Out of State Multifamiliy Rental Tips on ?

[Account Closed]

Hi everyone,

Are there tips that investors who purchase out-of-state MF rentals can give to someone pursuing the same types of deals? Tips and suggestions on anything from organizing your ground team, red flags to look for in virtual 3D tours, or setting up business foundation.

- If you were starting over, what would you do differently and what would you do the same?

- A piece of advice you can to give to anyone no matter where they are in their investing career?

- Green and Red flags to look out for in a given situation?

I would love to hear what the community has to say.

Thanks!

[Tyler Peitzmeier]

Hey Sahaj,

I have been investing out-of-state for the past 5 years and I love out-of-state investing and since I live in California, I see no need to have to invest locally. Here are some things I have learned since I have started:

1. Build an amazing team of professionals locally to help you. From agents, managers and attorneys, they can ensure your best interest are taken care of.

2. Ensure there is checks and balances on your team. If you hire a contractor, make sure your property managers are there to ensure the work is done efficiently and right

3. Proper book-keeping. There is nothing worse than have the numbers all off and you have to fly out to reconcile everything (I know from experience). Make sure your property managers and book keepers are communicating and ensure everything is correct and account for

4. Build solid trust. I do not want to get a call every time there is a maintenance call or a light bulb needs to be changed out. I trust that task up to $500 is going to be done right. If there's anything over $500 they need to give me 3 quotes to choose from. 

In my opinion, investing from a distant is actually easier for me. The reason is because I do not know much about paint colors, or repairs. I get to rely on my team of experts to make sure it gets done right. The makes the process much more efficient for me.

Hope this helps!

Tyler