Out-of-State Investing: How to Build a Team You Can Trust

norcalpropertiesan
Sep 10
5 min read

The Investor’s Dilemma

Investing in your backyard has its perks — you know the neighborhoods, the schools, and maybe even the contractors by first name. But what if the best returns aren’t in your city? What if markets like Oklahoma City or Columbus, Ohio outperform your hometown?

That’s where out-of-state investing comes in. It unlocks better deals, stronger cash flow, and new opportunities. But here’s the catch: 👉 Success hinges on your team.

Without trustworthy boots on the ground, even the best property can turn into a money pit. In this guide, we’ll explore how to build, vet, and manage a reliable local team so you can invest confidently — even from hundreds or thousands of miles away.

1. Why You Need a Local Team

Some investors try to self-manage from afar. It almost always ends badly.

Challenges Without a Team:

Slow Response Times: A leaking pipe won’t wait for your flight from California to Oklahoma.
Tenant Issues: Screening, rent collection, and evictions are hard to handle remotely.
Contractor Overcharges: Without oversight, repair costs balloon.
Missed Deals: You lose out if you can’t act fast on opportunities.

Key takeaway: Out-of-state investing is possible only if you treat your team as the core of your business.

2. The Core Members of Your Out-of-State Team

A successful out-of-state team covers acquisition, management, maintenance, and compliance.

Team Member	Role	Why They’re Essential
Real Estate Agent / Broker	Finds properties, negotiates deals, knows local trends.	They know the neighborhoods, comps, and off-market deals.
Property Manager	Screens tenants, handles leasing, manages repairs.	They are your “CEO on the ground.”
Contractors / Handymen	Handle renovations, repairs, and ongoing maintenance.	Protects your investment and ensures property value.
Lender (Local or National)	Provides financing options tailored to investment properties.	A good lender makes or breaks your deal.
Insurance Agent	Advises on landlord, liability, and hazard policies.	Markets differ in risks (e.g., tornadoes in OKC, snow damage in Columbus).
CPA or Tax Advisor	Guides on multi-state tax issues, deductions, depreciation.	Prevents costly mistakes with IRS and state taxes.
Attorney (Optional)	Helps with contracts, evictions, and legal disputes.	Especially useful in stricter tenant-law states.

3. How to Find Your Team Members

1. Networking with Other Investors

Real estate investor associations (REIAs) in OKC, Columbus, and beyond.
BiggerPockets forums and Facebook investor groups.

2. Referrals from Agents & Property Managers

Ask your agent who they’d trust for property management.
Ask your property manager which contractors they prefer.

3. Online Research

Google “Best property managers in Oklahoma City” and read reviews.
LinkedIn can help vet professionals.

4. Test Relationships with Small Tasks

Before hiring a contractor for a full rehab, try them on a small repair.
Before committing to a property manager, see how they handle your inquiries.

4. How to Vet & Select the Right People

Not everyone who wants your business deserves it. Here’s how to filter the good from the bad:

Real Estate Agent Vetting Questions:

How many investment properties have you sold in the last year?
Do you work with investors regularly, or mostly homeowners?
What neighborhoods do you recommend for rentals? Why?

Property Manager Vetting Questions:

What’s your average vacancy time between tenants?
How do you handle late rent and evictions?
Do you own rental properties yourself? (Great sign if yes!)
What technology do you use for reporting?

Contractor Vetting Checklist:

Licensed, insured, and bonded?
Can provide at least 3 recent investor references?
Do they provide written estimates with timelines?

5. Communication Systems for Remote Investing

Distance can kill deals if communication isn’t structured.

Tools to Use:

Slack / WhatsApp → Quick updates and group chats.
Trello / Asana → Track repair or rehab projects step by step.
Dropbox / Google Drive → Store leases, inspection reports, and invoices.
Property Management Portals → Many managers offer portals for statements and maintenance requests.

Best Practices:

Set weekly or monthly check-ins with property managers.
Require photo or video updates of major repairs.
Establish escalation protocols (e.g., repair limit of $500 before requiring approval).

6. Protecting Yourself as an Out-of-State Investor

Always Have Backups

At least 2–3 contractors you can call.
A backup property manager in case the first doesn’t perform.

Get Everything in Writing

Contracts for repairs.
Management agreements with clear termination clauses.

Financial Controls

Require invoices and receipts for all expenses.
Use separate bank accounts for rental income.

Insurance Coverage

In OKC → Wind, hail, tornado riders.
In Columbus → Flood and snow-related damage considerations.

7. Building Long-Term Relationships

The best investors don’t just hire vendors — they build partnerships.

Pay promptly: Good professionals will prioritize you.
Be fair: Don’t nickel-and-dime, but don’t overpay blindly either.
Show appreciation: A thank-you note or holiday gift builds loyalty.
Think long-term: High turnover in your team = higher risk for you.

8. Common Mistakes Out-of-State Investors Make

Hiring the cheapest contractor. → Often leads to rework and delays.
Not checking references. → A quick call could save thousands.
Micromanaging from afar. → Leads to frustration and poor relationships.
Failing to set expectations. → If you want photos after every repair, say so upfront.
Relying on one person. → Always have backups in case someone disappears.

9. Case Study: Out-of-State Investing Done Right

Scenario: Sarah, a California investor, buys a duplex in Columbus for $280,000.

Agent: Found her property in Franklinton, explained the neighborhood’s revitalization potential.
Property Manager: Handles leasing, sets rent at $1,400 per unit.
Contractor: Completed $15,000 in cosmetic upgrades (new flooring, paint, fixtures).
Insurance Agent: Added a snow-related damage rider.

Result: Cash flow of ~$600/month after expenses, appreciation of 8% in 2 years.

Key takeaway → Sarah couldn’t have done this without her team.

10. Frequently Asked Questions (FAQs)

Question	Answer
Who should I hire first: agent, manager, or contractor?	Start with a property manager or investor-friendly agent. They often have networks of contractors and lenders.
How do I know if a property manager is good?	Look for low vacancy times, transparent reporting, and positive investor references. Avoid managers who also represent tenants (conflict of interest).
Should I visit the market in person?	Ideally yes, at least once. But with today’s tech, many investors buy sight-unseen after thorough due diligence and a trusted team.
How do I prevent contractor scams?	Never pay 100% upfront. Use milestone payments tied to progress, and require photos/videos of work completed.
What’s a fair property management fee?	8–10% of collected rent, plus leasing fees (often one month’s rent). Negotiate based on portfolio size.
How do I manage taxes across multiple states?	Work with a CPA who understands multi-state real estate. Often, you’ll file in your home state + the state where the property is located.
What if my property manager isn’t performing?	Have a backup lined up. Most management contracts allow for 30–60 day termination with written notice.
How do I scale as an out-of-state investor?	Document processes, standardize communication, and replicate your team model in multiple markets.

Your Team is Your Superpower

Out-of-state investing isn’t about geography — it’s about systems and people. If you build a reliable, trustworthy team, you can invest confidently in Oklahoma City, Columbus, or any other promising market.

The right team gives you:

Speed (fast action on deals)
Trust (knowing your properties are in good hands)
Scale (ability to grow beyond your backyard)

Bottom line: Don’t just invest in real estate. Invest in your team.