If a one-bedroom unit generates $30,000 annually, the net operating income after Hilton's mgt fee would be $15k.

So for each type your customer base is quite different and with it your operations/management is different. 

TIA- Sara @Sara WylderDifferent locations operate their auctions in completely different ways. 

If you know the ins and outs of the market and are skilled operators, of course, but if you buy a property that switches from Travis High School to Lamar, you're likely going to lose 10-20% of the property's value overnight. 

However, the high-interest rates are significantly affecting my operational costs.

Options may include traditional mortgages, private lenders, partnerships, or even self-directed IRAs.Calculate all potential costs including property acquisition, renovations, property management fees, taxes, and maintenance.Property Selection and Due Diligence:Use your local team to scout properties that match your investment criteria.Conduct thorough due diligence including property inspections, financial analysis, and reviewing rent comparables (rental rates in the area).Make Offers and Negotiate:Submit offers based on your research and due diligence.Negotiate terms that are favorable to your investment goals, taking into account potential repairs or improvements needed.Close the Deal:Once your offer is accepted, work with your local team to complete all necessary paperwork and close the transaction.Ensure all legal aspects are handled properly, including title searches and property inspections.Manage Property Remotely:Hire a reputable property management company to handle day-to-day operations such as tenant screenings, rent collection, maintenance, and emergency repairs.Establish clear communication channels and expectations with your property manager.Monitor and Adjust:Regularly review your investment performance and financial metrics (cash flow, occupancy rates, expenses).Stay informed about market trends and adjust your strategy as needed to optimize returns or mitigate risks.Long-Term Strategy and Growth:Evaluate opportunities for portfolio expansion or diversification in the same or different markets.Continuously educate yourself on real estate investing best practices and market dynamics to make informed decisions.By following these steps diligently and leveraging local expertise, you can effectively navigate the complexities of out-of-state real estate investing and build a successful portfolio over time. 

But my second answer is that if you are able to “go it alone” from a directional control perspective you will be much happier, and can operate lean where there is no counter arguments to be had with a partner.  

If you're talking about your parents retirement money, I would go the safest route possible and divide that money between a few different experienced operators syndications / funds.

They recognize that some opportunities are better than others and price is not always the best differentiator and they learned that from their experiences operating over the last few years.  

I am curious to know what the typical fees are associated with the operator they refer you to though.