Investing in Dallas Rental Property from Austin

[Dustin Maxey]

Hi all, 

I'm new to the site and in full on learning mode right now, so please forgive me if I ask any rudimentary questions. I've bought several houses of my own in the past, but never invested. I'm thinking of moving some of my stock market investments to real estate... to diversify, and because it sounds more fun and tangible. While reading "The Book on Rental Property Investing" I became interested in the potential of renting properties with a good price to rent ratio. That being said, there are zero in Austin (where I live) that meet that criteria. 

In spending a few hours on Zillow, I've found a few neighborhoods in Dallas (and some in San Antonio) that meet that criteria. Namely, Cedar Crest and South Dallas / Fair Park. At face (Zillow) value the numbers seem to work. There are several 3 bed / 2 bath, 1k - 1500 sqft houses, selling for 60 - 70k. There are comp rentals going for 900 - 1.3k. Before crunching the numbers more or even thinking of making an offer, I have a few concerns:  

• I'm in Austin, that means building a network of contractors, agents, etc. in Dallas that I don't have
• I'm busy at work, and am not a full time investor, is it possible to be "hands-off" and still be successful on a first rental like the one I'm considering? 
• Whatever I buy will need a little work. It's tough managing contractors doing work on my own house where I live. Is it possible (best practices) for finding managing, and ensuring quality work of contractors from afar? 
• Any other show stoppers or other considerations I should be making? 

Thanks sharing your time and experience with a newbie everyone! 

[Kenneth McKeown]

@Dustin Maxey if you're finding 3/2's for 60-70k - I would be very weary. I wholesaled a deal in south Dallas last year for around 90k and it was a complete gut job. 

In regards to your questions - yes you can be an out of city or state investor and still be successful. You just need a great team in place. This will be your biggest hurdle - but you are only in Austin so driving up for a potential property under contract isn't impossible either. 

The last thing is - if you purchase any of these properties, do the work, and try to get it rented out... who do you think will be renting properties where the average property value is 50-70k? Just food for thought.