Everyone enjoys getting a higher rate of return on their under market value property, which is why many investors look for out of state investment properties – meaning investing in lower cost markets than say, northern California.
But there is no question that there is some risk involved in investing outside of your home territory. This can get particularly dicey if you are investing in out of state investment property for appreciation. As a financially retired real estate investor in Texas, I never bought under market value properties for appreciation. Never! It is just too risky.
I always buy my below market value properties in San Antonio TX for regular, steady cash flow.
When buying out of state property, it is easy to be lured into a questionable market by low prices and promises of high rates of return. Here are some of the pitfalls you may run into when investing out of state:
Your under market value wholesaler may tell you that the property can rent or owner finance for a higher monthly amount than the market supports. You should make sure that the rental and sold comps for the property support the proposed monthly payment. Note that you can eliminate most repairs on a property if you owner finance the house rather than rent it out.
Under market value buyers in some out of state real estate markets are shocked to find out that they cannot sell the house as quickly as they like. Some developers in some states may restrict selling a property in the first year. I always buy under market value properties in C neighborhoods in San Antonio, so I do not have this issue.
You buy an under market value property out of state and you discover that you are not allowed to lease it. Sometimes a homeowner’s association will pass a new restriction that limits leasing a property. Most of the neighborhoods I buy my below market value properties have no HOA.
Extra costs for investing out of state. Other states and localities may have higher taxes and transfer fees. In Texas, we do have higher property taxes as we have no state income tax.
Under market value houses in out of state markets may not appreciate as quickly as what you were promised. I never buy below market value properties for appreciation, so any appreciation is just icing on the cake for me.
Property management companies may not manage your out of state investment property effectively. I always recommend that out of state investors owner finance properties when they buy them from me to eliminate property maintenance issues.
Generally make certain that you do your due diligence when buying out of state investment property under market value. Do careful research on property values and price to rent ratios for the specific neighborhoods you are considering.
Buying under market value properties can be a wonderful investment, whether you decide to rent them out or owner finance them (as I do in my 100+ property portfolio).
Of course, the major advantage of buying under market value properties is the cash flow that they generate each month. On my below market value properties in San Antonio TX, I earn approximately $700 per month on my owner financed properties owned in cash. Here is an example:
$65,000 cash price, $15,000 rehab, resold for $99,900 owner finance, $1041 per month, 7 DOM, 12.9% ROI.
This under market value property was purchased by a CA cash buyer in July 2015 at 1622 Alametos St. This house is in 78201, and is north of downtown. This region is seeing rapid growth and appreciation.
The investor bought cash on this below market value property, and we completed $10,000 in repairs in 3 weeks:
$65,000 cash price
$1500 carpet removal and adding wood vinyl in 3 bedrooms
$3500 HVAC
$750 for third bedroom conversion.
$750 for dumpster – clean out
$1500 two tone interior paint
$500 update five light fixtures
$1500 level front bedroom
$1500 closing costs
Total Investment: $76,500
Repairs were complete on July 31, 2015 and property was put on MLS. By Aug. 3, we had two full owner finance, price offers as follows:
$1041 per month
30 year note
10% interest rate
$5000 down payment
$99,900 final price
$216/mo. taxes/insurance
Investor’s total monthly income after taxes/insurance is $825.
Final ROI: 12.9%
Now that is some nice passive cash flow, isn’t it?
Many under market value investors are not able to find good properties with cash flow in their home markets. So, they may be looking outside of their home market at out of state investment properties.
But where should you buy your under market value properties in another state? Hopefully I can shed some light on that key question here.
I have been fortunate that I do not need to consider buying out of state investment property because my returns in San Antonio TX are still over 11% per year, even with housing prices up a lot in the last year. Two years ago, a typical below market value property I bought was $40,000, now it is more around $55,000.
I continue to invest here in San Antonio, one of the best cities to invest in real estate, because the return is good and I have many advantages:
I have a real estate license in TX, which saves me big when I buy under market value properties.
I have a large network of contractors, fellow investors, lenders, agents, title companies etc.
I know my neighborhoods very well, which means I know how much to pay for a house and how much to resell it for. I also know how much to rehab a house without overspending.
But if you are an out of state investor looking for best cities to invest in real estate, what should you consider?
