How to Be a Long-Distance Real Estate Investor

Updated August 5, 2022.

When you invest in a property located outside your home city or state, it can be challenging to find good properties and manage them successfully. However, long-distance investing has many advantages if done the right way.

An Everett property management company can help out-of-state property owners find valuable information for local rental properties that help investors grow their portfolios. So if you're considering stepping outside of your local comfort zone, keep reading to learn about the advantages of becoming a long-distance investor and how to make it work for you!

What Are the Advantages of Long-Distance Investing?

When you invest in hot markets outside of your local area, you increase the growth potential. Investing in an out-of-state rental property gives investors access to markets and opportunities that might not be available in your home market. It can also broaden your geographic reach and help you diversify your portfolio.

Access to Better Real Estate Markets

Investing in long-distance rental properties can give you access to the more lucrative real estate markets in other areas of the country. While your home market is always a good place to start and maintain rental properties, taking advantage of other competitive markets helps build more long-term wealth. 

However, sometimes investing at home isn't the best option. When your options are limited to only local or regional properties, and your market experiences a downturn, investing in property out of state or another area of the same state may be just what you need to maintain consistent cash flow. If history is any indicator, markets will fluctuate throughout the country year after year. 

Property managers say places like Atlanta, Orlando, and Dallas-Fort Worth are a few hot real estate markets. As local full-service property management experts, we can also recommend areas like Everett or Tacoma, Washington, to provide a lift to your return on investment.

Portfolio Diversity

Putting all of your investment dollars into one market can also increase risks for rental property investors. Another benefit of investing in long-distance properties is mitigating risks with properties among multiple markets. 

Investing in out-of-state rental properties can be an excellent diversification option if a market depreciates in one part of the country while another part of the country might just be heating up. Choosing different markets also allows real estate investors to capitalize on different properties that do well in various markets. 

Long-distance investing can be a great way to get into new, more lucrative markets and help you diversify a portfolio. Just make sure you do your homework first! 

What Do I Need to Do Before Investing in Out-Of-State Rental Property?

Long-distance investors should conduct plenty of research and proper due diligence before purchasing a real estate investment property, especially when looking at properties outside of a familiar area.

Residential property managers recommend: 

• Finding a lucrative market. Look for an area where either the market is hot or housing is inexpensive and in-demand. Once you've narrowed your decision down to a couple of areas of the country where you might become a successful investor, it's time to take the next step.
• Studying the neighborhoods. Look at areas with high demand, robust job growth, low vacancy rates, and good schools. These are all things renters are looking for when choosing a rental home. 
• Read up on local landlord-tenant laws. You don't have to be an expert on real estate laws in the new area. Still, it's helpful to familiarize yourself with any Washington state regulations that govern the landlord-tenant relationship.
• Visit in-person if possible. It's not always possible to visit a potential property when you don't live locally. However, touring a neighborhood and rental properties in person can help you make decisions on excellent investments. Sometimes a personal visit can tell you a lot more than photos or a description of the property.

Additionally, a property management company can help a property owner learn about an out-of-state area to avoid buying properties that won't pay off. The best property management companies can also handle the day-to-day tasks of managing your investments since you won't live close enough for a hands-on approach to your properties. Trusting an excellent property manager in the markets where you invest is one of the best ways to expand your portfolio and experience success as a long-distance investor. 

An Everett Property Management Company Helps Long-Distance Investors Succeed!

What does a property manager do? An Everett property management company helps out-of-state real estate investors maximize the potential in the local rental property market. With the right experts to consult with, finding a good property, placing tenants, and collecting the rent in a long-distance market improves your bottom line!

If you're looking for a way to invest in real estate and diversify your portfolio, long-distance investing may be the perfect solution. The Joseph Group knows the Everett and Tacoma, Washington real estate market from our years of management experience! We deliver residential property management services to help local and out-of-state real estate investors handle everything, from tenant screening to rent collection and handling routine maintenance requests. If you're ready to invest outside of your home market, reach out to us soon!