I’ve heard countless horror stories about people going to Arizona or Texas to buy real estate because they currently live in an expensive location and they can not afford local property.

If you are buying 30-50 units or more, then I could understand going out of state as you’ll have economies of scale and you can properly pay your team to do a good job.

If you are buying two units in Arizona with 1,200 a month in total gross income with a mortgage of 750 + property taxes of 100 and then repairs / vacancies.. how much can you honestly pay the property manager and still be in the green?

Not only that but you have ZERO competitive advantage over other investors, unless you grew up or spent much time in that area. Likely do not know the local landlord / tenant laws, vacancy rates, and overall tenant demographic like you should prior to parking your life savings into a property that you do not truly understand.

Remember, investing is only fun if you make money and if you “invest” in something you do not understand you are not investing, you are speculating and most speculators lose money.

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