Long distance cash flow investing from Las Vegas

[Harry Means]

Hey everyone.  My name is Harry, I live in Las Vegas, and I am looking to invest in rentals in the midwest or south for cash flow.  I currently own my primary residence and also a 3/2 sfr rental an hour outside of Las Vegas that is free and clear, that I have owned/self managed for 8 years.  I am in the planning stage of the process and trying to figure out the details so I have a viable plan.  Here is where I am at so far, please chime in with obvious issues that I am not seeing, opinions, tips, etc.    

Type:

Preferably multifamily 

Price Point/Financing:

I would like to be under $40k, I have the cash to close on deals of this size.  I wanted to do the Fannie Mae delayed financing, but with it being under $50k, that may be more difficult.  If I go $50k+, I would need to tap the equity in my rental.  Either way I want to be at 1% for net cash flow and use the brrrr method to expand.  I would like to find a local bank who works with investors in whatever location I decide on.  

Condition:

Due to the distance, cosmetic to light rehabs.  I would like to get the systems and contacts in place to take on larger projects, but initially I need to stick to light rehabs.  

Location: (Needs to be somewhat close to airport if outside of major metro area)

Cleveland, OH

Kansas City, MO

Indianapolis, IN

Milwaukee, WI 

Memphis, TN

Atlanta, GA  

So that is where I am at as of now, any tips or suggestions are appreciated.  Thanks

[Alexander Felice]

@Harry Means I do something similar.

I buy SFR out of state and live in Las Vegas, at a similar price point.

I know you said you want multifamily but I think you'll find it difficult to buy quality MF units at 50K all in. I buy in the NC area and use the BRRRR method with value add. I like Section 8 tenants, but even with that I wouldn't go D-class. Too much hassle, and the maintenance runs up. IMO it's better to pay a little more now and run a low overhead operation.

What I would do is analyze 20-30 deals in each of your proposed areas and find the ones that seem like they will work best for you. Then I would start team building. Your team is the single most important factor in your success when investing long distance. Start finding rehab teams and property managers immediately so you can build long term relationships.

also, look into delayed financing. Talk to a lender before you close on a house and get the details. You should be able to close immediately after tenants are in place for 100% of HUD. This will allow you to move quickly onto the next one.