Originally Posted by
iaflyer
Excellent info, both to FH and Gunfighter, much appreciated. Question - did you search within the local area (ie, within a hour) or did you look further afield? Also, I'm assuming that a property with existing tenants or mostly filled with tenants is much better than a vacant property?
Self managed properties have all been within an hour. Syndications are nationwide, which creates tax return obligations in multiple states. My NNN property is within an hour, but that was not a requirement.
I know single family investors from non desirable rental states like CA who buy in other states where investments make sense such as TX.They bought using vetted single family investment brokers, then used referrals to find a GC to do the rehab work and leasing agent to show the property. Some also hired a property manager, others self manage via cell phone and an online portal like Rently or tenant.cloud.
As your knowledge and experience grow, out of area investing becomes less risky. Doing so with a network of other investors also helps. In my case out of state syndications were part of a diversification plan that also reduced my role.in the success of the business. I've considered some out of area direct owned real estate, but have found enough within my area to work with.
A single family with a tenant in place is risky if the previous landlord didn't screen them properly. A multi tenant property comes with some risk as well. In the case of my first storage facility, there was enough in place income to cover the expenses and debt service with about $1000 of monthly cash flow.
Immediate cash flow was a requirement on my houses and first commercial property because I had limited resources. As investment cash flow grows and wealth compounds vacant or low occupancy isn't as risky IF it's due to poor management or property condition. Knowing the submarket is essential for value add or development
Investing in your knowledge and networking will save money and speed up the process. I'd recommend attending a couple local meetups or RIA meetings. Also look at Lifestyles Unlimited, bigger pockets and some Jason Hartman podcasts. Local, state and national apartment associations are also good even for single family rentals. In TX, membership grants access to a solid lease agreement and a network of trades and other investors.