Today it’s easier than ever to buy property outside of the area that you live and know. There are multitude of tools, websites and information online to help analyze areas of interest and the overall market performance. Start with your investment objectives such as income versus appreciation, funds allotted, type of properties, financing options and then start your research. Once an area or areas are narrowed down it is recommended to start making some phone calls to local realtors or property managers. I suggest property managers because they will know the rental market better and they are not focused on sales, just information. The next step would be to visit the area to get a feel for the communities, traffic, schools etc.. Nothing is better than actually visiting the area you are going to invest in. Visiting an area is not necessary but we highly recommend it.
- You can be successful investing outside your home market
- Start with writing down and knowing your investment objectives
- Research. There are a multitude of tools, websites and information such as House Canary and Bigger Pockets
- Choose the area of interest
- Communicate with local property managers and realtors
- Visit the area to get a ‘real” feel of the communities, schools and the rental market
- Interview Property Managers
- Start the buying process
Backbone of Success
Many investors do not realize that the biggest difference between success and failure will be your property manager. Yes, buying for the right price and in the right area based on your investment strategy is extremely important, however markets change but good old fashion work does not. I cannot stress this enough. Please interview property managers and get a feel for their experience, licensing, staff, pricing and their investment acumen. The world is becoming smaller and information is greater. Large investors to small investors are buying investment properties all throughout the United States. It is more than a trend, it is happening every day and with a good amount of success, so don’t be afraid to take the jump.