How do you go about investing out of state?

[Michael Stanley Nino]

Hello! I'm a Engineer working full time in New York and I'm interested of how people go about investing out of state in a state that has very low or no cash flow. (I have 40k in downpayment prepared for my first investment) How do I find a hot market? I have my sights set in Florida and Ohio now. I have family in Florida that's in the flipping buisness but we aren't to close to them and people seem to be raving over Ohio as of late. Should I be going for 200k multi family properties or try and shoot for a 50k property? I'm more so interested in buying and holding right now in multifamily housing. I want to get my feet wet and make a deal already but I'm not sure if im rushing into it. I have started off reading Rich Dad Poor Dad and it was a fantastic read and now I'm going to buy Davird Greenes book of out of state investing.

[Tyler Kastelberg]

@Michael Stanley Nino

Do yourself a favor and invest passively alongside an experienced investor who can put you in a much larger investment (100+ units). @Omar Khan is a reputable sponsor and active investor on BP. Consider contacting him to see what he is up to.

Bigger properties lead to:

1) Less tenant risk

2) Better economies of scale (less cost/unit compared to single family or small multifamily)

3) Better returns (see 1 and 2)