investing out of state

I recently sold my home & was able to profit $200k. I want to start purchasing rehabs but I live in the Wash DC area & homes here are to expensive. I want to purchase some homes out of state but have never done this before. If I purchase a home out of state & want to rent it out should I contact a realtor to be my property manager or should I do it myself. I cant afford to take off from my job everytime a tenant needs something.
Please Advise :-\

There are bird dogs out there looking for investors! that will do it all for you 100% Check there track record and try it that route! I personally did that for a few people that now have 500k or so in the bank and love life! It is a simple thing to find someone! Hope that helps!

One thing to consider when looking for someone to “manage” your property for you. Check with the local state laws where you plan to purchase, but in my state you cannot manage a property for someone unless you are a licensed Real Estate Agent. And of course with that comes all kinds of rules and regulations that they must adhere to.

If you plan on investing out of state, or even near by, I would factor in the cost of property management. Even if you do it yourself, what happens if you have to leave the area for vacation or work or other extended period of time. You will still want the property to be working for you in this event.

I usually rely on the advice of a local Realtor when looking for a property management company. However, I also go to the IREM website for referrals and information. www.irem.org

There you can search for professional managment companies that specialize in the types of properties you are looking for.

cateyes,

carlittle is giving you sage advice. ALWAYS include property management numbers into your cashflow analysis to make buy/don’t buy decisions!

Someday, for whatever reason, you may need to pay a professional management firm and when you do, you’ll be glad the money’s in the budget. In the meantime, you are paying yourself. I put it in hte bank as additional reserve funds…

I left the DC area partly for this very reason (partly because of the high cost of living, as well as crazies blowing stuff up!)…

Keith

I noticed you mentioned not using property management and I just wanted to share my experiences when it comes to collaborating with other investors.

Every single negative/disgruntled real estate investor I have ever spoken to never seemed to calculate or even use management companies and their stories are all the same. Yet all the successful folks I run into mention they refuse to buy a property if they can’t afford management. It’s almost a given when I am talking to some ex investor who is telling me how bad REI sucks they usually also tell me they managed it all themselves because they didn’t “trust” another company to do it for them.

Now I am sure there are alot of people on this forum that will tell you different and never use management but I have personally heard too many bad stories and every single one of them usually ends up with an owner too stubborn to pay.

I manage all of my own but I still include the numbers in my calculations such that someday, when I retire, I can pay a management company and I can go do whatever it is that I do…

If I’m not disgruntled, am I “gruntled”? :wink:

Keith