Experience in Out-of-State Investments

[JoJo Tucker]

Hello Everyone,

I am beginning my REI adventure with out-of-state rentals; primarily because I simply cannot afford buying a house where I live (Sonoma Co., CA). I have read several books on the matter ("Long-Distance Real Estate Investing" by David Greene, "The Millionaire Real Estate Investor" by Gary Keller, etc.), however I would like to open a discussion to fellow BP members on their experiences.

Currently my objective has been to study the markets and demographics of different areas and find one that suits me best. I had recently honed in on Houston, TX and have now been building a contact list of investor-friendly realtors I can interview. 

Generally, what has your experiences been investing out-of-state?

What steps do you take to mitigate risks?

What are a few key things you look for in a realtor?

Any general advice you would like to give to me would be greatly appreciated.

Thank you so much for your time!

Best,

JoJo Tucker

[Kelly DeWinter]

Generally, what has your experiences been investing out-of-state?
. negative

What steps do you take to mitigate risks?
. hire a property manager and have 2 others in database - just in case
. be willing to hire a licenced general contractor
. have an exit strategy in place in case things don't work out

What are a few key things you look for in a realtor?
. one who knows how to work with investors or has flipped properties

Any general advice you would like to give to me would be greatly appreciated.
. expect everything to take 2X as long
. expect multiple trips until all of your ducks are in a row.