Building a Rental Portfolio Out of State

[Jagpreet Singh]

Hello Bigger Pockets Community,

I’ve posted on here before regarding this same topic but due to personal matters, I had to delay the process. However, I am here now and ready to make a move!

Objective: To purchase out of state rental property(ies). I live In NYC and the home prices here are insane. Buying out of state will allow me to have a good price point entry and be able to see decent returns. Specifically, the type of location I’m looking into is up and coming cities, younger population, strong work force, good rental market, and in solid areas. Not looking for gamble purchases, yet. Maybe one day I can get into flipping houses but that is down the line.

Financials: I have about 45k to put down, very good credit. Ideally, I would rather have a renovated property so I can literally just buy and put on the market to rent and create passive income. I would have to hire a rental management company to take care of the place since I live in NY, such as rent collection, evictions, repairs, etc. Once the property is bought, I will be trying to visit the city more often and check up on my investments.

Timeline: Not rushing this but ideally I’d like to have an investment within the year, preferably 6 months.

Can anyone guide me along the process on how I can get started in going after this goal? First step, second step, etc. Last time I posted, I seemed to get a lot of agents from various cities. I’m open to hearing any tips that fit my goals listed above.

Thanks

[David K.]

@Jagpreet Singh, I have invested into 5 properties in 2017, doing exactly what you are looking to do.

It is easier than you think - find a reliable TK provider and off you go.

The only caveat to remember is that once you exhausted your 45K, what is next? 45K will be enough for down-payments for 2 single-fam houses. Expect each of the houses to generate about $150-200 per month for you if all goes well. 

What is your long-term strategy? If you are looking to "park" extra 45k somewhere to generate some extra passive income and that is all then it is easy and ok, but if you want to continue building and growing then you need to consider this..

Good Luck!