New investor looking to start out of state

[Dan Riley]

Hi everyone, I'm a first time investor looking to invest in long-term out-of-state rentals. I've been wanting to get involved for years and have been spending time researching/reading in the interim. The idea of being a first time investor and out of state has certainly given me lots of pause, however, if I don't go out of state, it won't happen (I live in the Bay Area).

Life is busy with a newborn and a long working hours so my time is strapped which presents another obstacle to getting started.

Target down payment is < $70k which puts me in the $250k - $350k range. Is this a reasonable amount to get started? Any areas you'd recommend looking as first time out of state investor? Any fantastic property managers that've made everything worthwhile?

Would love to connect with and learn from others who have been on a similar journey!

Appreciate the community help and support. 

[Nicholas L.]

@Dan Riley

well... given all the constraints you posted, unless something changes or you change something, your options are limited.

it looks like you posted 3 years ago asking about turnkey properties.  with limited time, and you believing / saying you "can't" invest locally... that might be your primary option.  but... with prices and rates the way they are, I would strongly caution you.

say you use the available capital you have to buy a turnkey in the midwest, and you find a great team and great tenants, and you net $200-300 a month.  so what?  at that point you're done until you save up enough for your next one, right?

i know this is heresy on a real estate forum, but... with $70K, you can earn $3500 a year nearly risk free in a savings account.  it's not clear to me, given your current life situation, that buying a property thousands of miles away just to net less than that makes a ton of sense. there are plenty of threads on BP, if you look for them, about people who bought that wonderful midwest property only to get immediately crushed by Capex. yes, the risk of this happening is way less with a reputable turnkey provider, but it's never 0.

if you had more time and didn't have a newborn. i'd give different advice =)

feel free to respond here or DM me if you want to discuss more.  i know this isn't what you want to hear.  it's just a tough market right now.