Out of state

[Saad Handoo]

Hi there folks-

I'm looking to make my proverbial first investment and from listening to the podcast and reading some of the seasoned investor posts, it looks like multi family is the way I want to go. The only problem is that I reside in Chicafo- a market where a good majority of the steals are gone (my budget is ideally paying no more than 120K for a four plex). 

I wanted to go to other areas of the country - Winston Salem is appealing, but I'm not sure how many problems that will create with property management. Ultimately I have no desire to be involved in anything but cutting checks and I'll happily give 6% of my Gross Revenue to a property manager. 

Is buying out of state on a multi family with a fully outsourced property management approach a bad idea?

[Brie Schmidt]

@Saad Handoo

 Property managers take about 10% of gross rents.  Your issue is going to be that you will only have 1 property with the PM so you are the low man on the totem pole.  I buy properties all the time from out of state investors who are failing and the #1 reason is they are not a priority to their PM.