Newbie questions on out-of-state investing

[Sam Mukunda]

Hi all,

I'm currently in bay area, looking into out of state rental investments. I'm a total newbie at it.

Want to understand best possible route to take in this field.

1. What are the top states/cities that are hot right now for making a purchase ? Im looking at SFH/MFH under 300K.

2. Do you recommend buying tenant pre-occupied properties whether SFH/MFH?

3. What is the typical cost associated with out of state investments ? What are some of the hidden costs ? 

4. What is the usual cost associated if I were to hire a property manager to manage the house ? 

5. What is the expected ROI after deducting property management costs ?

6. Are roofstack /rentToRetirement reliable sources ?

Appreciate your thoughts. Thanks in advance.

[Patrick Drury]

@Sam Mukunda
1. What are the top states/cities that are hot right now for making a purchase ? Im looking at SFH/MFH under 300K.
Columbus OH and Cleveland OH

2. Do you recommend buying tenant pre-occupied properties whether SFH/MFH?
Yes if the rents are good and are market rate, but if they are half of market rent those tenants are going to need to go. Just make sure you invest somewhere that is landlord friendly 

3. What is the typical cost associated with out of state investments ? What are some of the hidden costs ?
None that I can think of

4. What is the usual cost associated if I were to hire a property manager to manage the house ?
8-10% is common in Ohio and one month's rent for leasing a unit

5. What is the expected ROI after deducting property management costs ?
Depends on where you are buying, how much value you are adding to the property, the PM you use, and the loan you use. 
6. Are roofstack /rentToRetirement reliable sources ?
They are probably great for people that have no time and want a passive investment similar to a syndication. The more hands-off the less the return you are going to get.