Investing in rental properties out of state requires hiring local professionals to manage your rental interests. If you live in a state where buying investment property is almost unattainable due to the high price tag, then out of state real estate investing may be for you. Here are some tips on how to investing rental properties out of state.
Contact a local Realtor or real estate agent to ensure that you are paying a competitive market price on the property. A good Realtor will have some connections with local professionals to do any work needed on the property before a tenant occupies the home. After the property is purchased, a Realtor can collect rents and manage the property for you. Back ground checks, criminal checks, and local references can be completed by your real estate agent. This prevents working with prospective tenants that may not be fully qualified to rent your home, or have outstanding evictions or felony criminal charges. A real estate agent will be familiar with local area rents. Pricing the rent too high, will result in a longer vacancy rate. Price the property according to the rate the real estate agent suggests. Ask for print outs that detail similar homes or condos for rent in the area.
Buying properties long distance requires a thorough inspection before the property is acquired. Making offers that require the offer to pass inspection is important. Buying a home with a cracked foundation, or electrical problems can easily be avoided by paying a reputable professional inspector to check the home out thoroughly.
The real estate agent managing the property may know some general contractors that can add fresh paint, update tile, install carpet or hardwood floors, counter tops, and any other cosmetic treatment the property needs to land a quality tenant. Landscaping may boost curb appeal, and help to sell your home above similar houses in the area. A well maintained front and back yard will rent faster than a home with large dirt patches and long forgotten shrubs or overgrown plants.
A local attorney familiar with state laws can handle all of your property contracts. Most attorneys are knowledgeable about tax issues that can occur with one or numerous rental homes. In the event there is an eviction or sale of a home the attorney can process the paperwork for you and even appear in court on your behalf.
Buying real estate without touching it is entirely possible by working with a team of professionals. Real estate professionals can be your eyes, ears, and voice during this process. Use these tips to help invest successfully out of state.