point in sugar coating how challenging the market is everywhere right now. If you'd like to connect I'd be happy to discuss further - I have nothing to sell and as this post probably makes obvious, I am not trying to talk anyone into anything.
- Central Valley, CA · Member since 2026 · 5 posts · 3 votes1w
I appreciate your candor. I do have plans to travel to that area to check out different properties that I might be interested in. I'd like to make that trip as productive as possible. It seems like one of the ways to do that might be to find an agent and a contractor prior to making the trip. I'd like to get some insight from an agent as far as what's available and where, and what might be a good fit for me. I'd also like to find a contractor to walk some properties with me in order to get a realistic starting point of what it's going to cost and what might be worth pulling the trigger on. Thank you for responding.
- 1wBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 711 votes
Consider the value of someone's time to show you around. It will help when asking tradesmen and agents to show you around that you are serious about a purchase. Have your lending in place, capital ready to deploy and an a healthy understating of where you want to go and areas you want to buy. As @Nicholas L. stated the best deals are kept for the best buyers. For people interested in my market here in Reno Tahoe I start with a virtual tour and showing them some examples of properties and the likely investment and returns for their strategy. If it still a fit I'll do some video tours. Once under contract and inspections are done then contractors are brought in for a more complete picture. Before asking people for their time and attention be sure the market and the specific area is the place that will help achieve your goals.
- 1wMike MoseePro MemberInvestor · Eagle Point, OR · Member since 2011 · 181 posts · 117 votes
Hi Stephanie
Either I'm tremendously lucky or know what to do. First, second,& last is to find the right property manager to advise you on purchases BEFORE you pull the trigger. We've been investing in Memphis since 2011 on the strong advice of our property manager. I've never seen any of the more than 20 doors before buying on their recomendations. I've traveled to Memphis years after & while they're not perfect (perfect doesn't exist)the returns have been very good.
The right property management should already have repair/rehab team in place. We've used the BRRR strategy many times successfully.
Best,
Mike
- Investor · Pacific Northwest · Member since 2026 · 511 posts · 289 votes1w
Stephanie, the “one-stop shop” is usually the wrong thing to look for. What you actually want is one operating layer across multiple specialists.
For an out-of-state BRRRR, I’d build the stack in this order: deal sourcing → boots-on-the-ground inspection → GC/sub network → lender/refi relationship → property management. The important part is that none of those people operate in isolation. The acquisition assumptions need to survive the rehab bid, the rehab needs to support the ARV, and the finished product needs to hit the rent number the PM is underwriting.
We’ve been doing work in Memphis around exactly this problem—connecting operators, contractors, properties, and deal flow so the investor isn’t trying to manage five disconnected relationships from another state.
The opportunity is real. The danger is buying the property first and trying to assemble the machine afterward.
If you’re seriously looking at Memphis, feel free to reach out. I’m happy to compare notes on how we’re structuring it.
- 1wDivin KanyamaBusiness MemberAccountant · Seattle, WA · Member since 2025 · 149 posts · 42 votes
@Stephanie Ramirez , I've looked at out-of-state deals too, and from one investor to another, your idea is definitely possible—but the team can make or break the BRRRR. A one-stop shop sounds great because they can find the property, handle the rehab, and manage it afterward. Just remember that convenience usually has a cost, whether it shows up in the purchase price, rehab markup, or management fees. If too much margin is taken along the way, there may not be much equity or cash flow left for you.
If I were investing remotely in Memphis, I’d build the team one person at a time instead of relying completely on one company. I’d want an investor-friendly agent or wholesaler who understands the neighborhoods, a licensed contractor who gives detailed scopes and milestone-based payment schedules, and a property manager who is willing to review the deal before I buy. I’d also speak with other out-of-state investors, check references, and look at completed projects—not just online reviews.
I would still run the numbers independently. I’d verify the after-repair value and rent with separate sources, include financing, taxes, insurance, management, maintenance, vacancy, and reserves, and make sure the refinance still works if the appraisal or rent comes in lower than expected. A full-service provider can absolutely be part of your team—I just wouldn’t let the same person selling me the deal be the only person telling me it’s a good one.
- 1wStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
I am always wary of people who express interest in investing in distant markets, particularly when they live in a more expensive market and select one from a list of the least expensive. Layer on a desire to use the BRRRR method, and the immediate question is whether the market was selected based on its fundamentals or simply because it is what the investor can afford and what they perceive from what they read online is a good BRRRR market.
The next question is who the “team” is actually made up of. Can these low-cost properties support the use of experienced, licensed and insured contractors who do not need someone constantly looking over their shoulder? There often is not enough money in these smaller transactions to pay the compensation necessary to attract more qualified contractors and other transaction participants. That's the part that gets missed when the focus is on a spreadsheet and the simple questions of how and why are not a leading part of the decision making.
