All Forum Posts by: Clint Thezan

I'd have to say that I don't necessarily agree with this post entirely, as well.  While investing out ot town does present with some different challenges like finding a good agent, good property managers, learning the area that you are investing in,  etc., I've found out of town investing to be similar, or even better at times than investing in town.  I do think it is important to visit the locations where investing prior to investing to get a pulse on the market to better understand the landscape.  To me, the failures of out of town investing is with unengaged investors... which can also apply to in-town investors.

Many of the same challenges and expenses apply to both types of investing.  If a person doesn't want to manage properties directly, then there is always going to be an expense of a property manager and the challenge of finding a good one.  It may be slighlty more challenging to meet those people if out to town and it may take some trial and errror to find them, but it you do it can be very lucrative.

The other key is finding a good agent.  In Kansas City Metro as you mention, there are a lot of suburbia areas.  But prices can change significantly by a crossing over one street or city block, by school district.... or by crossing over state line with KC's unique setup of the metro being divided down the middle between MO and KS.  If you dont have an agent that knows those elements and can help you find the right fit to your investing needs, it can be detrimental.  

Where I agree with you is that I have seen investors come into the midwest, or maybe its better to say lower cost markets, and buy blindly because the cost of entry can appear to be attractive when compared to the coasts.  But then they overspend by not gaining the knowledge of the market where they are investing, failing to learn local rental rates for long and short term rentals, learn where short term rentals are allowed, local rennovation costs, etc.

So while I agree that out of town investing can come with some some challenges, I dont agree that success is the exception.   The key is to establish processes that limit those pitfalls.