I’m interested in generating cash flow from multi family properties. In the market I live in, I’m not going to be able to find an even semi decent duplex for less than 250k, and at the price it won’t be profitable with the down payment I have avaliable.
What are you experiences and thoughts about buying property in other cities/states and using a management firm to place tennants, collect rent, etc?
I have had good luck in Vegas and Phoenix. I live in Colorado yet I do not manage my own properties (Just Lazy). On the other hand I have issues in Alabama with my property manager there and I can’t fire them. For some reason I can’t let Mom get fired. Not to mention I give her free rent to manage my other property. So yes other then Mom I have had good luck.
haha, but atleast your property manager will cook dinner for you should you decide to visit
thanks for the input, anyone else?
yes, it is very do-able, but it is a lot of effort to invest out of state as you have to build up the team (agent, lenders, inspector, prop. mgmt , etc). If you invest out of state, and you don’t use prop. mgmt, you’re an idiot (IHMO).
With that said, investing out of state is going to have higher expenses than local (if you ahve some inclination do some of the repair work yourself and/or keep an eye of what is going on at your prop.)