POSTED ON May 12, 2022 7:45:00 AM / by Real Property Associates

The Complete Guide To Successful Long-Distance Real Estate Investing

There are many reasons why long-distance real estate investing makes sense. This strategy allows investors to buy rental properties in cities outside of where they live while generating more revenue! In addition, it's a great way to diversify your portfolio and gain exposure to different markets. 

However, if you're interested in long-distance real estate, you'll need to learn how to deal with the challenges involved. Working closely with a professional who knows the local industry can be a big help. Our Bellevue property management team has insights today to help property owners maximize returns when investing out of state!

Growing an Out of State Portfolio

While many real estate investors choose to invest in local markets, others prefer to look further away to build a more significant portfolio. Long-distance investing is an excellent way to capitalize on different markets and mitigate the risk of buying investment properties in only one market. 

In addition to providing you with access to alternative markets for residential homes, long-distance investing also offers you the chance to diversify your portfolio. When you invest in different parts of the country, you can avoid being overly reliant on any one area.

Closed up tiny house model on the wooden floor or board with light green background

While long-distance investing does require additional planning and research, it has many benefits for property owners willing to take a step outside of their home markets. For example, you can invest in properties with more flexible municipal zoning restrictions or lower property taxes. Additionally, you can invest in less saturated markets that offer higher yields.

Do Your Research Before Leaping

Success with long-distance real estate investing requires plenty of research. Property investors need to find a growing market with a high demand for rentals. They also need a market with good school districts, low crime rates, and excellent local amenities for residents.

It's easy to get caught up in the excitement of finding a great deal, but you must remember to do your due diligence. After you've found a market that meets these criteria, run the numbers for a potential property to find out if it's a good fit for you. The best way to do this is to visit the area to check it out in person. You can also ask a property manager in that city for insights. 

Partner With a Property Manager

Partnering with a local property manager can greatly increase your success when investing in real estate long-distance. A local property manager will have insights into properties, neighborhoods, crime statistics, what renters look for, market research, and more. 

Days ahead, suburban houses from Sunset real estate

The right property managers can offer valuable tips and advice as you invest in their market from out of state or another city. Working with a local property management company can ensure that you get the most out of your investment and make the most informed decisions for long-term revenue.

Crunch The Numbers

Before buying a property out of state, make sure to crunch the numbers! That means identifying estimated monthly expenses, potential income, and setting an ROI goal. It's essential to have an accurate estimate of what it will cost you to maintain and operate a property over time and what you can expect to earn on your investment.

To calculate the ROI of a potential investment, consider the following:

  • Monthly property expenses 
  • Average rent rates in the area
  • Upfront investment costs
  • Property taxes 
  • Maintenance costs
  • Utilities

Additionally, be sure to research the market conditions in your area before investing. If there are signs of an impending recession or other economic downturns, it may be wise to wait until conditions improve before making a purchase.

Learn How to Get Started in Real Estate Investing With a Bellevue Property Manager

Learning how to get started in real estate investing can be challenging, but it is possible with the help of a good property manager and some sound advice. 

Operating a rental property is a long-term strategy and should be treated as such. Rental property owners must be patient and have a growth plan, including a plan that includes long-distance real estate investments. A good property manager becomes your partner in this venture and makes sure each property in your portfolio performs to its maximum potential. With the right managers, investors enjoy more long-term passive real estate investing income when every property does its best.

With plenty of experience in the real estate industry, the property managers of Real Property Associates are experts at finding and managing quality properties in the Bellevue market. We work with local vendors to get the best deals on products and services, and we have access to insights about the market that help investors experience better ROIs (whether they live locally or not).

Contact us today to learn more about how our team can help you succeed as a long-distance investor in this area!

Get more tips about successful real estate investing. Download our free ebook, the "How To Invest in Real Estate Guide."

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