Buying, rehabbing, and renting from out of state

[Ishviyan D.]

Hello BP community. I am based in NY and given the poor cash flow around this area in general, I'm looking to invest out of state from beginning to end. This includes scouting for below market / reasonably valued properties, having a designated property manager and contractors conduct rehab of the property, and renting out the property. I understand this can be quite a challenge, and feel like the most critical aspect would be finding the right team on the ground - including an investor-focused RE agent, a skilled property manager, and reliable and honest contractors. If anyone has had experience being in such a situation, or knows of agent / PM / contractor contacts / references (or are yourself a RE / PM) who would be able to help pull off such an operation, or would be willing to partner with me in some capacity, please let me know. Your input would be greatly appreciated. I would like to focus on strong rental markets including but not limited to Indiapolis, KC, Birmingham, Dallas, Memphis. Thank you. 

[Ralph R.]

Sergei D. I do buy and hold out of state. I have been doing it for 10 years. I lived in the state I invest in for 45 years. Even knowing the state and areas where I invest I still hit a road block every once in a while. For this reason I would recommend checking every nook and cranny close to home first. Then if nothing turns up try a turnkey company to start with. This will allow you to network a bit, teach you how to be a remote landlord, and most important what qualitys the people on your team are going to need for you to be successful. THEN after you get your feet wet with the turn key property, try to find something to buy on your own. Scrap any rehab ideas until you really have the connections to pull it off from a distance. It's hard enough to watch over your PM from a distance much less a general contractor who is spending thousands of YOUR dollars on materials and labor. In any case bring your dollars as you are definitely going to Learn some expensive lessons. Oh yeah did I mention it takes twice as long to locate a property on your own when you are out of state? With inventory levels so low I had to start in a new city. It took a year to locate my last property due to low inventory sand higher prices. And for me the last offer I had accepted cost an $1800 dollar plane ticket to go see the property!! What ever you decide to do Good luck!!