Advice on out of state investing? How do you do it?

Question

I am interested in out of state investing because I live in the pacific northwest, where real estate is expensive.

How do you go about finding and buying out of state properties? Should I go with a turnkey provider, or should I just try to look up properties on zillow and trulia and then somehow either buy them remotely, or fly out to buy them? I don't think I want to do much rehab, I just want something that is ready to be rented or is already rented.

Also, what areas do you recommend to invest in? I don't want the properties to depreciate, but I also want a healthy cash flow.

I don't really have any friends or family in any other states, nor have I ever lived in any other states other than Oregon (and I cannot move either), so I'm trying to figure out my best strategy for investing.

Joseph Crunkilton · Answer

@Ellie Narie

Congrats on getting started. I myself live in the PNW and buy my rentals out of state. For my first deal I chose to purchase a turnkey from @Zach Lemaster over at Rent to Retirement. They specialize in high quality rentals in markets that maximize cash flow and appreciation. For turnkey, they're the best.

For my first investment I wanted something low risk with good returns. I wasn't comfortable putting all my savings at risk for some experience. The confidence I gained from closing on that first deal is invaluable. Since then I've started my own LLC and am doing more active investing.

Feel free to reach out if you have any questions.

Zach Lemaster · Answer

@Joseph Crunkilton Thank you for the shout out!

@Ellie Narie We've helped many investors just like yourself build a successful rental portfolio across numerous cash flow markets!

Please let me know if you have any questions on anything. I typically like to start with an initial phone call to discuss your investment goals/experiences, answer any questions you have, and tell you all about what our company has to offer. Please let me know if this is something you would like to schedule.

Also for your reference, here are some other forum discussions from investors that have worked with us in the past like Joseph. I'm sure you'll find this informative. Looking forward to hopefully connecting in the near future!

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experienceshttps://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/users/ZacharyCole/referenceshttps://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkeyhttps://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zachhttps://www.biggerpockets.com/users/ZacharyCole/references

Jenni Utz · Answer

#1 piece of advice is build your team of trusted all-stars. If you have that, you can invest anywhere. For example, I am a Property Manager in Maryland. I am very well connected with other property managers across the country. Any of my investors looking to invest in other areas, I have the perfect referral for them, wherever they decide to buy!

Check out my Blog, Who Needs to be on Your All-Star Team

https://www.biggerpockets.com/member-blogs/13287/90920-who-needs-to-be-on-your-all-star-real-estate-team

Suzy Sevier · Answer

@Ellie Narie Take plenty of time setting up and vetting your team in the market you are interested in. Once setup, ensure you have solid systems and processes in place that will make everything smooth from a distance. If you haven't read David Greene's book on Long Distance REI then I would recommend you read through that. He talks a lot about what you need to have in place when investing long distance. Best of luck!

AJ Shepard · Answer

The thought of investing in real estate is already a great start! As an investor myself in the NW, it is important to know what your investment goal is. When you are starting out I would suggest investing close to home and something that you can visit fairly easily.  Knowing how things work and what to expect is a very big deal so that you don't get taken advantage of if you don't, it makes you an easy target for someone to show really big numbers and underperform.  But if you know the ins and outs of real estate investing, the costs associated with managing a property, you talk and discuss intelligently with someone that is a lot farther away.  Just my thoughts.

Advice on out of state investing? How do you do it?

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