Investing out of my area as a beginner?

[Phil T.]

Hi all! I'm saving for my first rental property and have a question I was hoping to get some input on. Rentals are pretty expensive in my area (Washington State), so I was considering buying out of the area. I've heard of and done a little bit of research on Roofstock, and they seem to have a pretty good model, but I'm concerned with how much it might cost to have the property managed out of my area where I have no access to it to prep it for new tenants, take care of small maintenance/repair issues myself, etc. Would I be getting in over my head investing out of state or am I overthinking things? Should I just save a little more money/wait for the market to correct and buy close to home? Any input is appreciated! Thanks! Phil

[Andrew Johnson]

Phil T. For what it's worth, certain things in out-of-state get better with scale. I still visit my properties twice a year. Those plane tickets, hotels, rental cars, etc. aren't free. Nor were the flights out when I bought my unit. If you are like many hear you *might* be one of those "$100 per door cash-flow is my magic number." I can all but guarantee that $1200 per year will evaporate in two flights out to check up on your property. Now if you have 20+ units that cost is suddenly spread across a much greater pool (and larger cash-flow) so it doesn't sting. So keep in mind that even when it you have a great PM (I like mine, I trust mine, etc.) there are still costs to consider.