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Real estate out of state

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Brownsfan2k5
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Real estate out of state  Reply with quote  

I currently own multiple rental properties in a small home town but have been considering buying out of state for bigger returns and more cash flow. Can anyone help me with the pros and cons of doing this?
Post Tue Mar 19, 2013 11:57 pm
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Dodger52
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Re: Real estate out of state  Reply with quote  

quote:
Originally posted by Brownsfan2k5
I currently own multiple rental properties in a small home town but have been considering buying out of state for bigger returns and more cash flow. Can anyone help me with the pros and cons of doing this?


It will cost you more to maintain those out of state rentals. If you can't run over and check on the building or do the simple repairs your stuck paying top dollar to get these things done. That said if the return is great enough it still might be worth doing. My farthest rental was 900 miles away, the cash flow was incredible, but having to pay to do something I would have just run over and taken care of killed me. The final straw was an eviction, if the house was down the street I would have spent a couple hundred bucks and some time. As it turned out it cost me almost three months rent to get the tenant out, I dumped the place as soon as I paid someone to go in and clean it out.
Post Wed Mar 20, 2013 6:17 am
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Brownsfan2k5
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I am currently located in Germany with the military but I was looking at buying homes in Columbus, Ohio because that is where I eventually want to retire
Post Thu Mar 21, 2013 2:46 am
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Dodger52
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quote:
Originally posted by Brownsfan2k5
I am currently located in Germany with the military but I was looking at buying homes in Columbus, Ohio because that is where I eventually want to retire


So currently even your properties are all "out of state". In that case you are already familiar with the added expense, and I would say go for it.
Post Thu Mar 21, 2013 6:09 am
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margaretplevin
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You must invest in Florida real estate. It is a very lucrative housing market and by investing in this market, you can easily increase your cash flow.

Regards,
Post Thu Mar 21, 2013 11:21 am
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Brownsfan2k5
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my father curently watches over all my rentals. As we are 50/50 invested in them. If look at Columbus, he does not want to be apart of that (he fears investing outside of 30 mintues from his location).
Post Thu Mar 21, 2013 1:26 pm
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Publius
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I have an out of state rental property and I have had a couple of property managers. The right property manager makes all the difference. It is an expense, but I am convinced after trying it on my own for a time that it is well worth it. The tenants that we have in there now haven't even ever met me. They deal only with the property manager and I get a statement monthly on any repairs etc. Be sure to set a limit on authorized repairs without contacting you. I decided that I don't want them calling me to let me know that a plumber had to unclog a toilet, but if there is a 1,000 hole in the roof that need to be fixed, I want a call first.
Post Thu Mar 21, 2013 1:54 pm
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Dodger52
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quote:
Originally posted by Brownsfan2k5
my father curently watches over all my rentals. As we are 50/50 invested in them. If look at Columbus, he does not want to be apart of that (he fears investing outside of 30 mintues from his location).


Well then you will spend a little more on a rental, like others have said you will want a good property manager. One thing to consider... If you are eventually going to move there, and you buy a rental that you would be comfortable living in, the benefit of locking in today's low mortgage rates will probably cover the extra expenses that you incur.

Even if you don't move into the property(s) , the money you save on property managers when you move to the area adds to your retirement income. When you run your numbers just add in the extra maintenance costs and management fees, if the property still cash-flows then it will only be better when you get there.
Post Thu Mar 21, 2013 10:53 pm
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keganjosh
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Call real estate agents from the preferred area until you find one who meets your expectations. Arrange to visit the area to preview the properties, and determine how the property will be managed if it is not your primary residence.
Post Tue Apr 09, 2013 8:23 am
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littleroc02us
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I once asked a tenant what she would prefer of her landlord and she said "To be around and present". I think it shows that you care about the quality of the place, the tenants and you have can see if someone is destroying your property. It's hard to do those things when your so far away. I have two homes that I work on that I don't own, because the owners are to far away.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Apr 29, 2013 3:56 pm
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