Out of State investing experiences

[Guy Yoes]

I have seen a lot of posts lately on OOS investing in states like Oklahoma, Kansas, Arkansas. I have my views, but would like to hear from others who have opted to invest in areas that look more lucrative.

How did you get started.

What issues did you encounter?

Any advice to others interested in OOS?

[George Pauley]

Been out of state for 4-5 years now.  I'm in Memphis, Davenport and Kansas City.  

I look at things like how many properties are they managing, how many years have they been managing, customer referals, BBB ratings etc.  It's always a good idea to ask here on the forums, chances are very high that someone here is already using a prospective manager. 

Then I fly out and spend a few hours with them.  There's a lot to be said for face time with someone your going to do business with.  Flakes seem to have a way of outing themselves in a 2-3 hour conversation.  In particular, I want to get a feel that the PM understands that a big part of their job is balancing my desire for maximum profit with keeping the customer (the renter) happy.  If a renter wants a repair or concessions I need a PM who can tell me whether this is customary and reasonable for the area, or not.  We'll usually chat about things like average turnover cost and time, average tenant duration, etc.  I like PMs who under-promise and over-deliver.