Buying Buy and Hold Properties Out of State

[Taylor Horowitz]

I live in the Denver Market and have a buy and hold property in Boulder.  I am looking to grow my portfolio but having trouble wrapping my head around the metrics of making the cash flow work in the Denver or even Front Range, Colorado Markets.  

I am looking at a few properties in other states but am concerned about the challenges of not being present to keep an eye on the property or being local in case something happens.  Is this really as big of a concern as I am making it?  Or if the numbers work? Is it worth the risk to put the management into someone else's hands?

The barrier to entry is lower outside of my own market, but I am viewing it as more risky. 

[Micki M.]

@Taylor Horowitz a lot of people in Colorado share your thinking. Why buy one rental for $200k or $300k when you can pick up a handful somewhere else that will cashflow better.  Your concerns are valid and you should come up with good answers to them before buying anything.  Savvy out of state investors start with an area where they have resources (ie they grew up in Milwaukee and have family who could run over to a property in a pinch). Others go and visit places where there are established and reputable turnkey operators.  @Jay Hinrichs has started a service called Turnkey Reviews which helps people vet those operations.

There are tons of people on BP who can give you good advice or make good connections, so listen to your concerns but don't let fear get in your way!