I recently moved back to my hometown in Northeast Ohio from Houston, TX. Before moving, I had been working on a few deals (apartment buildings 18-24 units) down there.
Anyone have any advice for investing in a different state? I’m familiar with the areas (demographics, amount of jobs in the area, etc.); my concern is managing them from another state? Should I get a property management company to handle these for me?
My other concern is…investing in an area where jobs are limited like Ohio…I’d rather own property in a desirable area (sorry Ohioans, not one of the top places to live :smile)
Any advice or suggestions will help! Thanks!
You would definitely need a good property management company. You are wise to watch the jobs in the area. Also check vacancy rates in the area you are looking at. Ask the property managers how long it takes to get a property rented.
If you are just starting out (which I’m assuming you are since you posted this in the beginners forum) I would strongly caution you against starting out buying that far away. There’s enough to learn about this business as it is - compounding it by having the property be where you can see it only occasionally just lowers your chance for success, IMO.
Having said that, I agree that NEO is not the best place to buy for long term growth, but I can tell you that money is being made in that part of the state by people that have learned to buy right in the right area. Start small, become a good property manager on your own, and build from there.
good luck
I have actually started with investing out of state. It has surely some difficulties, and as stephkr wrote, the property management company is probably the most important thing. Do your research for the company well, check references, etc.
I would not recommend to start with investing all of your money in the first property out of state. Try to buy some cheaper single family house rather than a big apartment building. It’s better to learn on the smaller scale, since any mistake won’t hurt you that much.