Investing out of area/state

[Glenn Mayo]

So, I have the disadvantage of living in one of, if not the, hottest real estate markets in the country, here in DFW Texas. There are a lot of pros and cons to it, but I keep running across people who don't even live in Texas, let alone in this market, who are investing here. And that got me wondering: if I was going to invest outside my area, A) what would be the best way to determine which markets were the best to invest in, and B) without being able to simply hop a flight at will and go check out properties, how would I know if what I'm buying is a good buy? As an example, I've saved a couple outside investors some HUGE headaches when I found out they were looking at properties in the Stop 6 area of Fort Worth. Because I live in this city, I know that buying in that area is like buying in South Central LA; you could do it, because property values there are SO low, but you'll regret it, especially if you're a buy and hold investor. So, let's say that, somehow, I determine that, I don't know, Oklahoma City, for example, is an up and coming market, and I decide I want in on that. But I can't actually go to OKC to look for properties or close, etc. HOW would I do it, and do it well? I know some of you on here are investing out of state, sight unseen, and doing very well. How do you do it? How do you figure out which markets to enter, where in that market to invest, and then find truly good buys in those areas and go through the process all the way through closing and property management, all without ever setting foot in the area or laying eyes on the property? Learning to do this is vital for me, since I am really being forced out of my own market by the fact that it's so hot that everyone and their brother, from all over the world, is buying here. Comprehensive help would be wonderful. Thanks!