First Deal In Real Estate- Out of State Investing

[Grant Smith]

Hey BP community,

I am considering out of state investing for my first deal as I currently live in the Bay Area and am struggling to combat the exorbitant housing prices in the greater area in which I live. I am highly considering the Dallas area, yet through hours of research through listening to the podcast, I have become aware of the precautions that should be taken with this mode of RE investing. My best friend from high school who I still communicate with on a weekly basis goes to school in Dallas currently, so I am beginning to voice my interest in the area and accumulate knowledge of the general status of Dallas as a city. I recently listened to a podcast wherein an out of state investor referenced google maps in order to judge the vitality of a given neighborhood, but I have qualms with putting my (and my partner's) money behind a virtual litmus test of a neighborhood. I also question the legitimacy of sites such as neighborhoodscout in their altruism as you are required to purchase a subscription for access to their information. Do any of you invest out of state, and if so, did you have a previous connection to the area that enabled you to confidently put your money down on a property? Any information on Dallas, or any input from investors from Dallas whether you are an out of state investor or live in the Dallas area would be appreciated, I would love to start a thread regarding this topic in the BP community.

Namely, I am struggling to gather what I can confidently claim as reputable data on property management companies, and every real estate agent I call understandably pitches me on the influx of quality tenants in their respective area emphasizes the beauty of Dallas and their listed properties. How do I trust the information given by these essential pillars of out of state investing and remove the veneer of these representatives seeking their commission or monthly dues allotted to PM companies and effectively gather the data I need to move forward?

[Andrew Herrig]

@Grant Smith I live and invest in Dallas, so not out of state. But I think you either need to get on a plane and get familiar with the city yourself, or have boots on the ground here that you trust. 

In general, I would be very wary of buying a property with an ARV less than $150k or so as an out of state investor.

Sounds like you are at the very beginning stages of your research. I would find some other out of state investors who have owned property in Dallas for awhile and get their opinions and recommendations.