Buying Rental Properties out of State

[Kevin Longeuay]

Hey all!

I live in San Diego, new to REI, and want to find buy and hold properties. All signs so far have lead me to markets outside of California and therefore out of reasonable driving distance. I'm ok with that but wanted to see how people have made this work. I would be hiring a property manager but I'm curious as to how much out of state investors have to rely on them. A few questions for those that buy out of state:

1. Do you visit all of your properties before placing an offer or is this handled by your local agent and/or property manager? I assume you would communicate your strategy with them and rely on them to provide valuable and honest feedback of potential properties in terms of rental desirability and required repairs.

2. How often do you or should you visit your property after it has been acquired? I've heard horror stories of properties that are mis-managed and investors only finding this out by driving by the property. Do you perhaps have someone local (friend/family) that you use to periodically check up on your property?

3. How do you best educate yourself on the market you plan to invest in? Some items I've read about include researching the tenant market (i.e., demographics, occupations, locations of large employers, desired features of rental properties), the housing market (are prices increasing/decreasing, how desireable is the neighborhood), and city/state laws and ordinances. Am I over-thinking it or is there a better approach? 

Thanks guys!

[Yvonne Dupree]

I am bias since I live in Baltimore and I also would like to provide you with a chart that one of Bigger Pocket colleagues provided

https://bp-v-newproduction.s3.amazonaws.com/upload...

1. Baltimore is the 4th largest “commuter shed” in the country. Over 900,000 people commute into Baltimore every day from Baltimore area suburbs. And over 200,000 people every day commute in Baltimore from Washington, DC and Virginia.
2. Baltimore ranks #18 in the top 25 rental markets in the entire nation. However Baltimore is the only city in the top 25 markets where the rental rate of return is over 20%
3. Baltimore has one of the most stable economies in the United States, median household income averages $70,000 which ranks #4 in the U.S.
4. Baltimore’s millenial population has grown 16% in the last 5 years
5. Baltimore has over 1,000 miles of natural shoreline making it one of the most beautiful places to live
6. Baltimore gets over 2,000 hours of sunshine a year, rivalling Florida as the “sunshine state”
7. Over 2.7 million people reside in the region making it the 20th largest metro in the country
8. High opportunity and relatively low home prices make Baltimore one of the hottest Real Estate markets in the nation
9. Properties can be purchased in the $70 - $85K range and rents range from $1300 - $1600 a month for 3 - 4 bedroom homes.