REI Book Review – Unlocking Out-of-State Riches: “Long-Distance Real Estate Investing”

Ever feel like your local real estate market is working against you? Well, I do – as I live in a VHCOL area, and I often can’t do the Buy vs Rent maths right.

Sometimes – maybe the deals are too scarce, prices are sky-high, or the cash flow just isn’t there to make your investment dreams a reality. It’s a common frustration for many investors, that feeling of being geographically boxed in. The idea of venturing into markets you can’t easily visit can feel like a massive leap, perhaps even a bit reckless. That’s where David Greene‘s “Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties“ comes in, and for many, it’s likely to be a real eye-opener.

Greene, who impressively transitioned from a career as a police officer to a thriving out-of-state real estate investor, doesn’t just dangle the possibility of remote investing; he meticulously lays out a practical, step-by-step blueprint. What’s particularly compelling is his core argument: with well-crafted systems, a dependable team, and a data-first mindset, investing hundreds or even thousands of miles away transforms from a daunting prospect into a powerful strategy for building significant wealth and a truly diversified portfolio. This review looks into how Greene’s insights can reshape an investor’s approach, opening up a landscape of opportunities that extend far beyond one’s own zip code.

REI PRIME Book Review Card – Long-Distance Real Estate Investing

Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties

by David Greene (Author)


* Amazon
* Good Reads


What Readers Will Likely Find Most Valuable

* Greene’s clear, systematic way of breaking down how to identify, analyze, and ultimately choose out-of-state markets.
* The incredibly detailed and practical strategies for assembling what he terms a “Core Four” team (agent, lender, contractor, property manager) – a crucial element when you can’t be there in person.
* His savvy approach to leveraging everyday technology to effectively manage properties, often entirely sight unseen.
* The actionable, real-world advice on navigating the complexities of rehabbing and managing rental properties from a distance.
* A clear and inspiring path for scaling a long-distance real estate investment portfolio.

This Book Resonates: The Compelling Case for Investing Long-Distance

What immediately grabs the reader is Greene’s direct challenge to the often-repeated advice to “only invest in your own backyard.” He puts it quite plainly:

This sentiment is likely to strike a chord with many investors who find themselves in markets where achieving positive cash flow feels like an uphill battle. Greene’s philosophy effectively opens up the entire country as a potential investment playground, encouraging readers to seek out markets that genuinely align with their specific financial goals and investment criteria – whether that’s strong price-to-rent ratios, promising job growth, or landlord-friendly regulations.

An early, impactful takeaway is found in his chapter “Don’t Trust Your Gut,” a crucial piece of advice when stepping into unfamiliar territories. He makes a strong case that “Investors focus on numbers; consumers focus on feelings.” This is a pivotal mindset shift. Instead of being swayed by the emotional comfort of proximity, Greene champions a rigorously data-driven approach, demonstrating how thorough research and well-defined systems can significantly diminish the perceived risks associated with distance.

His “Crop Analogy” is a wonderfully effective illustration: just as a farmer wouldn’t try to force peas to grow in soil only suitable for corn, an investor shouldn’t keep trying to force deals in an unsuitable local market when more fertile “fields” (markets) are available elsewhere. The underlying message is powerful: “study farming instead of just copying other farmers”—in other words, master the fundamental principles of real estate investing, and they become universally applicable.

Building an Unseen Empire: Greene’s Insights on Systems, Tech & Team

Successfully investing out-of-state, as Greene meticulously details throughout the book, isn’t about chance; it’s about the deliberate construction of robust systems and an entirely reliable team. His dedication to this foundational infrastructure is arguably one of the most valuable aspects for any reader.

Leveraging Technology (The Power of the Internet)

It’s almost a given that the internet has revolutionized how we do things, but Greene brings this to life with specific applications for the long-distance investor. He highlights that “The Internet has also allowed the ability to buy and manage houses thousands of miles away from you.”

What readers will likely appreciate is the sheer practicality of his advice:

• He provides a clear guide to using everyday online tools like the MLS, Zillow, and Trulia, not just for finding potential deals, but for conducting deep due diligence—accessing public tax records, researching permit histories, and checking crucial local data like school rankings and crime statistics.
• For market research, his straightforward methods for determining prevailing rental rates using resources like Rentometer and Craigslist are eye-opening in their simplicity and effectiveness.
• And when it comes to management, his walkthrough of using smartphone apps for everything from mortgage calculations (he mentions Mortgage Calculator Plus) to secure document signing (JotNot Pro, DocuSign) and detailed property tracking (using spreadsheets like Numbers or Google Sheets) makes remote management feel incredibly accessible. His strong emphasis on video walkthroughs as a “more-than-sufficient substitute for my physically being there” is particularly reassuring for anyone hesitant about buying property sight unseen.

