OVERCOMING FEARS TO PURCHASE YOUR FIRST LONG-DISTANCE RENTAL PROPERTY
If you’re like many Real Estate Investors, the prospect of buying a long-distance rental property can be overwhelming, if not downright intimidating. After all, how can you be sure that the investment is sound without seeing it firsthand? And what if something goes wrong – how will you get a handle on the issue, buy materials and hire a handyman or contractor if you can’t be there in person to address it? The good news is, you don’t have to let your fears hold you back from making a great investment. With the right research and planning, buying a remote investment property can be an incredibly lucrative venture.
At MY SMART COUSIN, we understand the challenges of finding a house for you and your family, or purchasing a long distance rental property. As a Real Estate Investment coach we can help make that process less stressful and more efficient. We specialize in helping new and aspiring real estate investors, with a particular focus on on Black and Brown folks and women, buy and manage their first property, and buy a house for the price of a car.
In this blog post, we’ll discuss some of the things you can do to reduce your risk and make long-distance rentals a profitable investment strategy. So if you’re ready to take the plunge, keep reading!
WHAT FEARS DO PEOPLE HAVE WHEN IT COMES TO PURCHASING LONG-DISTANCE RENTAL PROPERTIES AND WHY ARE THEY UNFOUNDED?
Many people have reservations about purchasing long-distance rental properties, but these fears are often unfounded.
· The most common concern is that it will be difficult to manage the property from a distance. However, this can be easily overcome by hiring a reliable property management company.
· Another worry is that it will be challenging to find tenants. However, there are numerous websites and services that can help with this task.
· Additionally, many people are concerned about the cost of travel. While this can be a consideration, travel will take place only at the outset when looking at potential properties. Once you’ve purchased a property and hired a contractor and property manager, there will be little, if any, need to travel to see the property.
Ultimately, the decision to purchase a long-distance rental property should be based on individual circumstances and preferences. With a little bit of research, it is typically possible to find a property that meets one’s needs and budget.
THE BENEFITS OF OWNING LONG-DISTANCE RENTAL PROPERTIES
There are many benefits to owning long-distance rental properties.
· For starters, you can earn a great return on your investment. The primary reason for co side ring a long-distance property is because it’s cheaper than the properties in your area and/or the rents are higher than those in your area. The combination of these two factors means that monthly profits are sure to be higher than buying a rental property locally.
· Additionally, you’ll have the opportunity to build equity in your property. As your tenants make monthly payments, you’ll be able to pay down your mortgage and build up equity in your home.
· Finally, owning rental properties can provide you with a steady stream of income that can help you reach your financial goals.
Whether you’re looking to retire early or simply want to save for a rainy day, rental properties can give you the financial security you need to reach your goals.
HOW TO OVERCOME THE FEAR OF NOT BEING ABLE TO MANAGE A PROPERTY FROM AFAR?
It’s not uncommon to feel a bit anxious about the idea of owning property from afar. After all, there’s a lot that goes into keeping a property in good condition – from regular maintenance to ensuring that your customers are happy with their home. If you’re finding the prospect of being a long-distance landlord a bit daunting, here are a few tips to help you overcome your fears:
· First, make sure you have a clear understanding of your rights and responsibilities as a landlord. Once you know what’s expected of you, it will be easier to take the necessary steps to protect your investment.
· Second, put together a solid team of professionals who can help you manage your property from afar. This might include everything from hiring a property manager to working with a remote contractor for repairs and maintenance.
· Third, stay organized and keep detailed records of everything related to your property. This will help you keep track of expenses and stay on top of any issues that may arise.
By following these tips, you can rest assured that you can successfully manage your property from afar – even if it feels like a daunting task at first.
TIPS FOR RESEARCHING AND VETTING LONG-DISTANCE RENTAL PROPERTIES
If you’re considering renting a property to live in that’s located far from where you live, there are a few extra steps you’ll need to take to ensure that the rental is legitimate and that you’ll be happy with it. Here are a few tips for researching and vetting long-distance rental properties:
· Start by doing a search on neighborhoods that are a good match for you. Take into account your must-haves such as school options if you have children, and nice-to-haves such as a particular coffee shop or grocery store chain.
· Once you’ve found areas that are a good fit, search for rental properties that have the amenities you’re looking for and fit your budget. Take a virtual tour of the building, if possible, and search for comments or complaints regarding potential buildings.
· Next, contact the property owner or manager and ask any questions you have about the rental. Be sure to get detailed information about the rental agreement, including any fees or deposits that may be required as well as whether there will be any significant changes to the building such as construction or renovations.
