All Forum Posts by: Ash Murthy

I'm wondering how does the incentives of the property manager align with that of the house owner?

Getting started with out of state investing

I live in Silicon Valley and I'm looking to invest out of state due to the high property prices in this area. 

I'd greatly appreciate your thoughts on  a few different approaches to getting started with out of state investing. 

Sole proprietorship: Just buy a property I think is a good deal out of state and hire a property manager to manage it locally. 
Pro:
Complete control of property
con:
Too risky due to lack of knowledge about local market. Also making multiple trips  out of state to view properties could be expensive.

Join forces with a local investor:
Pro: Local knowledge, on the ground boots
Con: decision making, sharing payments if the house is cash flow negative, and risk of partnership going awry.
I think this approach might be particularly helpful for BRRR investing.

Hire a local mentor

Have paid consultations with a local expert. 
Pro: Complete control of property
Con: Mentor is not invested in the deal.
Nevertheless I think this approach is the balance between the earlier two.

Would greatly appreciate your feedback on these and any other approaches to out of state investing.