The Indispensable Team (Rules and Relationships & The First/Rest of Your Team)

“Relationships drive success,” Greene asserts, and this principle is the bedrock of his long-distance strategy. Building a trustworthy, competent team on the ground is presented not just as important, but as the absolute linchpin. He focuses on the “Core Four”:

• Deal Finder (Agent/Wholesaler): This role, he states, is “the absolute most crucial, important, and foundational piece of your business.” Readers will find his tips on identifying high-producing, investor-savvy agents—especially those who lead teams or have a significant online presence with credible investor testimonials—to be incredibly useful.
• Lender: Greene does an excellent job demystifying the lending process, explaining the importance of understanding DTI (Debt-To-Income), LTV (Loan-To-Value), and credit scores. His breakdown of different loan types, including conventional mortgages versus portfolio loans (often necessary for investors with more than 10 properties), and his advice on finding genuinely investor-friendly lenders, frequently through credit unions or solid referrals, is both clear and actionable.
• Property Manager (PM): “In my opinion, property management isn’t a luxury. It’s a requirement” for successful long-distance investing, and after reading his reasoning, many investors will likely agree. A good PM acts as your operational arm, handling the day-to-day realities from tenant screening to maintenance calls and, when necessary, evictions. His advice to carefully scrutinize how a PM handles maintenance requests, their complete fee structure, and their specific, nuanced experience in your target neighborhoods is invaluable. His point about “Leveraging your property manager’s knowledge” of local conditions and tenant preferences truly underscores their value far beyond simple rent collection.
• Contractor: This team member, as Greene candidly notes, is often “the most difficult piece to add.” Readers will appreciate his frankness. The advice on obtaining detailed, itemized bids, thoroughly vetting referrals (especially those from fellow investors), and structuring payment schedules with clear incentives for on-time completion and penalties for delays provides a much-needed solid framework. Managing rehabs from a distance presents a significant hurdle for many, and Greene’s emphasis on crystal-clear communication, demanding regular photo and video updates, and even utilizing the PM or agent for on-site work verification, feels both practical and reassuring. He champions a “Partnership Mentality,” and it becomes clear that treating team members as valued partners, whose success is intrinsically linked to your own, is fundamental to making this all work.

Becoming a Local Pro from Afar: Mastering a New Market

Once the support structure is conceptualized, Greene’s insights into truly understanding and strategically navigating a chosen out-of-state market are where the book really shines for an aspiring long-distance investor.

Market Analysis & Helpful Rules of Thumb

Greene places considerable emphasis on understanding Price-to-Rent Ratios as a primary filter, especially for those focusing on buy-and-hold rental properties. His explanation of common rules of thumb offers quick, effective screening tools:

• The 1 Percent Rule: The straightforward idea that “If a property can rent for 1 percent of the purchase price each month, it is highly likely to be profitable and cash-flow positively” serves as an excellent initial filter for market viability.
• The 70 Percent Rule (primarily for flips): The formula (ARV x 0.70) – rehab costs = your maximum offer, gives investors a concrete, conservative starting point for evaluating potential flip projects.
• Readers will also find value in his cautionary words against blindly chasing the 2 Percent Rule without possessing deep local expertise and a tolerance for the higher risks often associated with “war zone” properties.
• The 50 Percent Rule: While he expresses some reservations due to its generality, understanding it as a conservative estimate (that 50% of gross rental income will be consumed by operating expenses, excluding the mortgage) adds another useful, if broad, layer to an investor’s analytical toolkit. Beyond these specific rules, what becomes evident is Greene’s insistence on the crucial practices of tracking local property value trends, anticipating shifts in rental rates by keenly following employment patterns, and deeply “Understanding Your Tenant Pool” to effectively tailor properties and marketing strategies.

Strategic Plays (Working with the Market, Not Against It)

It’s not merely about identifying a promising market; it’s about making intelligent, informed moves within that market. Several of Greene’s strategic insights are particularly compelling:

• Return on Equity (ROE) vs. ROI: This distinction is a significant revelation for many investors. Greene clearly explains: “ROE is determined by taking the amount of money your property makes you a year and dividing it by the amount of equity you have, not the amount of money you originally invested.” Many will realize that as their existing properties have appreciated, a seemingly good ROI might be masking a poor ROE, signaling that their equity could be working much harder for them in a different asset or market.
• Timing the Market: While he doesn’t advocate for risky speculation, his advice on understanding and respecting market cycles feels refreshingly practical. “When prices are rising, you want to be looking for ways to increase your liquid capital… When prices decrease, it’s time to buy new properties.” This proactive, rather than reactive, stance can feel much more empowering to an investor.
• The “Headache Factor” and Opportunity Cost: This section will resonate with anyone who has dealt with time-consuming problem properties. Greene wisely points out, “Some properties are going to cause you much more grief, stress, lack of sleep, and headaches than others.” He encourages a holistic view, urging investors to always weigh potential financial returns against the non-financial costs—the precious time, energy, and stress that a particular property or market might demand.
• 1031 Like-Kind Exchange: His clear explanation of this tax-deferral strategy effectively highlights its particular utility for out-of-state investors who are looking to efficiently move equity between different markets without an immediate tax burden.

