multi families and out of state investing

General Real Estate Investing
1

hey guys,

i know there have been alot of threads on out of state investing and it seems some people recommend against while others state, having done due diligence, it isn’t too big of a deal.

i was wondering if you guys could provide some information on to steps i should follow for 1) out of state investing and 2)investing in multi-units.

as most of you know, i’m a preforeclosure guy and haven’t dipped into (nor planned to dip into) multi-families this early, but opportunties have arose so i’m going through the motions.

any info appreciated.

ryan

2

what area(s) have you thought to buy in that are out of your state?

have you considered hooking up with anyone you know in another part of country?

what about visiting the area(s)…time and money there.

i think making contacts in the area is also a very wise move.

3

hey TMCG,

i live in NJ. i was thinking about NY, FL, and TX.

traveling to FL i coudl do as part of vacation :wink:

NY is a drive away (not bad there)

TX would be the most difficult.

sure i’d consider hooking up with others in that area. you’re referring to realtors? other investors? what if the other investor was the one selling?

4

Miami will be a good place to buy in a year or so when we hit rock bottom which might even be lower then that.

5

How are the markets in NY and FL? I thought they weren’t doing so well and it’s worth waiting a little longer. I think Jacksonville, FL was doing ok by comparison.

Texas is doing pretty well. We’ve always been in the opposite cycle to the rest of the U.S. When every other market were hot, we were crying like babies. High foreclosures, high inventory, etc. Now, we’re the “it” state.

I like it here and enjoy the diversity. I’m selling my Austin duplexes so I can buy in Houston.

6

I have a friend of mine who got in big trouble with his out of state investments.
A few of his tenants just stopped paying the rent for a few months. … he couldn’t make the mortgage payments …

He’ll never do it again.

So be sure, you have somebody who can take care of the properties when you are not there.

7

i think that’s an understatement - wow.

investing in out of state properties is difficult to begin with. doing it WITHOUT LINING UP MANAGEMENT is like suicide.

8

With the right team in place, you should not have any problems. The nightmares most people are speaking of boils down to bad investments that aren’t generating enough to pay for a management team so they try to manage it themselves…that equals disaster!!!

9

I think its very easy to be tempted to buy in other states where prices may be lower, but if your buying a sfr w/n mgmt you can be in big trouble. I was in that situation, the house sat empty for about six months, it was broken into and had kids living in it. I live in Col, and the property is in ARk. I finally got an installment contract on it. I think it would be much easier if you had a multi unit, so one of the tenants can manage and keep you abroad on things. good luck.

10

I’ll second what Dee said. If you wanted to get some very good deals in Texas, you should have been here the last few years. Texas is now getting saturated with investors as the “word has spread” on the good deals here. As an example, my personal residence saw stagnated assessments the last 3-4 years, and a couple of years it fell. I just received my assessment for this year, and it jumped 13%! I’ve also seen an increase in HUD bidders, bandit signs, newspaper ads, etc., leading me to believe the rush is in ful force here. I’m not saying there aren’t deals to be had, but just that the market has already taken off here.

Ironically, I live in central Texas and I am looking out-of-state for deals now. :bobble