3 Reasons Beginners Don’t Invest Out-of-State (& How to Overcome Them!)

Buying out-of-state property or property in a different country can be very rewarding. Due to the fact that you’re not bound by your current location’s limitations, you have access to property in prime locations elsewhere. Prices could be in your favor, rental demand could be through the roof, or maybe you’re simply able to diversify your portfolio. In some cases, it can be as simple as owning a vacation home you can rent out to people when you’re not there.

Oftentimes, investors are motivated to buy out-of-state property simply because it’s more affordable. Perhaps you live in an area like New York City, Sydney or even London, where real estate prices are phenomenally high. In these areas, it’s hard enough to afford one property for most people, let alone two.

If you just can’t afford to buy something over there, it really makes sense to look at other locations. Here, property costs could be significantly lower. Initial cost might not be your main concern, though. In that case, investing in property out-of-state can give you a great boost in terms of ROI when you decide to rent the place out. I believe that I have already stressed enough in my previous blogs and posts on BiggerPockets that you should invest based on cash flow and not speculate on capital appreciation.

As lucrative as these investment opportunities are, people still hesitate to take the next step. And there’s a reason for that. Actually, there are a couple. If you are new to the field and you want to invest in out of state property or even property in a different country, you are likely to face a few challenges.

Read more from Engelo the Real Estate Dingo at BiggerPockets.

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