How to Generate $7K Monthly Cash Flow with Out-of-State Properties

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This implementation guide is based on episode 381 of the Real Estate Rookie Podcast featuring Bailey Kramer, who rapidly built a successful real estate portfolio generating significant cash flow by investing remotely.

Define Your Investment Objectives

Begin by clearly outlining your investment goals. Bailey prioritizes immediate cash flow, making decisions to support financial freedom early in his journey.

Action step: Write down your primary investing goal (cash flow, appreciation, tax advantages) to guide your property selection and strategy.

Identify Emerging Markets Remotely

Bailey successfully invests in markets like Terre Haute and Kokomo, Indiana, where lower competition leads to higher returns. He selects markets based on factors like affordability, job stability, and demand.

Action step: Research comparable markets using criteria such as population size, median home prices, average salaries, and employment opportunities.

LeverageReverse ReviewStrategy

Use customer reviews on platforms like Airbnb to assess potential investment locations. Reviews provide authentic insights into market demand, guest preferences, and location suitability.

Action step: Choose potential markets and analyze Airbnb reviews to pinpoint high-demand areas and avoid problematic neighborhoods.

Build Your Remote Team

Bailey emphasizes the importance of establishing a trustworthy team, including real estate agents, property inspectors, and contractors, who are crucial for remote investing.

Action step: Contact local real estate agents and professionals via recommendations, Google searches, and platforms like BiggerPockets to assemble a reliable team in your target market.

Explore Creative Financing Options

Utilize creative loan products, such as DSCR (debt service coverage ratio) loans, which rely on property performance rather than personal income documentation.

Action step: Research DSCR lenders online, contact multiple institutions, and secure preapproval to streamline your purchasing process.

Strategically Manage Calendar Availability

Bailey maximizes profits by strategically managing calendar availability to accommodate long-term bookings from insurance companies and midterm tenants.

Action step: Keep your rental calendars open for extended stays, setting shorter booking windows (seven to 14 days out) to capture lucrative long-term opportunities.

Capitalize on Midterm Rental Opportunities

Insurance companies provide high-value midterm bookings, offering a consistent, profitable tenant base.

Action step: List your properties on platforms like Furnished Finder, and proactively build relationships with insurance housing companies to secure steady midterm rentals.

Use Data-Driven Property Analysis

Perform detailed cash flow analysis and risk assessment before purchasing. Bailey’s careful approach ensures each investment aligns with his cash flow goals.

Action step: Use real estate investment calculators to evaluate rental income potential, operating expenses, and mortgage costs.

Efficiently Scale Your Portfolio

Once your first property is stabilized, reinvest profits and equity to rapidly grow your portfolio. Bailey recommends repeating successful strategies and continually refining your processes.

Action step: Review your portfolio quarterly, reinvest cash flow, and plan future acquisitions based on proven results.

Final Thoughts

Ready to dive deeper into Bailey Kramer’s proven strategies? Listen to episode 381 of the Real Estate Rookie Podcast for a detailed breakdown of how to achieve killer monthly cash flow through remote investing!

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