As you look for investment opportunities, there is a chance you already live here in the Orlando area, where excellent real-estate opportunities abound. There is also a possibility that you are looking from the outside in.
Maybe you're considering other markets because your home state doesn't currently have the potential for growth and consistent rental income that Central Florida offers. Investments are often more accessible in areas where you know the market and have a good idea of how to get the best possible deal—but investing is more than possible long-distance. Here are some smart moves to consider when growing a real estate investment portfolio in another state.
Choose a Region Where the Markets are Strong
The biggest thing to do when growing a portfolio in another state is to focus on determining where there might be market potential. You may know that where you are isn't an active growth market, but finding places that are may require tapping your network.
Talk to friends and family living in other states; how fast do homes rent in their area? The quicker the market moves, the more sustainable your rental income can be. While you can consider diversifying your portfolio over multiple markets, this is a double-edged sword.
Diversification does make your portfolio less prone to a significant dip due to a change in the housing demand. However, having to know the housing market well in multiple states and locations can create so much additional work for you that it eats into profits—even when you are doing well otherwise. We recommend finding a location—even if it is far from you—and learning as much as you can about it.
You can also partner with the area of interest's real estate agents and property managers. Expert property managers in Orlando, for example, will know which neighborhoods make for hot investment properties and how to target tenants in that area. A local property manager can make long-distance investing a breeze.
Take Advantage of Online Resources
In the past, it would have been tough to be an active investor in a real estate market far from where you live. It's expensive to travel to see your properties, and understanding the rental market requires consistent attention and research.
However, the advent of the internet makes it more possible than ever before to get involved in a red-hot rental market, make some real estate investments, and see excellent returns using digital tools.
Various real estate and rental sites aggregate data that you can use to evaluate how popular a region is, and local chambers of commerce can talk to you about the overall direction that the zone is going in with regards to industries that are moving into or out of the region.
Visit, Interview, and Inspect
While the internet can help you in many ways, you will want to make plans to visit in person to get insights that are hard to gather online. However, don't use your target destination as a vacation and assume that you will somehow gain an understanding of the market just by being there.
- Make a list of questions that you have as you do your online research.
- Next to each one, write one or two potential contacts who could help you answer the questions.
- Send out requests to consult with people who might be useful to know. Local contractors, real estate agents, and property managers in Orlando are all wise choices. Not everyone will be open to having a meeting with you, but offering to buy a few people lunch can help you zero in on the answers to your questions.
- Try to go to a couple of local events to get a feel for the general demographics of the area. The more you understand the appeal of the city, the more you can target eventual listings and get plenty of applications.
The more you plan your trip ahead of time, the fewer in-person trips are needed for an effective start to your long-distance property investment.
A Property Manager in Orlando Is Your Ticket to Success
While getting started is possible long-distance, once you have your first property, it becomes very cumbersome to be a long-distance landlord. Instead of stressing about how you will find and keep tenants, focus on finding a great property management company in Orlando that knows the local scene well enough to assist you on the ground.
Imagine being able to reap all the benefits of an investment property in a hot real estate market like Florida while simultaneously living wherever you want! This is what you can do with a trustworthy property management team like Verandah Properties.
Don't wait until you've already run in circles looking for tenants and cobbled together maintenance resources for a long-distance investment. Trust us; you don't want to be the long-distance landlord when your new tenants in Orlando call for emergency maintenance! That's what your local property manager is for.
As soon as you have your eye on a property, set up a call with us so that you can have a local, professional team on hand to start the tenant search. A great property manager is the best way to make your long-distance property investment offer excellent ROI. However, you have to find the ideal investment property, first.
How do you know which properties are worth investing in—and which you should give a hard pass? Download our free guide: "Real Estate Investing: Grow Your Portfolio" to find out! It's full of useful information for developing investors who want to build their long-term wealth.