Remote real estate has been on the rise for the last five years. With housing costs at an all time high, investors have sought out neighborhoods with zip codes increasingly farther from their own, even across state lines. This is made possible with the availability of turnkey providers and property management teams that are local to each specific investment market. With rent control laws and higher property taxes in certain areas, it is often more profitable to search for investment property in other areas of the country. Technological advances, like online listing platforms that allow for virtual tours and aerial photos of properties, have allowed for remote real estate investing to take off.
However, as with any investment there are benefits and drawbacks to consider. One of the benefits include not having to worry about geographic restrictions. Investors are now open to markets that have more affordable prices and higher yields. The areas that are appealing to investors often have lower barriers to entry (e.g. the price of the property) that make it easier to scale your investments. The hands-off nature of remote real estate investing also allows investors to focus on other aspects of their portfolio. This also means that no emotional connections are made to the properties so there will not be any distractions in that regard.
The drawbacks, which may not apply to every investor, are important points to consider before committing to an investment. As with any investment, a considerable amount of time and effort needs to be spent researching areas and properties to invest in. Also, depending on the investor’s experience level, there may be learning curves when entering a new market. After finding a property and capable property management team, some investors may find the hands-off nature to be stressful and prefer a more hands-on approach to their investments.
Some of the drawbacks mentioned above can be mitigated with a true turnkey investment firm. An experienced team will be able to do the research in the area, identify properties, and manage all of the upkeep on behalf of the investor. Investors do not have to worry about overlooking a repair since the property management team already has good relationships with local contractors.
Taking the time to get to know your property management company and making sure that they are a good match will help an investor reach their financial goals and grow their passive income. A local property management team may help lessen the burden as a remote investor, but a true turnkey experience can change the game for remote real estate investors. As the only true turnkey provider in the Kansas City area, Turnkey Property Group manages the process from researching the neighborhoods, selecting and updating the property, to maintaining the property and filling it with tenants, all in house. This takes the guesswork out of investing in a new area and creates truly passive income for the investor.
Schneider, Tom. “The Rise of Remote Real Estate Investing (and How to Get in on the Action)” BiggerPockets. 1 Jan. 2021. https://www.biggerpockets.com/blog/remote-real-estate-investing
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