Criteria in selecting a city for out of state investing

[Kevin Seiler]

Greetings all!  I purchased my first OOS rental property in Lawrence, KS last year.  The reasons I did so was because of affordability, it is a university town and my daughter lived there and could be my boots on the ground person.  My goal was to purchase a second property this year but the market has changed some and it may not be wise to invest in the area.  KU built additional student housing that has impacted the rental market.  The university is also experiencing a decline in enrollment.  Some nice properties have come on the market but the numbers, for me, just don't make it.  Many marginal properties are reducing their asking price in order to sell them.

So, I am beginning to research other cities that make sense to purchase my next property.  It was always my intention to limit my properties to two in the Lawrence area unless something phenomenal presented itself.  Anyway, I would like to hear what other OOS investors look for when moving into another market.

Thanks,

Kevin