A question that has been coming up a lot lately is, “Should I Invest in real estate in other states?” This is actually a great idea for those people that are living in overpriced markets where cash-flow is virtually non-existent, but there is a price you’ll pay for going out of state.
Investing in properties that you can’t simply hop in the car and drive to, requires a steady plan and an impeccable team. If you don’t have a solid management company, your experience could turn into a nightmare. I recommend to anyone considering investing in properties out of state to also make sure that you have a trusted friend or family member within reach of your property. Unless you can personally oversee your manager remotely somehow, it is a good idea to check up on your properties and management periodically. While I learned this the hard way, you don’t need to. You can use your tenants to keep you posted on the effectiveness of your management company, and your building’s neighbors to let you know about your tenants. Having someone you trust around, though, can give the peace of mind you will want with a property located far away.
These lessons, which I learned the heard way, should make life a bit less stressful for the rest of you who want to buy a property far away.
Overall, investing in other states can be very profitable, but there are costs. Having an investment property in a place that you can easy access makes life that much easier on you.
The best place to find good investments is typically in your own backyard. Given the current market conditions, now is as good a time as ever, to find deals where you live. With the massive influx of foreclosures and properties that owners can’t keep up on their payments on, bargain hunters can snap up great income properties virtually anywhere in the country if they have the skills to find them.
BiggerPockets has helped thousands of investors learn how to do this (for free, of course)! To start learning yourself, just jump on to our real estate investing forums.