It’s no surprise that investing is a game best played on your feet, especially when it comes to real estate. Fluctuating markets keep you on your toes, and as interest rates creep back up, now is the time for investors to get creative with their strategy. If you’re looking to diversify your risk, increase your return on investment, and simplify your to-do list, the benefits of investing out-of-state will be extremely attractive.
At Turnkey Properties, we believe in working smarter, not harder. For investors ready to take on the housing market and increase their cash flow, we’re here to help. Keep reading to learn more about how out-of-state real estate investment may be your next move!
Lower Cost Up-Front
Living in an area with a high cost of living and an expensive housing market can make it difficult to break into the real estate investment game. What’s more, is that buying in your own housing market could leave you with higher up-front costs that won’t pay off in the long run.
Investing in out-of-state real estate is usually a win-win-win situation. Here’s what we mean:
Lower Down Payment + Lower Mortgage + Home Value Appreciation =
More Opportunities to Invest for the Same Amount of Money
Lower housing prices in an out-of-state area allow you to get your foot in the door with a lower down payment on the front end. Match this perk with a lower overall mortgage and the higher likelihood of a market upturn and value appreciation, and you’re in the game with less input than if you invested in a home next door.
Higher Returns
Low up-front investments naturally go hand in hand with higher ROIs. That’s because you’re likelier to see a positive cash flow on properties that follow the 1% rule, where you can charge around 1% of the overall cost of the investment in rent per month. Your money will buy you more and offer higher returns in less expensive areas.
It’s also important to consider the fact that housing markets with low and steady housing prices have a higher chance of increasing when the market improves. Undervalued markets are likelier to see an upward trend than markets that have already experienced steady growth in previous years.
Risk Diversification
For investors who already have a firm footing in the real estate investment market, investing out-of-state is a great way to stabilize your risk. As with any investment, keeping a diverse portfolio makes you less likely to take a hit during recessions. During times of change, you’ll be glad you spread your risk more evenly.
To-Do List Simplification
Although it’s a common tactic to buy close to home, babysitting your investments is not necessary when you have a team like Turnkey Properties to do that for you. We’ll help you locate the right home, rehabilitate it, and place reliable tenants. Our property management services include property inspections, routine drive-by checkups of your property, and fully transparent communication. You can rest assured that your investment will be handled by area experts so you can sit back, relax, and enjoy your ROI from anywhere in the country.
Invest the Right Way with Turnkey Properties
Turnkey Properties is your expert investment firm whether you’re investing in or out of state. We’re here to help you find the right property in the right markets with the right property management in Memphis and Little Rock. Contact us today to schedule a consult!