Investing in a market far away from where you live

Investment StrategyBuyingProperty ManagementOut of State InvestmentProperty Investment
Siva Kolappa
Posted On : 05/17/2019

You have decided to buy your first investment property, but where you live properties are too expensive and hence do not cash flow well. Worry not! You have the option to buy in several outstanding markets that are flush with cash flowing properties. Please refer to this article that discusses how to identify good markets to invest in.


Once an investor identifies a market to invest in, the next question they run into is this : How will they able to buy and manage a property far away from where they live?


The best way to remotely buy and manage a property is to hire a reputable property management firm.

This allows the owner to completely outsource the following tasks : Marketing, Managing repairs, Tenant Screening, Tenant Management, HOA communication and maintenance. There is a cost for this. Typically, property managers charge 8%-10% of rent collected as a fee. Outside of this, they also collect a leasing fee every time a new lease is written and this is typically half the first month rent. Paying these fees is totally worth it as it completely removes the owner from the day to day affairs and the owner can focus on living their lives and buying more properties. This also gives the owners the freedom to own in any market they choose regardless of where they live. Millions of real estate investors do this on a regular basis. On a monthly basis, the owner will receive a statement of income and expenses with updates and the rent minus expenses typically gets deposited in a bank account of investors choosing.

 

A property manager can make or break ones investing experience. Hence, good care should be taken when hiring a property manager. One good place to lookup property mangers is www.narpm.org.


1 Comments
Kristopher Franks
Kristopher Franks6 months ago
Excellent advice. Spend the time interviewing your property management company and get testimonials. They are the key value driver over the term of the investment. Even if you paid too much for your property or had a bad experience, a good PM can turn that experience around and make your investment profitable.