Prices are still pretty high where I live right now(Seattle). However I do see good deals for investment out of state. Places such as AZ, TX, NM, SC and PA. I am planning to buy up cheap properties and have the property management companies manage the rentals. What are your thoughts?
Thanks!
Technology has made the world a smaller place. No reason to limit yourself to your own neighborhood.
I agree with AJ290 for the simple reason I’m getting ready to purchase a home in Germany. I plan to stay here another three years from todate. I have already been here two years. The normal tour is three years but I plan to stay another two years. I have a home in Texas and I have 4 duplexes in La. This is a great time to invest depending on your investment goals.
I’ve lived in the Seattle area, so I understand your difficulty in finding investment properties in an overpriced market. It’s going to be hard to find good people to work with who will have your best interest at heart. Seems like many “professional” property managers don’t care about helping you make any money. As long as they get their 10% and can pass on some repair expenses to people who work with them, it doesn’t matter if you have anything in the end. If you’re not going to be in the area, you’ll need to find an affordable plumber, handyman, cleaning crew, etc. I would get someone with good rates who will treat you right because of repeat business rather than having a Realtor dial the first number in the phone book when something goes wrong.
All-
Thanks for all your valuable opinion. You guys are great!
I would absolutely buy in places where you can make several time more mony for he same amount of work. Why limit yourself to your own back yard? Seems arbitrary.
I would, though, pick a place to invest somewhere in the US and then focus on advertising there, building a buyer’s list and contacts like contractors, etc, and making it a success before trying other places in the country.
Each new market you invst in will have a startup period of funding the operation and getting it running.
Thanks Alan. I am currently considering following markets - Las Vegas, Phoenix and Denver where I believe RE values have gone down considerably and are undervalued right now…
With winter coming we have focused on warmer climates, but we try to sell our properties to investors within 30 days. Maybe you can get better deals on colder weather states, because of owners not wanting to carry them through the winter.
Just a thought…
What’s your price range. I can manage you some quality exclusive properties. Just visit my site and see for yourself. I think there are a few still available at your budget. Buy properties where market booms always.
I know TONS of investors are looking in AZ in the outlying areas and the RE is very very reasonable right now-you can get about an 11% return on your rental and if you flip about 49%.
Leslie
i have read that both Las Vegas and Phoenix are horrible markets right now, is anyone investing in these areas and making a nice return. I am in southern california and looking for a multi unit to rent out.
If you have enough capital you can do so, anyway they can not be waste because you can sell them in due time or rented them.
Which cash flows better, Nick. Monterey or Carmel? :biggrin
Hey Seattle buyer, I am an investor in the Cincinnati market for the past 30 years and I currently have my team doing rehab work etc. for another investor from the Seattle area as well as many others.
My suggestion to you is to decide upon your market and make contact with the local investor group and obtain contacts that way. You will usually find very helpful people through these groups.
If by chance the Cincinnati market is one you might want to consider, let me know and I will be happy to give you my thoughts.
Good luck!
Seattlebuyer, Have you looked at property values in Spokane and surrounding area? Lots of affordable SFH properties in eastern WA.
Hey Seattle Buyer, the problem with long distance real estate investing isn’t property management - most of my properties are in Baltimore, but I live in San Francisco these days.
Rather, the problem is familiarity with the subtleties of a given market, for buying purposes. If you don’t know a market well, how can you make sound investing decisions and find bargain deals, when competing with local real estate professionals, with extensive networks in that area?
If you want to invest far from home, I would invest with a partner who you know VERY well, and who in turn knows your target market VERY well. You don’t want to overpay and find yourself upside down, especially in such a challenging real estate market.
Best of luck,
anyone with experience will tell ya, dont invest in out of state or area houses. If ya cant drive there in a few hours its too far.
Possible but I should consider my own area first.