Going out of state & out of my comfort zone

[Stephen Scire]

Hello BF friends, I am very "itchy" to invest out of state , nearby ( Rhode Island). I live in the Boston area, have 2 multi's & have a full time job ( self-employed) . So , Boston to Rhode Island , would be my travel (2 1/4 hours) .....don't mind periodically traveling to keep checking the property, in fact I prefer to do that. I am also very much favor of college towns . Is there any advice that I should be aware of when making this leap forward. Thank you for this forum, many informative conversations & hospitable members. Eager to her your input ! Note, I'm looking for the cash flow . Not flipping

[Anthony Thompson]

@Stephen Scire I'm a big fan of not looking where everyone else is looking, especially in this market where a lot of prices are being bid up. So I'd recommend considering looking outside the usual places most others are looking.

For example, a lot of people from Boston are looking to buy properties now in Pawtucket since it's closest to Boston and close to the Attleboro T station. That's great, except for the competition.

It's a little farther away, but I think a lot fewer Boston people are trying to buy properties in Smithfield, Scituate, Johnston or Coventry (just for a few examples).

I'd also recommend attending local real estate groups that are active in the area you're thinking about investing in, for example in RI I know there's one group that meets monthly in Warwick.

Attend a group like that and make it a goal to meet (best) or talk to on the phone (less desirable but still good) investors who are local to the areas you're looking to invest in (not out of state as you'll be). Take a few out to coffee if you're able to.

You want to start building relationships with people in that area, because they will be helpful connections for finding decent contractors, handymen, attorneys, etc. And also because they can give you local knowledge about which areas are OK and which are maybe best avoided.

There's only so much you can see from Google Maps street view. Driving through an area and talking to neighbors is priceless, but asking other local real estate investors who own things in that area is also priceless.

I'd say, investing out of state has a lot to do with your team on the ground, so you really want to do some research and put some effort into picking good people for your team.

I hope this helps, and let us know if you have more specific questions of course!