The ways of making money in real estate are extremely vast. You may invest in a local real estate market, or maybe you might consider long distance real estate investing. There are many reasons why some investors prefer out of state real estate investing. Nevertheless, the main reason is making money in real estate. In this blog, we will explore how to proceed with long distance real estate investing, how to find investment property in another real estate market and finally, how to own a positive cash flow property. Are you curious to know more? Just keep on reading.
#1 Long Distance Real Estate Investing or Out of State Real Estate Investing
Long distance real estate investing can also be referred to as out of state real estate investing. Shortly put, long distance real estate investing, as the name suggests, is about buying income generating assets that are in a real estate market far from your local one. For example, such a market might be situated in a different city or state. The biggest advantage of having diversified investments is that if one real estate market crashes, income generating assets in another will be able to back you up. Therefore, if the selection of diversified investments is done properly, the real estate investor will have all the chances of making money in real estate markets. But how to find investment property in another real estate market?
#2 Long Distance Real Estate Investing: Researching the Real Estate Market
The first step of long distance real estate investing is a proper selection of the real estate market. So, how to choose the real estate market? Well, first of all, the decision-making process strictly depends on your real estate investing goals. For instance, do you plan on investing in rentals or in fix and flips? It is important to state that a market for flipping houses may not be appropriate for rental properties and vice versa. If you decide to go with rental properties, there are several factors you should have a close look at. For example, check the laws and regulations, trends as well as price-to-rent ratios. The investor should conduct a comparative market analysis in order to invest in the best diversified investments.
The results of conducting the real estate market analysis or comparative market analysis, as they call it, will provide the investor with useful information. He/she will be able to understand the state of the market- if it favors the buyers or the sellers. Moreover, the investor will be able to understand if it is suitable to start a real estate investing business while implementing the chosen investment strategy. Interested to learn more about comparative market analysis? Make sure to read “Conducting Comparative Market Analysis: An Art or a Science?”
#3 Long Distance Real Estate Investing: Researching Income Generating Assets OR How to Find Investment Property
After a specific real estate investing market has been selected, it is time to find the best investment property. Once again, thanks to real estate investment analysis, the investor will be able to know a property’s actual market value. Yet, with hundreds of income generating assets, to find a perfect property manually is hard. That is why using an investment property calculator is a must. Moreover, if you plan on rocking new real estate investing markets, it is advised to use Mashvisor’s investment property calculator. With this real estate investment tool, you will be able to conduct both comparative market analysis as well as investment property analysis. Additionally, the investor will be able to select real estate comps in no time. Another great thing about the investment property calculator is that you do not need to guess how much to charge tenants. The tool will provide all the numbers.
In a nutshell, using the investment property calculator will allow a real estate investor to buy the best investment property. Ready to find out even more about the investment property calculator? Make sure to read “Investment Property Calculator: Do You Need One to Make Money in Real Estate?”
#4 Long Distance Real Estate Investing: Professional Rental Property Management
Of course, when dealing with long distance real estate investing, it is always great to have someone trustworthy who is able to provide a home inspection and further property management. Yes, we are talking about professional rental property management companies, which will take full care of your income generating assets. So, what is the best case scenario when operating with a professional rental property management company? Well, your task is to invest in a property and the rest is done by the managers you hire. What tasks are we talking about? Well let’s explore:
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Maintenance
Most of the time, tenants choose a property that is in perfect shape. That is why maintenance is of high importance. In most cases, after the purchase, some type of fixing should be done in order to make the property attractive to potential tenants. The best case scenario is to have a home inspection in order to know in advance what exactly should be fixed. Once this is all done, you should keep an eye on the maintenance if you plan on keeping your tenants long term. Of course, when you hire a rental property management company, you may forget about this issue as from now on, this is their task. Sure enough, checking on your investment property every once in a while is important.
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Finding Tenants
In general, finding good tenants is not as easy as many think. Yet, when you have hired a professional property management team, they will be able to complete this task for you. The fact that rental property managers can find you good tenants is no secret. Such companies use appropriated channels, advertisement as well as know good tenant screening tools. In one word, you can be calm when it comes to finding tenants. Interested to see what tenants your property may host if you skip the background check? Then make sure to read “8 Types of Tenants to Beware of When You Rent Out Your Property.”
Conclusion
Long distance real estate investing is possible. Moreover, many real estate investors are already busy with out of state real estate investing, simply because these markets bring bigger profits. Mashvisor can help you out with long distance real estate investing. To learn more about how we will help you make faster and smarter real estate investment decisions, click here.