How should I invest in rental property out of state?
I want to buy rental property out of state. If I am not familiar with the state, how should I pick the city to invest in? Some states have cities with similar house characteristics that range from 00 to 0,000. I don’ t even know where to start. Can I just hire a property manager? How much do property managers charge? Is it typically a percentage of the rent or a flat rate?
I live in San Diego, CA and to buy a rental property out here would cost over 0,000. I do not have 20% to put down here. Also, the rents out here do not justify paying that for a rental when I can buy out of state where the rentals are cash flow positive. I have about ,000 to invest and I know I can buy property out of state for that. I just want the most for my money.
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November 16th, 2010 at 9:02 am
What is your reason for wanting to invest out of state? I own rental properties out of state and then one in the same town where I live, and it’s so much easier when they’re close by.
Property managers typically take 10% to 15% of your monthly rent.
November 16th, 2010 at 9:02 am
No, the reason is you do not know the market. You even admit you do not know where to start. Let me fill you in. People in your situation are why the real estate market in the US is crashing. People got into the market and did not know what they where doing. They bought properties on pure speculation. Where you need to start is by obtaining more knowledge in your field. Work part-time for a local landlord or property management company, read books, take many trips to the area where you want to invest, tour hundreds of houses, journal the market, track home list prices versus sale prices. Then invest. Think of it this way. You are in kindergarden right now and need to graduate high school to be sucessful. You could hire a property manager, guess rent amounts and property values but that is a huge risk that will probally never pay off.