![]() While great on paper, these are usually in markets with no growth, in neighborhoods with tons of available rentals, and/or have only been tenant occupied. Providers in the market will sell you "this house is only $75k and rents for $1500 per month with over $1k cash flow per month" type investments. Again, you make it easy for yourself to be "sold" on poor investments. ![]() On the opposite end, investors might go with plan 2) and just say to themselves "I don't care about the area, the numbers are amazing!". So they'll artificially create an investment that seems to work, only for you to end up with a poorly constructed home with finishes that don't attract the best tenants leading to higher vacancy and repair costs. There are plenty of great turnkey providers out there but there are also lots of shady ones that understand you're looking for these factors. This is impossible but opens up the opportunity for malicious actors to pitch directly to you. This looks like "I want an SFH in a great neighborhood with perfect schools, excellent crime ratings, no HOA fees, and at least a 15% CoC return". 1) Because you don't "truly" know the area investors will start hyper-fixating on the metrics without understanding the tradeoffs. The natural response by investors is to either 1) over-engineer their approach to these factors or 2) not dive deep enough into these. Things like neighborhood quality, construction quality, tenant profiles, livability, etc are qualities remote investors struggle to grasp. Investors naturally gravitate towards opportunities where they can be highly confident in "the numbers" because they can't grasp the other, more tangible real estate basics. It goes poorly when investors only focus on "the numbers" and ignore real estate basics. I've worked for multiple venture-backed start-ups in the space in a variety of capacities and 1-on-1 with investors as an independent consultant. I've worked with hundreds of out-of-state investors over the past 5 years. ![]() Trying to find the right realtor/lender/pm is not easy. Unfortunately, no matter the line of business, there will always be bad eggs. With that being said, I hate that is it this way. So many people find a way to point the finger in this situation. If accept responsibility for our actions, we will learn from our mistakes and will have the power to improve next time. IMO anyway." First of all, I LOVE the extreme ownership here. "If your investment fails, you lose that is on you and no one else. Always check it out for yourself! If your investment fails, you lose that is on you and no one else. We made three trips to close on the properties. We did not need lenders as we were paying cash from prior sales of rental properties, it was a 1031x. We came to know realtors on line, we researched properties ourselves and had the realtor drive us to the dozen properties we selected. ![]() We had never lived there but we had visited. Quote from Abdool When we lived in California we invested there and later in Washington state. Even friend recommendations can disappoint. The journey will eventually lead you to the right team. You just need to start somewhere! You have to vet them carefully and ask questions. Once, an inspector saved me from buying a property from a realtor who convinced me to use him to represent both sides of the transaction to save $$$.ĭo your due diligence! A good team that you trust is the key to success. I have been mislead on listings, wasn’t shown the full property on a video, proposed war zone properties, etc etc. I have failed to close deals in Columbus, OH, Cleveland, Milwaukee and finally settled in Kansas City. Were you taken advantage of at any time because you were out of state and trusted what you were told? I'm considering out-of-state MTR because NY is not a landlord-friendly state. Yes, in different markets and different ways. ![]() How did you develop relationships with the realtors, mortgage lenders, property managers etc. I'd like to hear from my out-of-state investors that they successfully invested in a state they had never lived in or worked in that state for a long time. ![]()
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