HOUSING NEWS REPORT
BY ATTOM DATA SOLUTIONS AT OM DATA
dissimilar to the prospect of managing property in their own hometown. The freedom of long-distance investing opens up significant opportunities for insti- tutional investors and everyday landlords alike; chiefly, the ability to take advantage of markets that are better than what’s available in their own local vicinity. Taking advantage of the wealth of diversity in various markets across the states allows an investor to hand- pick investments with the greatest potential; allowing them to grow their portfolio far more quickly than they’d be able to if they were limited to the pool of properties in their own hometown. At Renters Warehouse, we’re proud to support investors who are looking to invest in out-of-town properties. Our team provides on-the-ground local sup- port; making it far easier for investors to outsource the nitty-gritty daily activ- ities of property management; freeing them up to instead focus on growing their portfolios.
incentive for investing across state lines. Out-of-state properties often offer a better ROI than anything that’s available in an investor’s hometown. “People who live in depressed areas but don’t want to move for work or per- sonal reasons may be better off renting in their hometown and investing in real estate where the economy is stronger,” writes Amy Fontinelle, financial journal- ist and personal finance expert, high- lighting the value of long-distance SFR investing. “For example, if you lived in Las Vegas, the city with the highest fore- closure rate during the 2008 subprime meltdown, you might have wanted to buy property in a market where median sales prices remained relatively stable, like Charlotte, North Carolina.” But in addition to the chance to earn a higher ROI, long-distance invest- ing also gives investors the option to diversify. Investing in properties located across state lines can serve as a safety net; allowing investors to pad out their portfolio with a range of assets that add a measure of protection from local and isolated market fluctuations. At the end of the day, diversifying is a safer strategy — and something that investing in multiple markets allows
investors to benefit from.
OUTSOURCING PROPERTY MANAGEMENT Getting started with long-distance SFR has never been easier. Having a team on-call and able to respond to any issues that arise at the rental at a mo- ment’s notice is ideal — and something that investors can assemble themselves by seeking to form connections with local tradesmen and real estate agents. However, the easiest option by far is enlisting the services of one profes- sional to oversee all aspects of property management. Having a dedicated and on-call professional property manager to be your eyes and ears on the ground can prove to be invaluable and is some- thing that many investors are making a central part of their investment strategy. For what’s generally a flat monthly fee, investors can offload a time-consuming task and gain peace of mind knowing that their property manager will be tak- ing on all of the chores that would oth- erwise require the full-time presence of a landlord — including filling vacancies, collecting rent, arranging for repairs, and handling emergencies. A dedicated professional can take most of the work out of SFR rental management. Zillow and Trulia to gather insight into how different markets are performing, it’s always worth connecting with a local real estate agent; someone who’s familiar with the market and able to provide firsthand in- formation on the current rental climate. An investor-friendly Realtor will also be able to set an investor up with an MLS listings search; notifying them as soon as a property that meets their criteria hits the market. According to OwnAmerica, 2019 and 2020 will present new opportunities for SFR investors in markets that were not HOT MARKETS FOR SFR While investors can browse websites like
BENEFITS OF LONG-DISTANCE SFR
The ability to invest in up-and-coming markets that may be better than what’s available in one’s own backyard is one
"MY TAKE" ARTICLE FROM HOUSING NEWS REPORT BY ATTOM DATA SOLUTIONS. Blurred State Lines Benefit SFR Investors
SINGLE FAMILY RENTAL RETURNS BY COUNTY: 2018
2.3%
28.6%
by Kevin Ortner, CEO, Renters Warehouse
T
considerable risk is fast becoming com- monplace. Reaching outside of their own local marketplace is becoming the preferred course of action for many investors and landlords; and in most cases, isn’t that
he lines are becoming increasingly blurred when it comes to local ver-
and easily assess — the performance of out-of-town rental properties, as well as the range of management options that landlords and investors have at their disposal, what was once an arduous task that represented
sus out-of-state real estate investing. Thanks in large part to advances in technology that allow investors to find —
60 | think realty magazine :: december 2018
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