For investors in large coastal cities like New York, Los Angeles, San Francisco and more, investing in property in their home city is out of the question. Prices are extremely high, even in the furthest suburbs and resident turnover tends to be large as well. However, a surprising solution has allowed many of these investors to make a profit from rental homes. The catch? They’re located thousands of miles away from where they live.
Investing in residential properties in smaller and on -the-rebound cities is a very smart choice. Rents tend to be quite high compared the actual purchase value of the home, which means that investors can make a solid passive income each month while building their portfolio. However, it is quite difficult for investors to actually find these properties without help from an investment professional that knows the area. Over the past few years, services have begun to pop up that do exactly that.
USA Portfolio Real Estate, for example, is a company based in Michigan that helps real estate investors from around the world find great properties that are within their budget. They help them through the process and then they act as the landlord for the home as well, managing tenants, collecting rent and taking care of maintenance issues. Since this takes much of the stress out of being a landlord, investors can focus on getting a great property and spending their money wisely, without worrying about managing the rental home on a day-to-day basis.
Many investors have found that working with a company like this helps make the housing market seem much more accessible than it would have if they were investing on their own. After the housing market crash in 2009, it makes sense that people would feel wary about spending their hard-earned money on a rental property, but since companies like USA Portfolio are run by expert investors, the stress level is much lower.
Although this process makes investing in rental properties much easier, investors still need to do their homework when it comes to making purchases. Factors like property taxes, vacancy rates and more can vary widely by location, so it is important to do your research and make sure you are comfortable with these factors. Luckily, it’s not difficult to find great properties that check all of your boxes in a smaller city. Because there is far less competition for investment, it’s easy to snatch up a great purchase when you find one.