How Far Away do You Buy?

Question

I'm looking into buying a duplex-fourplex to start out so I can house hack my way up the investor market.  The current market I am in is too small to have any property that large.  There is currently 1 duplex for sale, its a town of 30,000 and its A LOT of SFH.

Though there is a market about an hour out in a college town that has a lot more multi properties available.  How far away do you consider properties when looking?  This can be for any property not just multi-unit properties.

Bogdan Cirlig · Answer

In my experience, you need to understand 1000% the remote market you're buying in. Investors assume local knowledge by the fact they're local and you never question how come you know so much about your market, but stepping outside of your local area feels like the little birdie who fell from the nest.

My advice is to identify great property management companies/ re agents. You should hire one anyway to manage them remotely for you. Ask and check for references from other Landlords. I've had a bad share of stories with some PM companies so I ended up hiring RE Agents who also have their own investments and local connection with contractors to handle repairs.The 8-10% you pay them is nothing compared to the local knowledge and presence you get.

If you want to manage it yourself, yeah, 1 hr drive sounds like max. Tenants may call you for what nots and you will have to drive. at 2 hr round trip, times $$/hr your time, you understand how much you lose by visiting the property too often.

Jonathan Wilks · Answer

Personally for me it is based on my familiarity with the area, and if i'm willing to go to the location in the middle of the night.  So i generally stay in a 20 mile radius of where i live.