Remote REI Tips and Guides

[Jay Yoo]

Just wanted to see if you can share your tips and challenges of remote real estate investment.

Living in Seattle WA, no longer cash flowing any properties with conventional 20% down from my own analysis. I have a small condo and Cash on cash ROI is 3%.

I would rather look into Texas and Tennessee where more likely investors friendly.

Can you share your tips and how to find network for property management and contractor?

Should I work with realtor at the remote market or a realtor local here?

General ideas to get to the first deals would be great. Thank you.

[Michael Haas]

Real estate licenses are state-specific, so you definitely want to work with a Realtor in the state where you're investing, regardless of the state where you're a resident. Of course, a Seattle Realtor can refer you to a colleague in one of those markets, but be aware that the Realtor will possibly be pocketing a referral fee from the agent they're connecting you with. 

A good friend of mine with 6 properties in Tacoma, WA, just bought their 7th rental and 1st property OOS in Tennessee. He grew up in Tennessee, and his parents lived right next door to the subject property, but OOS investing is messy so he still ended up $30,000 over budget and 4 months behind schedule on the rehab. Its a good rental now but it was a huge point of stress in his life for the past 6 months. I'd be cautious when investing OOS, especially if you're new to REI... lots of sharks in the water.

You can definitely get 10-15% cash on cash in and around Seattle. Your 3% cash-on-cash for the condo isn't that unusual... condos are low maintenance investments but definitely not known for good cash flow of cash-on-cash, especially when putting 20% down.

Always happy to talk about investing locally if you're interested as well - we've been able to find good success personally so its definitely possible. Hit me up in messages if you'd like to chat about it though :). 

Best of luck whichever road you take!