Out of state investors - what market did you choose and why?

[Travis Raila]

I've been talking to a few people about this recently, but I would love to poll a larger group.

For those of you who have invested out of state - which market did you decide to invest in, and why did you choose that market?

[Xavier Randall]

@Travis Raila Great question..here's my 2 cents:

1. For me...I live in SoCal but started investing in the Southeast because it's where I'm from and know the lay of the land and for the lower price point and the fact that these are municipals that are more landlord friendly (No rent control for one thing)

2. My over 9 years of experience as an REO Asset Manager is an added bonus because I've know how to manage rehabbing properties throughout the country. I know price points when it comes to materials and vetting contractors and professional services

3. Remember…you don’t have to KILL it. Focus on making a solid investment for the long game. I bought a 4 plex in Macon, GA in good area for $72K. I put $40K into it. My total rents are $2400/month. My total monthly expensed are right at $1000/month. Worst case scenario is that I can have 2 vacancies and still not be upside down. Don’t be greedy. The top rents for a similar property in my market is up to $700/month. But I stay around $625/month and I get the same tenants. Don’t let $625/month fool you. When you dealing in Secondary markets in other parts of the country you will get hardworking people who can afford it and want a nice place to live. $50 a month is huge to them. My water bill on the entire building averages out to be $50-$55 a month.

4. Pay your professionals. I have a great agent and a great property manager (and they have great relationships with local contractors) and I gladly pay them their commissions and sometimes even send them a cookie basket or gift card for dinner. Once they see you value them…they will go above and beyond and the next thing you know you’re getting the inside track on properties you wouldn’t have known about.

5. DUE DILIGENCE! DUE DILIGENCE! DUE DILIGENCE! Not just on the property. Research the population and make sure people are coming in and not leaving. Average income. Local work force. Again…realize that outside of CA, NY and a few other major markets, the rest of the country are middle of the road hardworking people.

6. Don’t be afraid to make AGGRESSIVE offers! Say that 3 times in the mirror. Ask for it all. They will either say no or counter. Remember…you’re the investor building a business. Don’t feel bad about walking away either.