Investing Outside Your Local Area
By Kimberly Hoffman
There are do’s and don’ts with any particular method of investing. The only thing that matters when concluding what method of investing to choose is your comfort level. No method of real estate investing is worth you losing sleep at night regardless of how profitable it may be.
However, if you feel secure in your chosen method and the REI process is enjoyable than I would not lose any sleep of your decision. Mistakes will be made and lessons will be learned along the way but enjoying what you do makes all the difference in the world.
Here are some investing considerations
- Purchase Price. You first need to determine if you have enough capital to purchase in the prospective market. Some areas are higher than others and will require more capital.
- What will your profitability be? Profits are money coming in after all expenses are paid each month and appreciation.
- Most homes will increase in value. This appreciation is known as equity.
There are many ways of profiting from rental properties. Typically when searching for a rental property, your goal is either monthly cash flow or appreciation. An example; Midwestern markets are known to produce monthly cash flow but be slim on appreciation. However, San Francisco and Los Angeles are low on monthly profitability but high on appreciation. So, depending on what you are after in terms of cashing-in, you may want to look outside your local market for investing opportunities.
To find out more about investment opportunities click here.