First-time opportunities for commercial real estate out of state?

[Strom Lee]

I'm just getting started researching types of real estate, and commercial real estate seems to be the most appealing to me. At least, more appealing than residential multiplexes and SFR. My only real estate experience is buying my own home in the SF Bay Area.

Does anyone have advice for a first-time investor for commercial real estate? In particular, is there a specific type of real estate that can be managed efficiently (semi-active or passive) out of state, as I'll likely have to be out of CA due to the prices.

I was originally thinking 5+ multifamily, but then I saw other opportunities related to mobile homes, retail space, and even storage space. The goal would be to buy and hold for the first time and get some cash flow. Then possibly trade up to bigger and better once I'm more comfortable with the ins and outs of running the investment. Am I getting in over my head?

Thank you in advance!

[Theo Hicks]

Based on your goal to continue to grow an out-of-state business, you'll be able to do so faster buy acquiring value-add real estate deals. Typically, this is an active strategy, but you can make it more passive by building out the right team. Find a few brokers to send you deals. Find a solid property management company to manage your deals, making sure you do weekly calls to get updates. You might want to consider getting a mentor as well to help you with the gray areas, as well as underwriting and due diligence.