To see what properties are available in certain areas, you can use loopnet.com. The lookup service is free and some listings post the financials. If you know how to run the numbers, you can make at least a semi-informed analysis of how well the property will perform.
My realtor was referred to me by Pacific Blue Investments (www.pacblueinvestments.com). They hold real estate classes and is a good resource on how to start out in real estate investing out-of-state. You can use the realtor referral service without having to take their classes, but I recommend taking the classes. They taught me a lot. They do have a service where you can basically give them the money and they will invest the money in real estate for you (or at least guide you on where to go).
I prefer to do the dirty work myself because it allows me to use the real estate professional tax deduction.
Personally, I don’t like any real estate investment that is more than 2 hour’s drive. The travel and the hassle is just too much.
The post is not supposed to argue that “you should be in real estate investing out of state”. There are many people here who have lives and would prefer to do other things with their time. I can tell you that it does not take as much time as you think, but you are correct that real estate investing is a lot of hassle. Still, it has many rewards so I can only offer my testimonial that the real estate investing I am doing is going to pay off HUGE.
I will say that most people are comfortable with their real estate near them (my own dad uses the ‘two hour rule’), but anybody on this blog can tell you that there is no good real estate investment property here in California. In order to make maximum use of my money, I had to go out-of-state. Does the fact that my money will generate a 43% rate of return offset my uncomfortableness of the property being a few states away? ABSOLUTELY. If you want to invest in anything, real estate or stock market, you have to be able to use math, use reason, and keep emotion out of it. Take reasonable risks, do your due diligence, but ultimately educate yourself. Certainly don’t limit yourself by saying “the travel and the hassle is too much”.
