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Updated over 8 years ago on . Most recent reply
Buying out of state
I was planning on buying investment properties out of state, I currently live in Southern California. I have been looking In Ohio, Arizona and Nevada. What are somethings I should look out for when buying out of state? I want to make sure I know what I could be getting myself into. Anything will help!
Most Popular Reply
I used to live in So Cal and did my first investments out of state before buying an owner occupied property in HI. Purchasing outside of So Cal is going to be cheaper than any LA area. The first things I looked at was: no state tax, developing areas (especially where Home Depot, Best Buy, Lowe's, Michael's) strip centers were being built. I looked at the rental market, if it was close to military bases, colleges, or big companies were moving out of CA to a cheaper state to run their business. I ran all the numbers to make sure I could cover at least 3-6 months of PITI (principal, interest, taxes, insurance), just in case it didn't get rented out as fast as I wanted it to. I asked for property manager referrals and expect to pay around 10% prop mgmt fee. Location is key and the rental market is important. Hope this helps...