Hey Arianna,
Investing out of state from the start can be challenging. The first step is to educate yourself and target a market. Understand the local market conditions, including property values, rental demand, economic trends, and neighborhood dynamics. Research crime rates, school quality, and future development plans to ensure you're investing in a promising area.
Establish a reliable network of local professionals, such as real estate agents, property managers, contractors, and inspectors. Their local expertise and on-the-ground presence are invaluable for managing and maintaining your property effectively. This can be challenging if you’re not local to that market, requiring extensive vetting over the phone. Utilize platforms like BiggerPockets and other social media to source your team. It's always better to go off a referral with a proven track record rather than a random number from a Google search.
One caveat to consider is that without owning prior real estate or a primary residence, securing long-term financing might be more challenging. Many lenders are hesitant to provide long-term financing to first-time homebuyers, which could limit your funding options.
Finally, consider this: if you invest your cash reserves in one property, how long will it take you to save enough to buy your next investment property?