Making Deals Happen Remotely: The Art of Acquisition, Rehab, and Maximizing Returns

This is where the strategic framework translates into tangible action, and Greene provides a wealth of practical advice on turning research and team-building into profitable, remotely managed investments.

Finding Materials & Design (Especially for Rehabs)

For investors who don’t naturally gravitate towards interior design, Greene’s advocacy for “R&D (Rip Off and Duplicate)” is a welcome relief. He suggests finding design inspiration from readily accessible sources like Pinterest, Houzz, or even by studying a contractor’s past successful projects. What readers will likely find particularly useful are his strategies for:

• Getting Samples and Ideas from Your Contractor: Leveraging their local market knowledge and hands-on experience with materials that are both cost-effective and appealing to the specific tenant or buyer base in that area.
• Determining the True Value of Upgrades: His distinction between essential “cake” items (like a sound roof, functional cabinets, basic flooring, and fresh paint) and desirable but non-essential “icing” (such as decorative fixtures or high-end finishes) provides a practical framework for prioritizing rehab spending. The “Upgrade Hack” concept is particularly insightful: when an item must be replaced anyway, spending just a little more for a significantly better version (for instance, attractive stainless steel appliances versus basic white for only a marginal increase in cost) can yield a much higher perceived value, attract better tenants, and result in a stronger appraisal. His examples of high-ROI upgrades—like strategic two-tone paint schemes, thoughtful flooring choices in small but visually impactful areas like bathrooms, modernizing showers, and cost-effectively refacing or repainting cabinets—are all incredibly practical. The idea of “Adding Extra Bedrooms” where structurally and economically feasible, to potentially elevate a property into a higher valuation tier, is a strategy many might not have fully considered for remote projects but can offer substantial returns.

Maximizing ROI Beyond the Standard Rehab

Greene encourages investors to think creatively to unlock further value:

• Big Lots Equal Big Opportunity: Many investors might overlook lot size in out-of-state deals, but Greene makes a compelling case for how larger lots can offer future potential for valuable additions, constructing guesthouses or auxiliary dwelling units (ADUs), or even future subdivision, all of which can significantly boost a property’s value and income potential.
• Buying Bad Houses in Nice Areas: This timeless real estate strategy—”location is king”—is especially potent for long-distance investors. As Greene astutely points out, an investor can fix a house, but they can’t fix its location. Distressed properties situated in desirable neighborhoods often come from highly motivated sellers and typically face less competition from conventional homebuyers, creating prime opportunities for savvy investors who have a reliable remote rehab system in place.

Unconventional (Yet Effective) Tricks to Find More Deals Out of State

Readers will appreciate that Greene shares several innovative avenues for sourcing deals that extend beyond passively waiting for MLS alerts:

• Real Estate Owned (REO): Targeting bank-owned properties that have completed the foreclosure process.
• Short Sales: Navigating the often complex but potentially rewarding process of buying from sellers who owe more on their mortgage than the property is currently worth (this requires bank approval and patience but can lead to significant discounts).
• Notice of Default (NOD): Proactively reaching out to owners who have just received a notice of default, signaling the beginning of the foreclosure process and often a high level of motivation to sell.
• Half-Finished Homes: Taking on projects that were abandoned mid-rehab, which frequently require all-cash offers but can offer savings on initial demolition and provide clearer insight into existing structural issues.
• His candid thoughts on Leveraging the Listing Agent (by allowing them to represent both sides of the transaction in specific, disclosed situations) and Paying Your Real Estate Agent a Bonus to incentivize them to proactively tap into their office network for off-market deals are creative, actionable strategies that many investors may not have previously considered.

MST Card: “Long-Distance Real Estate Investing” Recap

To distill Greene’s core philosophy for achieving success when investing out-of-state, here’s how his principles can be viewed through the Mindset, Strategies, and Tools (MST) lens:

Mindset (The Foundational Beliefs You’ll Need to Cultivate)

• Borderless Investing: Truly believing that your local market doesn’t have to define your investment limits; valuable opportunities exist nationwide, waiting to be found.
• Data Over Gut-Feeling: Committing to rely on objective numbers, thorough market research, and proven systems, rather than emotional comfort or proximity bias, especially when evaluating unfamiliar markets.
• Your Team is Your Greatest Asset: Recognizing that sustainable success in long-distance investing is almost entirely built on finding, trusting, and nurturing reliable, skilled partners on the ground. This means adopting a true “partnership mentality.”
• Systems Thinking as a Default: Understanding that long-distance investing thrives on creating and adhering to replicable, efficient processes for every single stage, from initial deal sourcing to ongoing property management.
• Embracing Calculated Risk & Heightened Due Diligence: Accepting that investing from a distance inherently requires an even more thorough and meticulous vetting process for deals, markets, and every single team member.
• Proactive, Not Just Reactive, Problem Solving: Developing the foresight to anticipate the unique challenges of remote ownership and building robust systems to address them before they escalate into critical, costly problems.

