@Salvatore Lentini
I am locating in East Bay, California, where the average property price is incredibly high. Also, the real estate market is insanely hot right now, so the strategy of buy low, rehab, rent, and repeat seems impossible to get to start in my area. And the cash on cash return is meager, I can barely have cash flow on the rental property.
Therefore, I got to seek out-of-state opportunities. I found a couple of good cities on my list: Tucson, AZ; Atlanta, GA; Lubbock, TX.
And I have found a couple of suitable properties that meet my criteria in these cities.
Then, I stuck here.
Three things have stopped me here:
1) I would like to purchase the property under an LLC. If I will buy the property out of California, should I use the LLC from California because I live here or form the LLC where the property is located?
2) I am still looking for a better deal of mortgage loan. The APR is higher by applying for the loan through LLC than personal. The current rate is about 4.87, 30 yr 5+1, 70%LTV, prepay penalty is 3 years 3%. The APR is not easy to lower it down unless I pay more down.
3) I don't have enough time to fly to those cities to learn more details. Hence, finding a knowledgeable and responsible agent at the destination is essential for me. It is the most challenging part for me as well. I have no connections in these cities, how can I find a trust agent to get all the job done while I’m not there.
Thank you for being patient with me here. And that is it, that are why I am still not able to start my real estate investment journey. Investing out-of-state property is challenging, but I think it would be a good beginning for me to start my investment.