Before you start to look for out of state investment properties, I suggest that you increase the area that you are looking for under market value properties in your home state. If you only need to drive 90 minutes to find a good area to buy under market value properties, then that might have more appeal than looking 1000 miles away. If you are a California investor, this may not work for you though.
If you cannot invest in under market value property near you, think about areas that you know. Did you grow up in another state? Do you have any family or friends in a good state you can buy out of state investment property? The better you know that area, the easier it is to find below market value properties in decent areas.
If you cannot find a good out of state investment property where you know people, do you have time to research a new market? It is usually a good idea to visit a new investment property area and you can have a bit of a vacation while yo do so.
Look at lists online for the best places to buy under market value properties this year. You can find excellent resources online that tell you the cities with the best rent to value ratios. I personally prefer to owner finance my properties and not rent them, however.
How to Know If An Area Will Be a Good Under Market Value Investment
Once you have located a good potential below market value investment market, you want to know if you will be able to produce good cash flow. You want to make sure that the economy is strong and stable above all else. Getting the cheapest real estate is NOT the only consideration!
Is the population growing or shrinking? A growing population is a very good sign of a strong job market. Here in Texas, we are seeing major population and job growth as of 2016, even with lower oil prices.
Are housing prices going up or down? If housing prices are dropping, this is not always bad. During the 2008 crash, the values of under market value properties in San Antonio dropped, and it was awesome! I could buy houses for $30,000 again, and I did – more than 25 of them. However, if housing prices are crashing and the population is leaving, this could be trouble.
What kind of risk is in the area? Is it a part of the country that has a lot of tornadoes or floods? Are there crazy swings in housing prices? In San Antonio, we are pretty steady here. The market didn’t go too high in the boom, so didn’t fall that far in the crash.
What about property taxes? We have no state income tax here in TX but we have higher property taxes. Still, I’ve managed to financially retire at 28 years old with my owner finance portfolio of under market value houses.
If you are thinking about buying out of state investment property after you investigate the local market, you will need to have a good team to rely on in that area.
One way to minimize problems with property management in an out of state market is to owner finance your properties rather than rent them out. You can have a buyer live in your house and pay you mortgage payments each month. The buyer maintains the house, and if they don’t pay, you foreclose just as a bank would. This can work very well in Texas, which is an easy foreclosure state.
In summary, there are many excellent below market value property markets to invest in. Just because you don’t live in one does not mean you can’t invest. If you are thinking about investing in another area for under market value property and have questions, contact me and I’ll try to help.
This distressed property sale was completed in August 2015. The market in San Antonio TX has changed greatly in the last year. The market is booming and prices are up across the board, even in fixer upper homes.
$65,000 cash price, $15,000 rehab, resold for $99,900 owner finance, $1041 per month, 7 DOM, 12.9% ROI.
Still, we have CA investors coming into our fine city and buying property investment homes and making 12-13% ROI annually, with no property maintenance.
This under market value property was purchased by a CA cash buyer in July 2015 at 1622 Alametos St. This house is in 78201, and is north of downtown. This region is seeing rapid growth and appreciation.
The investor bought cash on this below market value property, and we completed $10,000 in repairs in 3 weeks:
$65,000 cash price
$1500 carpet removal and adding wood vinyl in 3 bedrooms
$3500 HVAC
$750 for third bedroom conversion.
$750 for dumpster – clean out
$1500 two tone interior paint
$500 update five light fixtures
$1500 level front bedroom
$1500 closing costs
Total Investment: $76,500
Repairs were complete on July 31, 2015 and property was put on MLS. By Aug. 3, we had two full owner finance, price offers as follows:
$1041 per month
30 year note
10% interest rate
$5000 down payment
$99,900 final price
$216/mo. taxes/insurance
Investor’s total monthly income after taxes/insurance is $825.
Most under market value or wholesale property investors I know buy houses with mortgages and rent them out. I used to heavily purchase under market value properties and rent them out, as well.
However, about 10 years ago, one of my real estate investing mentors pointed something critical out to me: John, you’re in San Antonio TX. You have all these blue collar workers you are renting houses to. Why not just owner finance the under market value property to them and let them do most of the repairs?
Wow, what a great idea, I thought! Most of the time, when you purchase a whole sale under market value investment property, you spend $30,000 or more doing the rehab and then you have to work to find good tenants. And we all know some of the disadvantages of rental properties:
Leaking roofs, electrical problems, broken hot water heaters, busted toilets.
