Out of State Investing Pros and Cons

[Joshua Poitras]

To my out-of-state investors, what do you believe are the advantages and disadvantages to out of state investing. Or even long distance investing? 

[Russ Kitzberger]

Some advantages

Truly passive income

Ability to write off visits to the property/location

Low chance of impromptu or emergency situations from tenants/users

The diversified market risk from your primary residence market

It seems most disadvantages are related to non-passive activities or the desire to participate in the management or care of the property. There is also the chance to not be well informed, however, that risk can be mitigated with good counsel.