Start out investing with buy and hold out of area?

[Bryon Kane]

Hello BP, I’m Bryon Kane, I am just starting out in real estate investing. Based in West Palm Beach FL, but looking to invest in other parts of Florida as well as Midwest. Wondering how smart of an idea it is to start out investment career with buy and holds out of my area/state? Or is it a as long as due diligence is done and a solid team built, its not a huge deal type thing? Any advice as to where/how to begin to take action would be greatly appreciated.

[Brian Adzadi]

@Bryon Kane

Unless your area is too expensive or competitive to invest there, personally, I would prefer to acquire rentals in my own backyard. I am a strong believer in baby-steps. Get rentals in your area, where you can easily drive to it and manage the property yourself. Once you go through the school of hard knocks with your tenants, repairmen and  contractors, no one can ever take you for a sucker. When you start becoming more confident as a landlord then you can start branching out to other states. Investing in your area is the frying pan and investing out of state is the fire. Which one you think is easier to handle?

[Bryon Kane]

@Brian Adzadi I see your logic. Thank you for the advice. I'm guessing you're not a huge fan of utilizing a property management company?

[Caleb Heimsoth]

Bryon Kane I bought out of state for my first rental. I now own several rentals in two states (Ohio and TN). Some of these I’ve bought sight unseen.

Your dollar goes a lot further in these markets then where I live and likely where you live. Would you rather need 30-40k per rental or 10-15k? I’d prefer 10-15.

[Brian Adzadi]

@Bryon Kane

I don't mind a property management company. They are useful when you have a large portfolio, not very handy or have out of state portfolios. However, if you CAN manage your properties yourself, do it. 1) You get hands on experience 2) You save money 3) You get to chime in the forums about how much of a dipsh*t your tenant/s are.

If you really intend to expand your portfolio in the future, a PM company will be you best friend, but in the mean time, why not see what they go through on an everyday basis yourself before you formulate a contract with them?

[Bryon Kane]

@Caleb Heimsoth @Brian Adzadi

Love the perspectives guys. Definitely things to think about. 

I think what makes me a little nervous is the fact my direct market area is pretty expensive. I may try to find a balance of doing a rental investment out of my area a little north where its cheaper generally speaking,  but close enough to manage the property(ies) myself at least for a while to get hands on experience.

Caleb I am absolutely interested in out of state rentals though!

[Steve Kontos]

@Bryon Kane

I have been investing out of state for 11 years now and I can tell you it is very attainable.  I live in New York so I wasn't even going to attempt the ridiculous prices here.  Truth be told, I haven't looked back since I started.  I would much rather invest in areas that make a lot more sense in terms of rate of return.