My Out of State Investing Mistakes

[Matthew Masoud]

So back in 2018, I decided to purchase property out of state since I couldn't afford the property in SoCal. I chose Ohio as a market and started looking for property.

The first deal I found was a 3-unit for $100k. Market Rents were $600-$800/month/unit. Monthly expenses were around $1,000 with everything.

I thought I was purchasing a cash-flowing machine. 

Turns out, the property was in a D-class area. Break-ins, loitering drug addicts, and inherited awful tenants were my everyday headache.

Before I knew it, I had to fire my property manager and move from Los Angeles to Ohio to figure out what to do with this property. I started doing repairs myself to save costs and slowly over 6 months got all the bad tenants out and got 3 solid tenants in all at $800/month.

In exactly 12 months I sold the property for $190k. Even though I lost my hairline, I gained so much knowledge. 

That knowledge took me from 3 units to 51 in less than 2 years.

We are all so worried about making mistakes but the mistakes I made with that 3-unit is what got me to where I am now. A lack of action is WAY worse for your success than mistakes.