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I have owned property out of state. The key is property management. NO ONE will look after your investment/money better than yourself. Also, being an outsider, you may not know the ins/outs of the market. Generally, single family homes are not a good investment. Look for 5+ unit buildings. Why? Cash flow. The price of the buildings are based on cash flow and interest rates.
I have done it...Advised and helped clients do it...Multi-Unit, Res and commercial
I would do it again...my clients love me for it...and great management like Mike says...is the key
To be quite honest, everyone may have a different experience to investing out of state. However, I believe that if you've done your due diligence and understand all the necessary fundamentals of investing, then you can successful invest outside your own back yard.
Again, the areas in which you choose to invest, along with your investment strategy, will all determine if investing out of state is for you.
My company sells investment properties as a full time job, we do not sell locally. With that said, each investor may want something different, like cash flow, appreciation, tax benefits, or all of the above.
Truth be told, when dealing with multi-family units (4+), do your research on cap rates and vacancies. Although on paper they seem like great investments, they can deteriorate your pocket book faster than you can believe (not always the case).
And to answer you question completely, and in accord with Michael, property management is the key to successful investing. Vacancies kill cash flow and your out of pocket expense. Good luck, and if you have any other questions about investing abroad, feel free to contact me.
Hi WardD,
where abroad do you invest? I've been considering Puerto Rico, which is not exactly abroad, but I'm having second thoughts, but honestly, I do not keep up with the global markets. Shed some light?
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Is out of state investing something that you or your clients would consider? Why or why not?
Pam Schaid, "Pam Schaid"
Real Estate Agent
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Many investors are looking to other places to invest because their market is so overpriced and they can not find postive cash flow properties even with the high amount of foreclosures. Do you know anyone that might be looking for this scenario? What are the reasons why you think they would not consider it?
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