Simply enter some information to view projected key return on investment (ROI) metrics, including cash flow, cash-on-cash return, net operating income, and cap rate.Minimize risk by investing in a pre-inspected, turnkey rental property with a tenant in place to earn cash flow beginning the day the deal closesBegin the loan application process early, because sometimes lenders require more paperwork than when you’re financing in your home stateHire a good local property manager who has experience working with out of state investorsWhile buying out of state rental property does come with some risk, investing the right way helps to minimize those risk while maximizing the overall returns of your property portfolio:Key reasons for investing out of state include increasing cash flow and portfolio diversification.Affordability, matching markets with investment strategy, and property affordability are three advantages to buying real estate out of state.Turnkey rental property and a local property manager help to reduce the risk of investing outside of your home state.All the best!

Do you have many restrictions (no pets, etc) which reduce your guest/tenant pool? 

We self manage with my wife doing the bulk of the PMing.

The goal here is to significantly reduce one of the largest expenses for many people- housing.

It reduces your risks in finding deals. 

I try to use my business credit and reduce what I hold in my personal name.

You also have to understand this is still a peak market with a good chance that property values will decline 10% or more in the next 12 months and a lot of people jumped into the short-term rental market during the last two years, so this may reduce the demand and potential income.1.

That will reduce your need to renegotiate on price after going under contract3 - Use a local Title company net seller sheet to calculate estimated closing costs. 4 - Find a hard money lender that can close quickly. 5 - Practice patience.

We've considered selling some of our properties to leverage the building and reduce our total loan amount but would love to hear your thoughts on this strategy. 2) Should we opt for a small apartment building - thinking economy of scale? 

I start with ARV less the cost of repairs and may be a little bit of extra margin because somebody still has to take all the work on, never mind the fact that your buyer pool will be reduced to cash buyers and those with rehab loans.