New out of state investors mistakes

[Ryan Nguyen]

I own a few rental properties here locally by I’m thinking of buying some more in another state. My question is what are some of the mistakes that newbies make when investing out of states?

[Frank Wong]

Hi Ryan,

Like many here have said not knowing the area has to be the biggest mistake.  Everyone will give different ratings on the area from A-F but everyone's idea on those will vary so you need to go there and decide for yourself. 

Finding the right agent is probably the hardest thing because most agents don't have the level of skill or time to look in depth into a property and come up with the correct analysis. When I purchase out of state I find the deal myself I analyze and if I like it. I will call my agent to show my family member.  From there I will decide if I will buy it or not. In my case I have actual boots on the ground I trust.  This makes a huge difference.

In your case, you need to develop the skills to analyze a deal and decide if you want your agent to look at it further.  You will need to come up with a list of questions you want your agent to answer and ask your agent for specific photos and video.  Makes it much easier for the agent to get you the answers. 

Another mistake is thinking its easy to do this out of state. It's very very hard.  You have to trust a lot of people with your money.   

If it's your first deal choose a property that needs interior rehab or something minor.  You don't want a big project.