@Brandon Diede You have a good start. You know what you are starting with and you know what you want, and in my opinion, I think it is pretty realistic. You want one property out of state that returns $500 a month in cash flow. The next steps is to determine where you would like to invest. You will need people in the location where you invest so choosing a location that you are familiar with or a location where you would like to visit to build a team would be your next step.
Also, to be honest with you, I wouldn't encourage you to get a property out of state unless you want to get 5 properties in the same area. The reason why is because it takes time to build a team where you want to invest. And if you are only looking to buy one property in that location then you're not getting as good of a return on your time and it would be more profitable time-wise to invest in something more passive such as a fund or syndication. So I would suggest going into a location where you would like to own 5 properties or more. It is fine to start with just buying one property, but I would encourage you to only go into a location where you plan on buying more.
Next, with 50k you can probably buy a property just off of the MLS and use the 50k as a down payment. Then you can have a property manager manage your property. This is the easy way to invest, but it is not the most profitable. A more profitable way to invest would be to find a discounted property (either a distressed property or a distressed seller) through your own marketing or through wholesalers and then get the property ready to rent through renovations. Understanding the numbers will give you a better idea of what the property will be worth after it gets fixed up. You don't want to spend a ton of money and time, and take on the added risk of buying a property to rehab without understanding the numbers really well. If you don't know your numbers well, you risk spending all that time and money just to bring the property up to market value, or worse, you have more money into the property than what the property is worth. So know your numbers so that you can create forced equity which increases your net worth as soon as you have finished rehabbing the property.
The people you would want on your team to help out with the property would include:
- a real estate agent and or several wholesalers
- a title company or law office that closes properties
- a hard money lender and or a long term lender (bank)
- a property manager or assistant on the ground
- contractors/sub-contractors, and or a handy man
- skilled laborers (electricians, roofers, plumbers) 3 deep
Hopefully this helps. Let me know if I can be of more help.
