Long distance investing

[Arun Dharan]

I live in San Francisco and wanting to invest in a multi family home in another state since everything in California is too expensive. What are some good states to look into? Also what is the best tips for someone starting in real estate investing?

[Satyam Mistry]

@Arun Dharan Educate yourself as much as you can on long distance real estate investing through books, podcasts, BP, Youtube, blogs, etc. There is so much information out there to learn what to do and not to do. Start looking into an area that you have some ties to and would not mind checking in on as this is your first venture into real estate investing it is beneficial to meet with some contacts such as agents, inspectors, property managers, etc. 

One of the most important aspects of long distance investing is having systems in place and having people to manage those systems. It takes time to build this. If you know someone that is in a more affordable market that has experience and may be interested in partnering with you that could be an option as well. Remember the importance of having reserves in place when investing in real estate and including 10-20% monthly expense for maintenance/CAPEX.

Firstly identify what strategy, returns, and type of investment you are looking for. 

Jumping into a long distance multi family investment as your first real estate investment is not something that I would strongly suggest, but that being said it can be done. Start targeting a few areas that you may be interested in and start calling agents and explain to them what you are looking for and see what is out there. Think about who is going to manage the property and ask questions of property management companies such as what their processes are, fees, general vacancy rates, other properties they manage so you can get references, etc. Also start talking to lenders in the area so you know what you are approved for in terms of financing before potentially finding a deal. Best wishes!