1st out of state investment - focus on one area?

[Travis Raila]

I'm thinking about making my first real estate purchase, an out of state rental property, and wondering the best way to go about finding and analyzing a property.

Do people who are investing out of state typically pick one area, learn it well, and buy in that area? Or is it more common to do a more general search and focus on the math of a property?

I'm wondering if it's better to spend my time learning about one specific state/city/neighborhood or if that's less important.

[Brian Garlington]

I would figure out if you want to focus on cash flow or appreciation. Here in the Bay Area we are used to appreciation so it’s easy to get jaded.

Pick an area and focus on it. That’s what I’m doing. I’ve picked Cleveland, mainly for cash flow... and have been doing it slowly. There are plenty of people here in BP that have done 100’s of deals and/or own several hundred units. I own 2 here in the Bay Area and will be closing on my 6th (For a grand total of 8 units) unit in Cleveland next Friday. 

The 6 in Cleveland have all been acquired since November of last year. All are between the 2% and 3% rule and are in C neighborhoods.

Do your due diligence, fly out to the area if you’re not familiar with it. I did.... twice. Meet some PMs and agents while you’re there..., and literally “own” it.