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Updated almost 6 years ago on . Most recent reply
Buying rental real estate in other markets/out of state
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@Jason V. We work with a lot of out of state investors and the biggest mistake I see people make is buying the wrong class of property in the wrong neighborhoods. Too often, people spend a huge amount of time researching the perfect market and not enough time understanding the micro markets within their market. Often times they someone will convince them that a neighborhood is one class when it's something entirely different. You can overcome any mistake except buying in a bad area. Even as an out of state investor, it's not that hard to get to know an area. Get familiar with the median prices and rents in your market. If median rents are say $1000 and you see areas renting for $700 that tells you something. Do your due diligence and get familiar with the neighborhoods. Next, make sure you have an excellent property manager that you can trust and rely on. If you have a good asset, in a good area and you have someone you can trust managing that asset, you can do very well in the right markets. I agree totally with @Aaron K. that short term rentals is not good for out of state. They are very management intensive and that can be your achilles heel.