Investing in In-State vs. Out-of-State Properties: Both Have Their Benefits
Posted: October 1st, 2020
No matter what sparked your interest in property investment, everyone’s reason for entering the investment market is fairly simple: to earn passive income and build a diversified portfolio. With that in mind, your core goal upon entering the investment market is to find a property (or properties) that will help you receive the greatest return. But how do you know whether to stay close to home or to branch out to other states?
According to the Brevard County investment specialists at Ellingson Properties, the answer isn’t a black-and-white one. The choice of investing in properties in-state or out-of-state depends largely on the current market conditions and your comfort level with your property management team. Both in-state and out-of-state investments have their benefits and their setbacks, so it’s up to you to determine the best market for your search--with the help of your real estate consultant.
Investing In-State
Brevard County’s rental market is an active one, with many contractors arriving at the Space Coast for jobs in tech, aerospace, and defense. The impressive continued growth of major corporations like L3Harris make in-state property investments, particularly around Brevard, attractive prospects.
Benefits of Investing In-State
When you search for a rental or buy-and-hold property in your own state, you’re already familiar with local rules and regulations. As a current Florida homeowner, in this instance, you probably already have at least one relationship with a realtor or a real estate expert who can help you navigate the ins and outs of investment properties. Consider this the “home-field advantage.”
As a local, you also have knowledge of the best contractors and repair specialists in your area so that you can respond immediately to any tenant issues, should you choose to manage your property yourself. If you should partner with a local property management company like Ellingson Properties, you can still speak with your property manager to recommend your favorite vendors, should you have them.
If you’re curious about investing in nearby properties, get started by talking to a real estate professional to hear their recommendations and learn about their available options.
Investing Out-of-State
According to Roofstock, Austin, TX; Raleigh/Durham, NC; and Nashville, TN are among the best cities to find property investments in 2020. To determine this list, Roofstock took into account several factors, including high levels of job creation, expected population growth, high levels of construction activity, housing affordability, and more.
Benefits of Investing Out-of-State
Investing in out-of-state properties is more accessible than ever before, thanks greatly in part to updates in technology. It’s fairly easy to find a real estate professional in an interesting market who can guide you through the process and take you on walkthroughs of the properties you want to see--even entirely virtually.
Investing out-of-state means that you may be able to find more affordable homes for sale. You also have the potential to earn a higher return on your investment when you find a market with high job and population growth rates. You may also be able to find a property that suits your investment style. Altogether, investing in out-of-state properties gives you a more customizable experience overall.
If you do decide to invest in property outside of Florida, it’s a necessity for you to find a trustworthy property investment company to manage your home. Trying to handle maintenance and repair requests and tenant needs is a difficult task when you’re thousands of miles away--especially if you’re in a different time zone.
The Bottom Line
When you’re seeking investment properties, whether it’s your first time entering the market or you have a few properties in your portfolio, seek the advice of a trustworthy real estate advisor to help guide your journey. A good realtor is one who is intimately familiar with their local area and can give you insider information about desirable locations and opportunities. To learn more about investing in Brevard County real estate, call Ellingson Properties at 321-750-7050 to learn more.