- 1wArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 904 votes
Quote from @Stephanie Ramirez:
I am from California and am interested in doing some out-of-state real estate investment. I've been looking around at properties in Memphis. I would like to do something like a BRRRR strategy. In order to do that I know I'm going to need a good team. I would really appreciate some tips on how to build a good one. I'm looking for someone to source deals, contractors/subcontractors, and property managers. Is there a one stop shop that meets all these needs that would allow me to build some equity in the property with the renovation and still cash flow in the end or is that just in my dreams? All tips are appreciated.
It's definitely not a dream, but the team matters just as much as the deal. For a BRRRR, I'd get your lender, contractor, PM, and deal source lined up before closing so you know the numbers are realistic. Memphis can work, but I'd also compare it with Midwest markets like Ohio, where the lower entry prices can make the BRRRR math easier.
- 1wAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Good work on getting started @Stephanie Ramirez
Happy to hop on a call with you. I've got 30+ rental units in the Columbus market that I bought over the last 3 years and work with OOS investors from Cali helping them do the same. Happy to connect you with my personal contractors and banks that I use for financing.Feel free to dm me.
ReafCo | Ahmed Group 55 Reviews - 1wJordan RayBusiness MemberReal Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
Welcome to BiggerPockets! You’re actually describing exactly how a lot of my out-of-state investor clients operate here in Memphis, and no, the idea of having a team that can help you source, renovate, stabilize, and manage the property isn't just a dream. I personally prefer building a team of specialists rather than relying on one company to control every piece of the transaction because it creates more checks and balances. Start with an investor-friendly agent who actually owns rental properties and understands BRRRR, then have a strong property manager, reliable general contractor, local hard money lender, and DSCR/refinance lender all working toward the same goal. Memphis is extremely neighborhood-driven, so before buying I'd also start practicing by analyzing properties, ARVs, realistic rents, rehab costs, and market trends and learning the overall layout of Memphis so you understand what you're buying rather than relying completely on someone else's opinion. The financing side is another reason BRRRR works well here—the local hard money lender I use on my own purchases offers 100% financing on the purchase and 100% of the rehab up to their ARV limits, and many investors can get into deals with around $10,000 out of pocket before refinancing into long-term financing. The goal is to buy correctly, force equity through the renovation, stabilize the property at a rent that supports the refinance, and still have cash flow afterward; Memphis can absolutely provide that combination along with appreciation when you buy in the right locations. The biggest thing I’d recommend is starting those relationships now rather than waiting until you find a property, because when the right deal appears you want your agent, property manager, general contractor, hard money lender, and refinance lender already in place and comfortable working together. Feel free to reach out, talk soon!
Jordan Ray - eXp Realty5110 Reviews - Real Estate Broker · Member since 2024 · 125 posts · 60 votes6d
@Stephanie Ramirez One-stop shops exist, but the fee stack is the real filter. If acquire + rehab markup + PM all take a cut, your recycle and cash flow can both disappear even when the sticker price looked cheap. Better stack is still specialist lanes with one accountable local operator: street-real ARV, written rehab scope with photo/video draws, and PM underwriting the rent before you buy. Memphis can work; so can Alabama if you stay out of foundation/HVAC traps under ~$200K. Are you optimizing for pull capital out on refi, or park it for cash flow after 8-10% PM + reserves?
- 6dAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
Stephanie, for an out-of-state BRRRR, I'd build the team before the deal, not after you're already under contract.
The biggest risk remotely is usually not finding the property. It’s whether you have people on the ground who can verify the rehab scope, control the budget, manage contractors, get the property leased, and help you refinance without everything depending on you flying in.
I'd want a strong investor-friendly agent or deal source, a contractor who is comfortable giving detailed scopes and progress updates, a property manager who knows the rental side, a lender who understands BRRRR refinances, and an inspector or third party who can verify completed work before large draws go out.
For the deal itself, I'd work backward from the refinance. Conservative ARV, realistic post-rehab rent, rehab contingency, carrying costs, refinance LTV, and what happens if the appraisal comes in lower than expected should all be modeled before you buy.
I've personally done 20 BRRRRs, including a method I call "BRRRR on steroids," where you essentially structure the deal so you can act more like your own lender. There are definitely ways to make the strategy work, but the capital structure and exit need to be planned very carefully.
From the tax side, keep every rehab cost broken out by component rather than one big “renovation” number. Once the property is placed in service as a rental, depreciation begins, and cost segregation may also be worth evaluating depending on the property and whether the losses are actually usable.
So no, building equity through rehab and still ending with cash flow is not just a dream. I’d just make sure the purchase, rehab, rent, refinance, and tax plan all work together before closing.
Feel free to DM me, I'd be happy to send over a few resources that might help you pressure-test your first out-of-state BRRRR.