Damage by tenants
Tenants that don’t pay and stay in the property
Vacancies
Problems with property managers, not to mention the expense
I had all of these problems at one time or another with my 200 rental properties. However, in 2008, I started to convert all of my below market value rental properties to owner financing.
Here’s how I turned my renters into owner finance buyers:
I sent each renter a letter asking if they wanted to buy the below market value property.
People who wanted to buy it had to send me all of their financial documents so that I could properly qualify them per Dodd Frank rules.
People who did not qualify or did not want to buy the property left when their lease was up.
Those who wanted to buy the property put $5000 down and agreed to my terms – 10% interest, 30 year note, $600-995 per month PITI.
Once the occupants had bought the properties, they were responsible for all of the maintenance of the under market value whole sale property. I no longer had to be a landlord! What a great deal. Pure passive income every month and no landlording.
If I ever have to foreclose on the below market value property, I’m in TX, and it’s easy to foreclose here – a non-judicial foreclosure state.
And that, my fellow under market value investors, is how you can earn 12% per year on a below market value property and never have to do repairs. That is all I do in my wholesale property business in San Antonio TX now – owner financing. Below is a perfect example of how you can earn a high ROI without maintaining the property:
This distressed property sale was completed in August 2015. The market in San Antonio TX has changed greatly in the last year. The market is booming and prices are up across the board, even in fixer upper homes.
$65,000 cash price, $15,000 rehab, resold for $99,900 owner finance, $1041 per month, 7 DOM, 12.9% ROI.
Still, we have CA investors coming into our fine city and buying property investment homes and making 12-13% ROI annually, with no property maintenance.
This property was purchased by a CA cash buyer in July 2015 at 1622 Alametos St. This house is in 78201, and is north of downtown. This region is seeing rapid growth and appreciation.
The investor bought cash, and we completed $10,000 in repairs in 3 weeks:
$65,000 cash price
$1500 carpet removal and adding wood vinyl in 3 bedrooms
$3500 HVAC
$750 for third bedroom conversion.
$750 for dumpster – clean out
$1500 two tone interior paint
$500 update five light fixtures
$1500 level front bedroom
$1500 closing costs
Total Investment: $76,500
Repairs were complete on July 31, 2015 and property was put on MLS. By Aug. 3, we had two full owner finance, price offers as follows:
$1041 per month
30 year note
10% interest rate
$5000 down payment
$99,900 final price
$216/mo. taxes/insurance
Investor’s total monthly income after taxes/insurance is $825.
Final ROI: 12.9%
If you have questions about owner financing property in San Antonio (one of the best cities to invest in real estate) or anywhere else, please contact me.
Many times, the first free class offered by an investing coach is just to lure you into more classes.
It’s better to find an investor who has been in the business for a decade or more and has done 500 or more deals.
You must study the market constantly and stick to your niche.
Many beginners in real estate investing in under market value properties are lured into hiring a real estate coach or guru who promises to teach them how to be a successful investor — for a price.
Most often, these real estate coaches or gurus offer a lower-cost first seminar about flipping houses, which is just selling the next part of the program — the full real estate coaching system that might cost $10,000, $20,000 or more.
Is one of these real estate coaching programs worth it? Generally, beginning investors should use caution when paying thousands of dollars for any type of coaching or guru program. In my view, much of that money would be better spent on buying a good under market value, out of state investment property!
The bottom line on these programs is that a lot more goes into being a successful real estate investor than learning a slick system from an expert.
A lot more goes into being a successful RE investor than learning a slick system from an expert.
These real estate investing coaching programs don’t usually teach you the truth of real estate investing:
Becoming successful in this business takes a lot of work — a lot of work.
Most aspiring real estate investors never even do a below market value deal, let alone make any money at it.
A huge part of being a successful long-term investor comes from developing a stellar reputation in your market.
Being successful in investing comes from establishing a proven team of real estate professionals at affordable prices, including rehabbers, closers, agents, title companies and more.
The vast majority of successful investors are experts in their local area, and that takes years of work in under market value properties.
None of the above can be taught in a five or 10 day class by a real estate investing coach. How I became a successful investor
I have developed a successful investing system of owner financing in Texas that allowed me to financially retire at a young age. I did gain much knowledge and support from free mentors in real estate, but I never paid any coach to teach me anything.
