Why Invest in Out-of-State Houses? The 4 Reasons to Expand

Where you choose to live and where you choose to invest do not always have to be in the same place. In fact, for many investors, they are not. You likely don’t choose to buy a stock because the businesses are close to home. Why limit your real estate investments? With the right property selection and management team, you can achieve the greatest benefits from choosing out-of-state real estate investments.

As an experienced property management network, we are the best equipped to spotlight the four key benefits of out-of-state real estate investing enjoyed by hundreds of savvy rental and vacation rental homeowners across the country – no matter where your personal home may be located.

1) Targeting States With Lower Real Estate Costs

First, the state you live in, for whatever reason, should not limit your investment opportunities. If your current home is located in a region with higher property taxes, insurance requirements, or strict rental regulations, it may not be the best place to start (or grow) your real estate portfolio.

Investing out-of-state allows you to target states that have lower associated costs. These include lower property taxes and more flexible options when deciding how to ROI your investment properties.

2) Access to the Best Regional Markets for Investment

Second, an out-of-state investment strategy allows you to target the most profitable regions for rental and vacation rental homes. Depressed housing markets with more affordable properties or booming job markets with high rental demand (better yet, regions with both) are your best ROI opportunities when it comes to real estate investment.

These regions exist all over the country and in many states. You can take advantage of the best opportunities by building an out-of-state investment team. They will help you assess and manage the most profitable rental homes you can find.

3) Diversifying Your Portfolio

Third, it is always smart to build a diverse portfolio. Why put all your eggs in one regional basket? If you focus too much on one area, one major storm could have you worried about a half-dozen roof repairs all at once. When you invest in a broader network of out-of-state properties, each one contributes to the stability of your portfolio and allows you to take care of the others.

Local economic upturns and downturns will also benefit you with a diverse portfolio. You will have access to many strong markets while minimizing the effect that a weak market might bring. Any regional problem will only affect a small number of your investment properties. It will keep your income steady and your operational revenue available to maintain each property in turn.

4) Creating Reasons to Travel for Business and Pleasure

The fourth and final reason to invest in out-of-state properties is to create an excuse for travel. Making the occasional visit to your rental properties qualifies as a business trip. It will also give you a reason to explore many different cities and landscapes across the country. Investing in multi-state real estate is an adventure in and of itself. While you can and should rely on a talented local property management team, your occasional visits to each property can also be an inspiring getaway from the sights and sounds of your home region and an opportunity to explore.

Start Investing Everywhere With Atlantic Home Mortgage

Atlantic Home Mortgage can help you qualify for investment-ready properties and cultivate opportunities in the best rental regions in the country. If you are ready to diversify your portfolio with out-of-state real estate investments, we’re ready to make the process both easy and enjoyable. Contact us today to explore your financial options to secure beautiful investment homes in any investment area of interest.