A recent article (https://www.anthonybuterateam.com/advantages-of-real-estate-rentals-in-pennsylvania/) shared by our Keller Williams Realty colleague out of Philadelphia, Ryan Bullock, provides some great insight to the world of real estate investing and it’s benefits.
Let’s go deeper now and tackle an interesting subject within the real estate investing space… being an out-of-town landlord, and is it the right choice for you.
Real estate investing in different markets can provide endless possibilities, so long as you are willing to invest your hard-earned money in an area you don’t reside.
For example, here in Rochester, NY, we work with investors from all over the world who are attracted to our lower priced, high cash flow market. Lower priced is a relative term, but compared to bigger metro or luxury markets where seven figures are thrown around regularly within real estate transactions, here it’s possible to get performing assets for under $100k and a decent sized portfolio of multiple properties for “just” $1 million!
Whether you’re looking at Rochester, the Finger Lakes region, or somewhere else, it’s important to consider these aspects:
Property Management– Who will be attending to the property and the tenants in your absence? Finding an experienced property manager in the location you are investing in is key. Make sure they have the experience and systems for dealing with absentee owners. Don’t be their first client!
Budgeting – Whatever your budget for house maintenance and management is, you should increase it. Better to be conservative than surprised, so plan accordingly and make sure the numbers still make sense before you invest.
Landlord/Tenant Laws – There may come a time when you need to evict a tenant. Eviction laws vary by region, so you’ll want to know how the process is handled and how much it costs.
Passive & Patience – By being an out-of-town owner, you lose some of the control you would have with a more local investment. The investment becomes largely passive, which can be stressful. Also, be prepared for some bumps in the road to success. If patience isn’t your strong suit, you may want to take this into consideration before pulling the trigger!
Market Data and Resources – A good, local Realtor will be able to partner with you to help ensure you are making profitable investments. Don’t try it alone, especially when you don’t have boots on the ground. Find a Realtor with the experience in the type of investments you are searching for and put them to work!
It’s a lot to think about, but if you are still interested in being an out-of-town investor, I invite you to take a look at Rochester, NY, starting here at www.anthonybuterateam.com.