Over the years, I have spent thousands of hours studying my local real estate market. I know exactly what is going on in my zip codes, such as 78201, 78210 and 78207. My knowledge means I know exactly how much to pay for a house and how much to rehab it. That knowledge takes years to develop in the best cities to invest in real estate.
My reputation in my town also took a long time to nurture. People know who I am because I close fast on deals — in 10 days or less — with cash. The best deals often find me because I have spent years becoming a respected expert in distressed houses in my city, and I always do what I say I am going to do.
I discuss my success only to point out that getting to this level took a lot of work, and didn’t come through paying a coach or guru a wad of money to teach me the secrets of investing. Tips to succeed in real estate investing
Here are a few tips to help you succeed at real estate investing:
Partner with an experienced investor to teach you the ropes in your city. Offer to help him or her with business to learn how to become successful. You should never pay someone to teach you.
Ask your investor friends who taught them to be successful.
Focus on a niche. There are many ways to succeed, and fail, in real estate investing. Focus on one or two areas of real estate investing and never deviate. My niche is owner-financed houses from $60,000 to $100,000. That is the only type of property I buy and sell.
If you are in an expensive area, consider buying an out of state investment property in a cheaper area with a team you totally trust.
Find a free mentor who has done at least 500 deals and been in business more than 10 years. Those are the people who can teach you what you need to know — but don’t pay for it.
So in summation: no, don’t hire a real estate investing coach. It’s likely that your money is more valuable to that coach than any knowledge he or she might impart upon you.
I first came to San Antonio as an under market value property investor years ago. Buying inexpensive, below market value investment property has enabled me to live a great, rewarding life. I have been able to make a good income and I continue to invest in under market value property today, which helps to revitalize San Antonio, one of the best cities to invest in real estate. In fact, I know many investors who used to buy only California investment property who now buy here.
Overall, San Antonio is one of the best cities to invest in real estate because of:
A rapidly growing population attracted to San Antonio and Texas low tax, pro business environment
Strong job growth even in down real estate markets. Even in the big downturn in 2008, San Antonio unemployment never went above 7% and now is down under 5%.
Diverse job base. San Antonio is not just about gas and oil. We also have a lot of manufacturing jobs, including Toyota, high tech employment and military bases.
Large population of hardworking blue collar workers, which drivers demand for owner finance properties and rental properties.
Coming into 2016, experts think that we will eclipse total home sales in 2015, which was 24,948, according to the San Antonio Board of Realtors.
Those three key drivers of home purchases – growth in jobs, steady mortgage prices and increasing home value, are not showing any signs of slowing in San Antonio real estate.
In fact, we actually are seeing not enough new homes being built to meet the demand. This is good news for the out of state investment property buyer – it increases demand and prices for our under market value investment properties!
I can definitely tell you that this is true about San Antonio real estate: My below market value investment properties that were $40,000 two years ago are now $60,000, and I usually sell my owner finance houses in under 60 days. Still, my many out of state investment property buyers earn 12% ROI on these under market value houses. Anyone considering, say, California investment property, would be happy with these numbers.
As of now, the median home price in San Antonio, one of the best cities to invest in real estate, is up 6.8% from 2014, but still is only $192,000. Try to buy a house for $192,000 in California!
My best guess is that property values will continue to climb in San Antonio for at least two more years. It is a great time to buy San Antonio investment properties!
I’m a 21 year expert in San Antonio investment properties, and for the first eight years, I mostly did rental investment properties. However, during the market crash of 2008, I converted most of my under market value properties to owner finance investment properties.
That was a great decision! Today I am a financially retired owner finance investment property owner ((San Antonio – one of the best cities to invest in real estate). I have found that owning owner finance investment properties is generally better than rental properties.
If you are not very familiar with owner financing properties, sorry! I’ll explain:
Some people want to buy a home rather than rent, but they lack the credit to get a traditional loan. One option the under market value property investor has is to ‘be the bank.’ That is, you the under market value property owner can write a mortgage yourself to your home’s occupant.
The same terms apply as when you get a mortgage from a bank. Payments are made over time with an interest charge, taxes and insurance must be escrowed.
In my under market value properties with owner financing, I charge 10% interest, 30 year term. My buyers may refinance when they like.
Here are some of the advantages of owner financing for the below market value property investor (pay attention, out of state investment property searchers!):
Owner financed investment property can sell very quickly to your buyer. There is no bank involved, so after you do your due diligence on the buyer and get their down payment, you can go to closing right away. Once I have the buyers’ proof of income, I usually close on my owner finance investment properties in two weeks.
