Advice on investing in small multi family homes out of state

[Victoria Mick]

Hi Bigger Pockets, Just starting out here, took a leap and upgraded to "pro" today! I'm a mom of two younger kids. I work part time with my husband at his heating business. I worked as an agent doing rentals in NYC for about a year, 2013-14 but transitioned to working for a mid sized management company handling their in house leasing also in Manhattan for 5.5 years. I want to start investing in real estate as a way to make passive income and eventually achieve financial freedom for myself and my family. My goal is to purchase my first small multi family home within the next year. However given I live in New York (Nassau County) anything in the city and around my vicinity is way higher than I can afford (I have about 30-40k for a downpayment to work with) and so I'm considering starting out investing out of state. Though I have a lot of reservations buying out of state where I'm unfamiliar and do not have contacts. Has anyone started out investing out of their home town? Most of what I've been reading says to start out close to home so you can be hands on and learn which is what I would prefer. Any advice is appreciated! 

[Ryan Cleary]

Hey Victoria! I actually live in Long Beach and your right. This market sucks lol. Though I own a SFR in Long Beach, I also tried to finding a way to invest on Long Island for about a year. The numbers just make no sense here! I had always heard of long distance investing and thought I wasn't ready for it. Until one day I decided to research a market in Florida I was familiar with. Less then two weeks later I was in contract for an amazing cash flowing property.

I am three months into that deal and so far everything is running smooth. As of right now I am also looking in Ohio since I have a similar budget.  I am working with a great agent in Cleveland which my be a good (yet challenging) market to start in!  I only say challenging because there are places in Cleveland that are worth investing in and there are places that are not and its all about just doing basic research.  

If you have 30-40k and want a cash-flowing duplex with 10+ cash on cash returns then look into West Cleveland!

I will say one thing as well.  When people find out you invest in other states they are usually fascinated.  And as long as you build up proper cash reserves I would not have any hesitation about investing outside of your hometown!

Let me know if you have any more questions, would love to help!