I am starting to think of investing out-of-state and looking for some thoughts on investing out-of-state and finding an agent who can help find these out-of-state properties.Appreciate any feedback.Thank youHey Manmeet, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio.

I prefer to look at returns based on long-term expenses.

There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible.

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Looking forward to connecting minded person and trustworthy team of Realtor, Wholesaler, Lenders and General contractor who can assist scaling my real estate dream.Hey Harit, I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio.

The current market conditions have made properties quite expensive, potentially leading to a scenario where I'd have to cover monthly expenses out of pocket.

Here are a few incentives as noted by the IRS:168(k) - Special Allowance for Certain Property (Bonus Depreciation)179 - Election to Expense Certain Depreciable Business Assets Other incentives included in the tax code, however, may reduce the need for a taxpayer to perform a cost segregation study because they give preferential treatment for certain qualifying 1250 property such as 168(e)(6) - Qualified Improvement PropertyHave you utilized either of these incentives as part of your cost segregation study?

So besides penciling income/expenses and profit/loss, I would also be looking for comparable sales to justify your purchase price. 

The longer you wait, the more likely mold starts to form and creates additional expenses and damage for your project.

It is very expensive though, and for a duplex it's not worth it.