Owner financed investment property has a very good rate of return because you have no maintenance costs.
Owner finance investment property has a lot of peace of mind because I do not worry about what the next repair on the house will cost me.
In Texas, owner finance investment property is easy to foreclose on. If the buyer defaults, I repossess the house in 60 days and resell it.
Owner finance investment property is very attractive as an out of state investment property, because you are not a landlord. You just collect your monthly payment from your buyer electronically each month. It is great passive cash flow for the out of state investor.
The above advantages of owner finance investment property have made me quite wealthy at the young age of 38. I strongly advise all under market value property investors to consider owner financing instead of renting.
Now, if you are an out of state property investor, you might wonder, what would this mean for me? Well, let’s take a look at this San Antonio under market value property:
Address: 2229 W Hermosa Dr. San Antonio, TX 78201
Year Built: 1948
Description: Below market value property sale, 2 beds 1 bath, 769 sqft, lot size: .14 acres yearly taxes: estimated repairs: 35K (convert to 3 BR).
Max After Repair Value: $129,000.00.
Cash Price: $69,900.
Your cash outlay for this under market value investment property would be $105,000. The rate of return for an owner finance investment property here would be ~11%. Your monthly income would be $900 per month after you pay taxes and insurance.
You have no other expenses.
Meanwhile, if you rent this property, you will also net approximately $900 per month, but you will also have a property management fee of approximately $95 per month, plus repair expenses of $500 to $1000 per year. Your ROI will drop to approximately 10%.
Of course, some under market value property investors buy Texas investment properties to enjoy depreciation and writing off expenses for tax purposes, and there is nothing wrong with that! Personally, I prefer the pure passive cash flow from owner financing investment properties.
As a financially retired expert in under market value investment properties in Texas (San Antonio – one of the best cities to invest in real estate), I always purchase my below market value properties for cash flow – never for appreciation. Anyone considering California investment property – take note! Appreciation is a crap shoot. Cash flow is forever.
You can retire young with appreciation, but there is some luck involved. With cash flow investment properties, you can be a master of your own destiny.
Instead, I invest for cash flow in all of my below market value properties. I make at least 11-12% ROI on each of my under market value investment properties in San Antonio, which I find one of the best cities to invest in real estate. Here’s exactly how I do it:
I find an under market value property.
I buy it cash for at least 20% under market value (or I move on)
I do $25,000 or so in rehab.
I sell it with owner financing at 10% interest, $5000 down.
That is it, my friends. That is the simple secret to investing in under market value properties and making millions. Each one of my San Antonio investment properties makes at least $500 per month in passive cash flow. If my houses appreciate, great – I may sell one or two and make $20,000. But that is rare.
Banking on Real Estate Appreciation Gets Investors Hosed
A huge mistake that many new real estate investors make when buying under market value property is that they have no passive cash flow. Their hope is that the houses will go up in value. That is pure speculation, and you only want to speculate when you can afford to speculate.
When I first buy my under market value property in San Antonio, I do about $25,000 in rehab, but I am careful to not overdo it. Over rehabbing is another landmine that many real estate investors step on. Not me. I do enough rehab to get the house sold. I research the under market value properties in the San Antonio neighborhood to get a good idea of how much rehab to do. Once I sell the house with owner financing, it is producing positive cash flow for me.
The advantage of doing owner financing instead of renting is all the repairs are on the buyer. I do not spend a penny on fixing the house after the rehab is done. Cool huh?
The Disaster of Negative Cash Flow
Many real estate investors buying for appreciation routinely low ball their monthly expenses. I’m talking vacancies, repairs, interest on loans, etc. Most new investors will not account for what they do not know, because they so much want to see positive cash flow. Remember – when you underestimate expenses, you are not thinking. You’re feeling. Don’t do that. Buy the best cash flow investment in your area, or another area.
I Never Try to Predict the Real Estate Market
Well, I do try to take a guess on where things are headed (I think we will see a booming real estate market in San Antonio for at least two more years). But I am never going to bank my income on whether or not my educated guess about the local real estate market pans out. No thanks.
It is a lot safer to invest for cash flow and never appreciation. Buying my little under market value properties in San Antonio has made me quite wealthy at a young age. So that is what I recommend most investors do – invest in the best cash flow investment you can find.