INVESTOR FRIENDLY CPA®5241 Reviews - 1dJosh HandlerPro MemberContractor · Memphis, TN · Member since 2026 · 53 posts · 58 votes
Stephanie, I need to disclose something before answering, because I'm exactly the thing you're asking whether exists. I run a construction company in Memphis that does investor rehabs, rent-ready turns and ongoing maintenance, we sell deals as well as renovate them, and I own around 70 rentals here myself. So read all of this knowing I'm describing my own business model, and I'll try to give you the version that includes what's wrong with it.
YES IT EXISTS. HERE'S THE ACTUAL TRADE.
What you gain is accountability more than convenience. Coordinating an agent, a contractor, a lender and a manager from California means that when something goes wrong, every one of them can truthfully say it was somebody else's part. The scope gets written by one person, priced by a second, executed by a third and inherited by a fourth, and nobody owns the whole outcome. With one accountable party that excuse stops existing.
What you give up is the independent check, and that's the part people selling this model don't say out loud. When the same company sources the deal, prices the renovation and then manages it, there is nobody in the chain whose job it is to tell you the deal is bad. Those four roles normally create a little friction against each other, and integration removes the friction along with the finger-pointing.
The specific thing to watch for: an integrated shop can move margin between the purchase price and the rehab price. If the rehab number looks tight, check whether the acquisition price absorbed it. Ask for both numbers separately and benchmark each one independently against an agent and a contractor who aren't involved. Anyone running an honest version of this hands those over without flinching. If the request makes somebody uncomfortable, that's your answer.
NICHOLAS IS RIGHT, AND I'D FRAME IT A BIT DIFFERENTLY
He's correct that nobody holds their best deals for a random out-of-state buyer. But the reason isn't cynicism, it's that a local buyer closes faster, with fewer contingencies, and doesn't need three weeks to look at photos. That's a disadvantage you can actually fix. Be pre-approved, be decisive, have your inspection process defined before you're under contract. You still won't see the very best deals, but you'll stop being last in line, and that's most of the gap.
THE PART OF YOUR QUESTION NOBODY ANSWERED
You asked whether you can build equity through the renovation and still cash flow, or whether that's a dream. The honest Memphis answer is that you mostly get one or the other at a given price point, and the vintage of the house decides which.
Forced-equity room lives in the older, cheaper stock, which is also where the yields are highest and where the execution risk is highest. Pre-1965 houses here carry cast iron drain lines, galvanized supply, original panels, and pier-and-beam foundations on clay that moves. The upside is real and so is the variance.
The newer stock, post-1990 in Cordova, Bartlett, Hickory Hill, outer Raleigh and parts of Southaven, has far fewer surprises and much less room to create equity, because there's less wrong with it to fix. You pay more per door and you sleep better.
So not a dream, but not free either. You're choosing which risk to own. For a first BRRRR run from California I'd lean toward fewer unknowns and less equity, get one full cycle done, and then decide whether you want the harder version.
ONE THING SPECIFIC TO BRRRR FROM OUT OF STATE
These die at the refinance appraisal far more often than at the rehab. Get your refi lender's expected ARV and rent in writing before you write the scope, then build the scope backward from that number. Renovating to a standard nobody will appraise is the most common expensive mistake I see out-of-state buyers make, and one conversation in the right order prevents it.
QUESTIONS TO ASK ANY ONE-STOP SHOP, MINE INCLUDED
Who held title during the renovation on your last few projects, and can I verify it in the deed history? If they owned the house through the work, they ate every overrun and the pricing reflects real cost. If they never took title, the renovation risk was never theirs.
How many doors do you own in this market versus manage?
Will you give me the acquisition number and the renovation number separately?
And name a job that went badly and tell me what it cost you. Anybody with real volume has one, and the answer tells you more than the references will.
Happy to answer Memphis questions whether or not any of it ever involves us, including which ZIPs I'd avoid despite the numbers looking good.
- Real Estate Investor · Memphis, TN · Member since 2016 · 402 posts · 129 votes20h
@Stephanie Ramirez If you are serious about giving memphis a closer look, I would suggest Memphis Investors Group(MiG). There are several investors from California in our Weekly zoom calls. Every Friday at 12 noon central time. Check out the calendar on the website at MemphisInvestorGroup.com.
I would offer that Memphis has a wide range of Investors investing in the market on their own terms. Coming to MiG you would be able to hear what people are doing, whats working and whats isnt. Investing from afar can be a nerve racking endeavor. With the right team the work is made light. Come check us out if you are interested.
The One Stop Shop could be the answer to your prayers, but be careful with who you chose. There are some major players mid range operations and smaller operations. However I have spoken with several investors over the last year that have been taken. Networking, and vetting out the options available is your best bet. That may be a one stop shop or it may be a PM company that you trust, then a realtor/wholesaler and a title company. Then a lender, contractor and repair team (plumber, electrician, carpenter) contact. Having a network can help find these individuals. But to do it alone from 2000 miles away, No Bueno.
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