Real estate is a great investment option, but it can be challenging to get started if you're not located in the same area as the property you want to buy. However, long-distance real estate investing is a viable alternative for those who want to invest in rentals without being physically present.
Out-of-state investing can be a great way to get into the property market outside of your hometown or current location. Plus, by outsourcing the management of your property to local professionals, you can minimize the hassle and maximize the return on your investment.
As you learn how to get started in real estate investing, it is important to have a clear understanding of the process and what it takes to make money in this industry. Our Atlanta property managers break down the fundamentals of what real estate investing success looks like and how it can be achieved.
The Advantages of Long-Distance Investing
One of the best benefits of investing in different markets is the opportunity to diversify your portfolio, which can help reduce your risks. Additionally, because real estate prices vary widely from city to city, investing in long-distance real estate can provide you with a broader range of investment opportunities.
By investing outside your comfort zone, property investors may be able to find some of the most lucrative properties available to boost portfolios. A property manager can also tell you that by investing out of state, you can take advantage of potentially lower interest rates and more relaxed lending standards (depending on the market).
What Are The Key Steps to Long-Distance Investing?
Every market is different, so it’s crucial to conduct specific market research when looking for new properties outside of your local market. However, there are some key things that all investors should do when looking into a new market.
Market research includes studying the population, economy, school district, and crime rate of a potential investment market. It’s also important to consider your long-term goals and preferred investing strategies, then find properties that make sense with those goals and strategies. Property owners must carefully consider their objectives and find a market to support them.
Long-distance investors should also understand market trends and how they apply to specific geographic areas. Most importantly, real estate investors should be able to properly analyze market trends and properties to make the most sound decisions.
Remember that long-distance real estate investing involves many of the same steps as finding a new rental property in your hometown, including finding the right property, setting the ideal rental rates, understanding costs, and placing quality tenants.
A property management company in a long-distance market can help you develop a clear understanding of a property’s potential income before purchasing any rental property. There are a number of financial metrics that investors should be aware of. A property manager can help you gather the market research you need and run the numbers.
How To Find and Manage the Right Property (From a Distance)
Finding the right property to invest in long-distance real estate markets can be a daunting task without traveling there to view properties in person. However, with the right insights and a reliable local property manager, you’ll set yourself up for long-distance success!
To add another market to your real estate portfolio:
- Choose a market that has affordable housing prices, good job growth, low crime rates, and a high demand for rental homes
- Crunch the numbers with a property manager in the area
- Make sure you have accurate estimates for ongoing costs, including property taxes, insurance, and maintenance
- Set a rental rate that delivers the cash flow you need for long-term profit
Investing long-distance no longer requires property owners to visit their investments throughout the year! When looking into the Atlanta market, choose a property manager that can operate your rentals while giving you peace of mind (from a distance).
Partner With the Best Property Management Company Atlanta Offers!
When you're looking to invest in real estate from afar, it's important to do your homework. Not only do you need to crunch the numbers and identify monthly expenses, average rental rates in the area, and more—but you also need to partner with the best local experts.
If you are considering investing in Atlanta from out of state, it is important to remember that the best property management company Atlanta offers can help you manage properties while you live in a different market.
Compass Property Management offers a wide range of services to owners of residential properties. We specialize in working with international investors. Whether you're down the road or across the oceans, we are here to take care of your investments. Our services include maintaining and managing properties, helping with financial transactions, improving the property, and finding renters. We handle every aspect of the property from beginning to end—no matter where you live! Contact us today to learn more about how we can help you invest in Atlanta from out of state.
Get our expert insights about real estate investing in our free resource, the “How to Invest In Real Estate Guide!”