Investing in rental property out of state (best cities & towns?)

[ryanpal]

i have an IRA that i'm looking to invest into some rental property. typically i like to abide by the "invest in your backyard" mentality for landlording but here in NJ homes are pretty expensive in most areas that aren't "war zones". i think the key here would be to link up with an investor who is local to the state to be invested in.

some of the key factors would be to invest in a state that is landlord friendly, short foreclosure timeline (for properties acquired via nonperforming notes), cheap to obtain. i'm sure there are many more factors to consider.

on that note, would anyone like to share some info? perhaps maybe even a course that covers what i'm looking for?

 

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[MJ DeMarco]

I think Phoenix is a hot buy right now ... the climate makes people want to move here, and the RE is depressingly cheap. This city will bounce back from it.

 

[Rickson9]

I think Phoenix is a hot buy right now ... the climate makes people want to move here, and the RE is depressingly cheap. This city will bounce back from it.

I agree. The prices in Phoenix, AZ are ridiculous. Way below replacement cost.

 

[Red]

you mean it's not normal to be able to buy for $25/sq ft?


bah dum dum TSSSSS.....

 

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[Kung Fu Steve]

Think I know where my vacation home is going!

 

[phlgirl]

Remote or local, the rules of investing are the same. The added difficulty with remote investing is that the due diligence is more of a challenge, from a distance.

Each person has to decide why they are investing. Cash flow now? Retirement? Tax advantages? Once decided, rules must be set to ensure that, whatever the investment, you meet those expectations.

Property management is crucial. A solid relationship must be established with a reliable PM company and then another, backup company, should be in your back pocket.

A valid means of verifying the value of the property is required - preferably an appraisal, performed by someone YOU select. A solid comparable sales analysis, performed by an independent realtor, can also be helpful.

Understand the rents. A good property management company will know this with confidence.

I see no reason, in this market, to buy investment property which does not provide both cash-flow and equity/opportunity for appreciation. Both are available in numerous markets in the current economy. That said, different people buy for different reasons. Do what works for you.

Good luck.

 

[hakrjak]

My PM is telling me here that any 3 bedroom home is lasting a maximum of 5 days on the market before it's rented right now. Major shortage of rental property. Are people in other places across the country experiencing the same?

 

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[ryanpal]

Remote or local, the rules of investing are the same. The added difficulty with remote investing is that the due diligence is more of a challenge, from a distance.

Each person has to decide why they are investing. Cash flow now? Retirement? Tax advantages? Once decided, rules must be set to ensure that, whatever the investment, you meet those expectations.

Property management is crucial. A solid relationship must be established with a reliable PM company and then another, backup company, should be in your back pocket.

A valid means of verifying the value of the property is required - preferably an appraisal, performed by someone YOU select. A solid comparable sales analysis, performed by an independent realtor, can also be helpful.

Understand the rents. A good property management company will know this with confidence.

I see no reason, in this market, to buy investment property which does not provide both cash-flow and equity/opportunity for appreciation. Both are available in numerous markets in the current economy. That said, different people buy for different reasons. Do what works for you.

Good luck.

Great info. The reason for purchasing the investment property would be for both cash flow and retirement.

I think my IRA will go a lot further in states like TX.

 

[ryanpal]

My PM is telling me here that any 3 bedroom home is lasting a maximum of 5 days on the market before it's rented right now. Major shortage of rental property. Are people in other places across the country experiencing the same?

I'm not seeing this behavior my local towns of NJ. My one partner isn't seeing this in parts of FL where she invests either. However I've heard quite the contrary from others...it obviously varies.

 

[Red]

My PM is telling me here that any 3 bedroom home is lasting a maximum of 5 days on the market before it's rented right now. Major shortage of rental property. Are people in other places across the country experiencing the same?

We're seeing it in states that were hit hard with the foreclosures. People have been displaced from their homes & are now seeking other homes (no one wants an apartment after having your own home). While I don't think it's quite the 5 day rule here, there is a lot of activity, nonetheless.

In 2005 in Phoenix, you had to put a minimum of 35% down to make a property cash flow at current market rates. Now I've seen homes, nice homes, be cash flow positive at 100% financing.

 

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[kingwizard]

The best state to invest in Real Estate right now I believe is Texas.
The economy here is good and the real estate market is stable. Just stick with the big cities like Houston, Dallas, San Antonio and Austin and you should be fine.

Here is short video describing why Texas is the place and some cool facts about the Lone Star State.

[video=youtube;FC16-4fh-Qc]http://www.youtube.com/watch?v=FC16-4fh-Qc&feature=player_embedded[/video]

 

[andviv]

you mean it's not normal to be able to buy for $25/sq ft?


bah dum dum TSSSSS.....

OK, I'll bite... pls do send me an email with listings!

 

[Red]

OK, I'll bite... pls do send me an email with listings!

Here ya go, Andres-

xxxxx Sorry, removed link! PM me if you want the link! xxxxxx

Some are not quite $25/sqft (prices have come up a bit, y'know) but check out the one on Cowpath Dr (number 11) coming in at $26.07/sq ft.

These are NOT deceptive short sale prices -these are ALL bank owned homes with a minimum of 3 bedrooms, 1500sq ft built since 2005 in Maricopa, AZ.

Come one down! I know a good broker in these here parts.....

 

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[Neville]

Remote or local, the rules of investing are the same. The added difficulty with remote investing is that the due diligence is more of a challenge, from a distance.

Each person has to decide why they are investing. Cash flow now? Retirement? Tax advantages? Once decided, rules must be set to ensure that, whatever the investment, you meet those expectations.

Property management is crucial. A solid relationship must be established with a reliable PM company and then another, backup company, should be in your back pocket.

A valid means of verifying the value of the property is required - preferably an appraisal, performed by someone YOU select. A solid comparable sales analysis, performed by an independent realtor, can also be helpful.

Understand the rents. A good property management company will know this with confidence.

I see no reason, in this market, to buy investment property which does not provide both cash-flow and equity/opportunity for appreciation. Both are available in numerous markets in the current economy. That said, different people buy for different reasons. Do what works for you.

Good luck.

To buy a commercial estate in this point of time, i think of a very wealthy person a bit a billionaire as it takes very large amount of money to buy a commercial building with running business.As the matter of fact, nobody wants to sale hi profit giving estate in theses days.But i would suggest you to get out of your living room and go the commercial area , there you find plenty of people who are more than willing to you help you with some commission to earn from you and other party.

 

[debronsky]

Good Cash Flow Property

i have an IRA that i'm looking to invest into some rental property. typically i like to abide by the "invest in your backyard" mentality for landlording but here in NJ homes are pretty expensive in most areas that aren't "war zones". i think the key here would be to link up with an investor who is local to the state to be invested in.

some of the key factors would be to invest in a state that is landlord friendly, short foreclosure timeline (for properties acquired via nonperforming notes), cheap to obtain. i'm sure there are many more factors to consider.

on that note, would anyone like to share some info? perhaps maybe even a course that covers what i'm looking for?

I'm currently investing in Akron, OH. You can buy a 3 bd/2 ba, in a B or C neighborhood for $30,000. Easily rents for $500-$600. ROI 12-15%.

These are perfect IRA investment properties. I just helped a client use her IRA to purchase 2 of these properties. She will purchasing a 2-4 more of these in the next few months.

I will continue to buy at these prices with these returns all day long!

PM me if you have any questions about the Akron, OH real estate market.