Should I Buy My First Rental Property Out-of-State If I'm Unable to Scout the Area?

[Diana Teng]

Hi all,

I think my question above is pretty direct.

I'm interested to buy my first rental property, and after doing a brief search I see that there are quite a number of places out-of-state (I live in NY state)  that offer affordable homes that deem to be in hot market areas right now (according to many different articles online). 

However, because I am unable to make trips to scout locations or look at homes in person. I know that finding a team is crucial, and not sure where to begin on this. Have you guys ever purchased a property without physically seeing it? I just want to know if this is a good idea ? And if you guys know any hot market places that will appreciate greatly, I would love to know! 

[Jay Hurst]

Quote from @Diana Teng:

Hi all,

I think my question above is pretty direct.

I'm interested to buy my first rental property, and after doing a brief search I see that there are quite a number of places out-of-state (I live in NY state)  that offer affordable homes that deem to be in hot market areas right now (according to many different articles online). 

However, because I am unable to make trips to scout locations or look at homes in person. I know that finding a team is crucial, and not sure where to begin on this. Have you guys ever purchased a property without physically seeing it? I just want to know if this is a good idea ? And if you guys know any hot market places that will appreciate greatly, I would love to know! 

 In my experience, and this will not be terribly popular here, but no you should not buy out of state if you cannot visit the area before you purchase if. And no again if buying a rehab project and if  you cannot visit during the rehab process.

My experience I am mentioning? Well it is doing loans for folks who bought sight unseen and trusted contractors/turnkey providers who sell the dream but in the end do the absolute min in rehab work (even though charge for a much better job) and/or sell a buyer on a class B type neighborhood that is  reality a class D neighborhood in an already low income town. Values are almost much lower then promised with tenant qualify also being much lower then promised. Are there folks who do not operate this way? of course, but you are taking that chance with your hard earned money. if you cannot afford or do not have the time to make a few trips out of state investing is just not a good idea  for many reasons.