Whats the farthest away you invest? KC

[Ryan Sajdera]

Hey BP!

I was just wondering how much experience you have investing in large cities that you don't live in. I am a new investor looking to invest in the Kansas City area, but I don't know too much about the market or locations. I've been there a few times, but I'm not the most familiar. What do you guys do about finding properties, setting up PM's, making repairs, and getting them rented when you live far away? Thanks for the help!

Ryan

[Bill Gulley]

A word of wisdom from experience;

While there are some turn key operators that may be good, fair, reasonable and an investor to profit, there are many who don't.

Due diligence can't be overstated here, look to actions, performance, time in business, full disclosures and fee structures if they manage. 

For this reason, I don't and won't invest more than an hour away, that gives me about a dozen counties around me to deal in as an owner. Notes are different, with boots on the ground I can manage surrounding states, but I'm a finance guy, not ban owner. 

Saying "get a local team you can trust" can be had initially, it's like a partnership and most partnerships fail at some point. Not only do you manage the investment but you need to manage people as well. You can easily be set on the back burner if you're not a prime investor, they will always put out fires where there bread is buttered, attention goes first toward the dollars, then to the change. 

Prices are high in KC, so are rents, for a decent property that isn't in a war zone, IMO there are areas not to move into as an investor.

You might do well too, by getting out of the KC market, say like Clinton, concentrate on a portfolio and just do weekly or monthly visits, just have your emergency guy on call. 

I'm not a fan of turn key properties because there are so many ways to lose control and there are skilled scammers out there too. But, it works for some. Good luck and Happy New Year!  :)