drawbacks of investing in a out of state rental as first property

[Account Closed]

Hello,

in many areas i have research, show prices are much more doable than where i am located (north jersey) while i keep searching for my duplex to house hack here, would it be wise to buy an SF or duplex in a market like Orlando or Jacksonville or even NC where job growth and property taxes are low and numbers work out better for cash flow instead of holding cash?

i read many books and wanted to get the first-hand experience from people who are doing this now or have done, what recommendation do you have? i want to be able to use the funds i have now, the main goal is to cash flow an 8% cocr.

[Jonathan Greene]

You won't get the experience you want by starting out-of-state, but it can certainly be a better value than Northern NJ now, but there are sneaky towns here where there are options, it just depends on how far out you can go. It also depends on your level of comfort and confidence and knowledge with renovating to BRRRR because if you are brand new, doing an OOS reno to BRRRR will cost you way more than you think. A lot of us in Northern NJ have set up in Philly for investing because the prices are solid and it is drivable easily from here.