Looking to Make Long Distance Investment in Raleigh/Durham

[Kieran Lenahan]

I live in New Jersey and am looking to make my first investment in a rental property in the Raleigh/Durham, North Carolina area. I have some questions, since this would be my first deal and it's long distance. There is currently one townhouse I'm looking at that appears to be turnkey. It looks like it would cashflow about $200 a month to start and cash on cash return hovers above 10-12% in the first few years of ownership. I'll be talking to the selling agent later today to get more details on history of repairs, typical tenants, HOA fees, etc.

- Does anyone have any advice about finding a real estate agent in a long distance market other than researching and using reviews online?

- What do people recommend when it comes to seeing a property in person vs. having a real estate agent visit the property for you? Ideally, I'd trust my agent to give me feedback based on my investment goals and what kind of rehab work I'm willing to do.

- In terms of financing, do I have to go with a bank or lender in Raleigh/Durham? Or should I work with local NJ lenders?

- What else is important that should I be considering?

Any help is much appreciated!

[Nathan Gesner]

Look in the bookstore for "Long Distance Real Estate Investing" by David Greene. He spells out exactly how to do it and it's a pretty simple system but can take some time to set up.

You want a REALTOR to help you find deals but most REALTORS can't tell you if it's a good investment or how much it would rent for. You want a Property Manager to look at the property from an investment/Landlord point of view and confirm whether the REALTOR actually found you a deal. You want a contractor to look at it and confirm condition, what work needs to be done, and associated costs. And you need a lender to finance it.

I highly recommend the book.