Many people are looking to invest in income producing properties . With that in mind ,investors need to ask themselves some questions like locations- local or long distance , property types, investment size, management style and more . Here we will look at some advantages of investing locally and long distance .
By investing Investing local, the investor/landlord gains some advantages
*Easy Access- any time you can have short drive and easy access to check on your property.
*Demographics-you know it all about the current renters and the new renters that are coming to your area. You know the culture of the area .
*Landlord and Tenants Laws-You know the ins & outs of the laws and regulations. You might have already personnel connections with such staff attorneys , title companies,etc.
*Market Knowledge-You know the recreations and other services that the area provides to its community. It makes you feel more comfortable . You know rental market rates. You know what's available & what becomes available on the market,simply you know your completion.
To sum up , you may find investing local is less risky , more convenient while dealing in a market that you are naturally familiar with and enjoy easy access on a regular basis just because you live there or nearby.
Long Distance Investing required from the investor/landlord to consider
*Larger cash flow/higher ROI-to make sure there is enough income to pay for management , marketing and other expenses.
*Property Size- If you are comfortable in investing in the suburb , for the same initial investment size, you can buy a larger property.
*Property Type- you can choose to create a portfolio of properties that are not necessary available in your local town.
Although, the risks of long distance investments such as not knowing the area , not having easy access to your investments , dealing with managers and contractors from afar seem obvious , it still could be profitable investments if and when it's being done the right way.
AS you can see , both investments local and long distance have the upsides and the more challenging aspects of investing and owning real estate. These advantages to be deeply rethink and analyzed when investing local or long distance is an option.