How to Buy Your First Out-of-State Real Estate Investment (Step-by-Step)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 7 February 2025

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

Out-of-state real estate investing is making a comeback, becoming one of the best investing strategies of 2025. Why? Home prices in most coastal markets have exploded, forcing investors in pricey areas to look elsewhere for real estate deals that work. Thankfully, America is a big country with plenty of profitable real estate markets, so even if you’re priced out of your own area, you can still invest elsewhere. So, how do you start? What should you do going into a new market as a new investor? Kathy Fettke is returning to the show as our resident long-distance real estate expert, showing you how to buy out-of-state investment properties in just a few simple steps. Anyone (and we mean ANYONE) can follow these steps to purchase a profitable property from a distance, even if it’s your first rental. We’re giving you an exact roadmap of everything you need to know: how to choose markets, find deals, analyze them, get property management, and start renting them out even if you live thousands of miles away. In This Episode We Cover: How to pick an out-of-state investing market and whether you need to visit it first Analyzing deals from a distance and key factors to get right (insurance, property taxes, and more) How to buy a house sight unseen, EVEN as a beginner investor The one type of rental property Kathy says you should buy for your first rental What to tell a property manager as soon as you close on your first long-distance rental And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube BiggerPockets Market Finder Try REsimpli, The Only All-In-One Real Estate Investor CRM Software That Helps You Manage Data, Marketing, Sales, and Operations Sign Up for BiggerPockets Momentum 2025 to Supercharge Your Investing This Year Grab the Book on “Long-Distance Real Estate Investing” Find an Investor-Friendly Agent in Your Area Should You Invest Locally or Long Distance? Connect with Kathy Connect with Dave (00:00) Intro (01:31) Why Invest Out of State? (05:51) 1. Pick (and Visit!) Markets (11:00) Meet with Agents/Property Managers (15:17) 2. Define a "Good" Deal (17:16) Buy New/Turnkey? (20:45) Know Your "Advantage" (23:43) 3. Make an Offer (27:47) How to Buy Sight Unseen (30:18) 4. Close and Manage the Rental (33:22) Reviewing the Steps Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1080 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You could still invest in real estate even if it's too expensive where you live.
0:04.6	Buying properties hours away and managing them long distance may sound intimidating,
0:09.1	but this is a tried and true strategy that investors have successfully used to build wealth
0:14.1	for decades.
0:15.2	Today, we're going to explain how to pick a long distance market, the steps you need to take
0:19.3	towards actually going and pulling off an investment,
0:22.7	and some very common mistakes that you can take some care to avoid.
0:32.0	Hey, everyone, it's Dave here from Bigger Pockets.
0:34.8	We've said it for a long time that investing where you live is probably
0:37.7	the best way to invest for most people if you live in an affordable market. That's still true,
0:43.1	but with prices rising in so many markets, out-of-state investing, at least I believe, is becoming
0:49.2	a somewhat necessary and good opportunity for the majority of people out there.
0:55.0	And I don't see this nearly as a challenge.
0:57.5	Like I said, I think that there are a lot of financial benefits and opportunities for
1:02.5	return by choosing to invest in a different market.
1:06.5	You can basically handpick any place in the whole country to invest that perfectly matches your
1:11.8	strategy and your portfolio, your price point.
1:15.1	You just have to follow some basic best practices.
1:18.7	And today I'm going to share some of those best practices that I've learned from my own
1:22.7	experiences investing in different markets.
1:25.3	And I'm bringing on a very experienced long distance investor,
1:30.0	Kathy Fecky as well. Gathy, thanks for joining us. Thanks for inviting me. Well, happy to have
	...

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