How to Buy a Rental Property (Out-of-State) in Just 90 Days!

TL;DR

Jeff Costa shares his journey to buying out-of-state rental properties in 90 days.

Transcript

are you nervous to invest out of state are you worried that you won't select the right Market or be able to build a remote team Our Guest today has two out ofate properties in his portfolio proving that distance is no barrier to getting started whether you're dreaming of expanding beyond your backyard or just starting out there's so much to learn f... Read More

Key Insights

• Jeff Costa transitioned from traditional investments to real estate for more control over his financial future, inspired by his daughter's future needs.
• He managed to purchase his first rental property within 90 days by leveraging resources like BiggerPockets and finding an agent with an investor mindset.
• Jeff emphasizes the importance of thorough market research and finding a reliable team, including a property manager, to handle out-of-state investments.
• For his first property, Jeff chose a conservative one-bedroom duplex in Buffalo, New York, to minimize risk and ensure steady cash flow.
• His second property was a larger two-bedroom duplex in Rochester, New York, which required a kitchen renovation but offered higher cash flow.
• Jeff highlights the challenges of managing properties remotely, sharing his experience with a problematic property manager and the lessons learned.
• He plans to expand his portfolio with more significant investments like fourplexes or eightplexes, following a methodical growth strategy.
• Jeff advises new investors to take action and learn by doing, stressing the importance of overcoming analysis paralysis to achieve success.

Questions & Answers

Q: How did Jeff Costa transition from stock investments to real estate?

Jeff Costa transitioned from stock investments to real estate to gain more control over his financial future. He was inspired by the idea of creating generational wealth for his daughter. After researching, he decided to pursue real estate for its potential to provide steady cash flow and long-term financial security.

Q: What strategy did Jeff use to purchase his first rental property?

Jeff purchased his first rental property within 90 days by leveraging resources like BiggerPockets. He focused on finding an agent with an investor mindset who was active in the community. Jeff applied his analytical skills from his W2 job to conduct thorough market research and identify opportunities.

Q: What challenges did Jeff face with property management?

Jeff faced challenges with property management, particularly with a problematic manager who ghosted him mid-contract. He learned the importance of vetting property managers thoroughly, ensuring they have a reliable team and systems in place, and not relying on solo operators who might prioritize their own investments.

Q: How did Jeff manage his properties remotely?

Jeff managed his properties remotely by building a reliable team, including property managers and contractors. He used technology, such as FaceTime and Google Street View, for virtual tours and inspections. Jeff emphasized the importance of thorough research and communication with his team to ensure smooth operations.

Q: What was Jeff's approach to financing his properties?

Jeff financed his properties using traditional 30-year fixed mortgages through Wells Fargo. He maintained separate accounts for each property to keep finances organized. Jeff emphasized the importance of saving diligently from his W2 job and reinvesting rental income to fund future investments.

Q: What lessons did Jeff learn from his first property purchase?

From his first property purchase, Jeff learned the importance of minimizing risk by choosing a conservative investment. He realized the value of thorough market research and building a reliable team to manage properties remotely. Jeff also learned to trust his analytical skills to make informed decisions.

Q: What are Jeff's future plans in real estate investing?

Jeff plans to expand his real estate portfolio by investing in larger properties, such as fourplexes or eightplexes. He aims to follow a methodical growth strategy, building on his experience and confidence gained from previous investments. Jeff continues to focus on out-of-state markets with potential for cash flow.

Q: What advice does Jeff offer to new real estate investors?

Jeff advises new investors to take action and learn by doing, emphasizing the importance of overcoming analysis paralysis. He suggests leveraging resources like BiggerPockets for education and building a reliable team. Jeff encourages investors to start with manageable investments and gradually expand their portfolios.

Summary & Key Takeaways

• Jeff Costa transitioned from traditional stock investments to real estate to gain more control over his financial future, inspired by his daughter's future needs. His journey began with a focus on learning and building a reliable team for out-of-state investments.

• Within 90 days, Jeff purchased his first rental property by leveraging resources like BiggerPockets and finding an agent with an investor mindset. He emphasizes the importance of thorough market research and finding a reliable team, including a property manager.

• Jeff's first property was a conservative one-bedroom duplex in Buffalo, New York, minimizing risk and ensuring steady cash flow. His second property, a two-bedroom duplex in Rochester, required renovation but offered higher returns. He plans to expand with larger investments.