Many aspiring under market value property investors cannot buy properties that generate cash flow in their area. San Franciscans and Seattlites, you know what I’m saying right!?
So, many under market value property investors want to diversify their investment property portfolios by investing in below market value properties in other parts of the country. But where are the best cities to invest in real estate for out of state investment property?
Below are some of the best cities to invest in real estate, in my opinion.
San Antonio!
Of course, I live and work in San Antonio, and I am a bit biased. But our investors love San Antonio, live here, and love to invest here. so please indulge me. Real estate investment properties San Antonio rock because of the following:
Strong job market – there are many types of industry here – oil and gas, military, technology, and all kinds of international corporations attracted to the pro business environment, low taxes and lack of red tape in Texas.
Strong population growth: San Antonio is one of the fastest growing cities in the US.
Hard working renters and buyers: We have a large population of blue collar Hispanics here, and they make great renters and buyers.
I usually make 10-13% ROI on my owner financed investment properties in San Antonio TX, with an initial cost of $50,000 to $60,000. This makes San Antonio one of the best real estate investment cities for out of state investment property.
Dallas
Dallas also has a very strong economy and relatively low real estate costs, compared to California. Dallas also sees strong price appreciation, and strong rents compared to property values. Many investors in Dallas can earn almost a 20% return for under market value residential real estate – not bad! Also one of the best real estate investment cities.
Kansas City
I know several investors who have done very well in Kansas City turnkey properties. Prices in this Midwest city are very low and the population is growing quickly. I know people doing well with out of state investment property in Kansas City.
Milwaukee
I also know a bunch of under market value property investors who moved into the Milwaukee market because of rock bottom real estate prices and fairly high rents. If you need a reference for Milwaukee turnkeys, let me know; I know some good ones.
Charlotte
I have read that Charlotte is going to be seeing strong appreciation in the next five years. This could cause your initial costs for investment property to be higher, but if you want appreciation, this could be a good bet. I also know good turnkey companies here.
In short, there are many excellent cities to invest in real estate, you just need to find a good, reliable team on the ground. I know a lot of real estate investors around the country, and am always happy to provide a referral.
I can’t tell you how many people I run into in my under market value properties career who have good jobs and hate their lives.
That is, they make $200,000 or more per year and yet, they work 60 hours per week, sit in dull cubicles for years and years, and wish they had the time to do what they want to do.
The truth is, most of us have been conned into thinking that the ONLY way to live in America is to trade time for money.
Passive income is the way to go – with under market value properties – at least 20% below market value. Who wants to sit bored in a cubicle or office for most of their working life? It’s a form of slavery, even if you are well paid.
But a guy or gal like you…..you make $200,000 per year or more out there in California or Washington….you most likely have some capital stored up so that you can buy under market value investment properties, and STOP trading your time for money. This type of out of state investment property is perfect for you. Passive income fast.
Here is a quick plan to stop trading your time for money TODAY. I am going to assume you have some capital to work with (if you don’t, go find some private investors to borrow money from.
If you live in a high cost area, strongly consider buying an out of state investment property.
This under market value investment property is one that I have scouted out carefully in a very hot part of 78201, which is north of down town San Antonio. It is seeing a lot of young professionals moving in and property values are shooting up. There is a good chance you could get a young professional buying this under market value property from you, or a hardworking blue collar family:
Address: 2229 W Hermosa Dr. San Antonio, TX 78201
Year Built: 1948
Description: Distressed property sale, 2 beds 1 bath, 769 sqft, lot size: .14 acres yearly taxes: estimated repairs: 35K (convert to 3 BR).
Max After Repair Value: $129,000.00.
Cash Price: $69,900 firm.
Exit Strategy: Owner finance 10% interest rate, $5000 down, 30 year note, $1100 per month PITI. Plenty of positive cash flow.
10% ROI no maintenance.
Here’s how you can retire early in one of the best cities to invest in real estate – Buy under market value properties just like these with cash or with borrowed cash. I do $35,000 in rehab. Then resell the house with owner financing to a qualified buyer. Simple!
The above out of state investment property will make you $1000-1100 per month, assuming you fund the deal with cash from your $200,000 or whatever job. In time you will be able to financially retire.
That’s it. Buy, rehab, resell, and collect the cash flow. It IS that simple. Lather, rinse and repeat.