Strategies (The Actionable Methods Readers Will Find Key)

• Market-Agnostic Selection Process: Learning to choose investment markets based on hard data (like favorable price-to-rent ratios, positive job growth figures, and landlord-friendly laws), rather than mere geographical convenience.
• Systematic Remote Team Building: Developing and refining a consistent, repeatable process to find, thoroughly vet, and effectively manage your “Core Four” team members (agent, lender, PM, contractor) using a combination of referrals, diligent online research, and structured, insightful interviews.
• Aggressive and Smart Technology Leverage: Committing to the full utilization of available online tools, mobile applications, and video communication for every feasible aspect of market research, inter-team communication, secure documentation, and efficient remote management.
• Standardized Rehab & Management Protocols: Creating crystal-clear scopes of work for renovations, demanding detailed itemized bids, insisting on regular photo and video verification for rehab progress, and establishing unambiguous, consistent communication channels with property managers.
• Ongoing ROE (Return on Equity) Optimization: Making it a standard practice to regularly assess your Return on Equity for each property, enabling informed decisions about when to hold, sell, or refinance to redeploy capital for maximum efficiency and growth.
• Targeted and Creative Deal Sourcing: Moving beyond passive MLS searches by actively employing specific, proven strategies (such as targeting REOs, short sales, NODs, and strategically networking) to uncover deals that are particularly well-suited for long-distance execution.

Tools (The Essential Resources That Make It All Work)

• Online Research & Networking Platforms: Consistent use of MLS access (often facilitated via your real estate agent), Zillow, Trulia, Rentometer, Craigslist, and especially BiggerPockets (for its invaluable networking opportunities and rich educational content).
• Communication & Collaboration Technology: Your smartphone effectively becomes your mobile command center, powerfully augmented by email, video conferencing tools for team meetings, and potentially project management applications for overseeing rehabs.
• Essential Financial & Legal Documentation: Utilizing standardized loan applications, employing well-drafted and legally sound lease agreements, creating detailed Scopes of Work (SOWs) for contractors, and having access to reputable 1031 exchange intermediaries when the strategy calls for it.
• Local Market Data Sources & Verification: Leveraging digital access to county records (for property taxes and permits), local employment trend reports, and school district rating websites to verify and deepen market understanding.
• Your “Core Four” Team (Agent, Lender, PM, Contractor): Recognizing that these key individuals are not just service providers; they are your most valuable tools, acting as your informed eyes and ears on the ground.
• Spreadsheets & Specialized Calculators: These are indispensable for meticulous deal analysis, accurate ROI/ROE calculations, and detailed budget tracking (e.g., dedicated mortgage calculators like Mortgage Calculator Plus, and flexible spreadsheets via Numbers, Excel, or Google Sheets).

Final Thoughts: A Blueprint for Borderless Investing

David Greene’s “Long-Distance Real Estate Investing” is more than just a book; for many readers, it will feel like a practical toolkit for liberation from geographical constraints. It systematically demystifies the often-feared process of building a successful rental portfolio far from home, replacing apprehension with a clear, actionable, and confidence-inspiring plan. What shines through is Greene’s unwavering emphasis on building robust systems, smartly leveraging technology, and recognizing the absolute necessity of a reliable, well-chosen local team. He doesn’t just present theories; he details the how-to, often generously sharing his own experiences – both successes and mistakes – which lends his advice a refreshing layer of credibility and relatability.

For any investor feeling confined by the limitations of their local market, or for those looking to achieve greater portfolio diversification and scale their operations, this book offers the essential wisdom and practical steps to make that leap. It has the potential to transform an investor’s thinking from “Can I really do this?” to “How soon can I get started implementing these strategies?”

The core message that lingers is that the primary barrier to successful long-distance investing is often not external circumstances, but one’s own mindset. With Greene’s well-articulated approach, the entire nation truly can become an accessible investment playground. For those willing to put in the work to build the systems he outlines, this book could very well be the key to unlocking a new level of investing freedom and success.

FAQ: 10 Key Insights from David Greene’s “Long-Distance Real Estate Investing” That Might Surprise You

Reading “Long-Distance Real Estate Investing” is likely to bring several “aha!” moments, challenging conventional wisdom. Here are ten key ideas and facts presented by David Greene that many readers might find particularly insightful or surprising: