Pros/cons buying investment real estate out of town

[Randon B.]

I live Austin Texas and its a sellers market here right now. Most everything is bought cash and above the asking price. I would like to look to other markets to invest in Texas. I'm just wondering what are my limitations?

I understand that I would need to out source for property management or repairs for property with tenants. But are there any other pros/cons to a strategy like this?

[Lee Smith]

I am in Indianapolis, IN market. I get about 2-3 calls a week from out of state investors... I have seen more horror stories than I care to admit...

Find a market you like, and then check trulia/zillow for property managers that have feedback. Also do some google searches for property managers.. Then ask for references, and check the references. First deal or two, get an appraisal done from someone other than your property manager. Ask for comps from your property manager and then go to a realtor or two and offer to pay for comps from them. Ask for video from the properties you are looking at. I like videos because the guy taking the video has to talk and you get to see how saavy he/she is.

Don't be afraid to hop on a jet and go see your properties every so often.. I work with investors who have never been to Indiana, and I do my best to keep them in the loop, but nothing beats coming out and seeing what you are buying.