How to Find Success With Long-Distance Real Estate Investing

Updated July 9, 2022.

One of the biggest advantages of long-distance real estate investing is the ability to diversify your portfolio. When you're not limited to investment properties in your immediate area, you can choose investments that will give you the best return on your investment, no matter where they are located.

Of course, with any type of investing, there is always some risk involved. However, if you do your homework, follow the advice of Virginia Beach property management experts, and choose wisely, long-distance real estate investing can be a great way to make money and build your wealth. Here are a few tips to help you get started!

1. Research and Choose a Market (or Two)

When looking for the best place to invest in real estate, it's important to do your homework. Just like you research your home market, it's critical to research new markets thoroughly before buying a rental property.

Look for growing markets with a strong demand for rentals, good school districts, low crime rates, and plenty of amenities. Apply the same approach you use to choose new investment properties in your home market and talk with a local property manager for market insights.

2. Crunch the Numbers

Once you've identified a few potential markets, it's time to get down to the nitty-gritty and crunch some numbers. Identify monthly expenses such as property taxes, insurance, and average rental rates in the area. This will help you determine if an investment property is truly a good deal or not.

Avoid making potential mistakes about a long-distance market by assuming that vacancy rates, competitive monthly rent amounts, or renter "must-haves" are the same as your home market. While many of the essential strategies for managing successful rental properties are the same, it's critical to find local information to inform your numbers and formulas no matter the market.

If you're not sure how to find that information for a specific market, reach out to local property managers for guidance.

3. Partner with Local Experts

One of the best ways to find success with long-distance real estate investing is to partner with local experts. Virginia Beach property management companies have the relationships and experience needed to help you navigate a new market.

They can introduce you to local vendors, provide advice on the best areas to invest in, and give you an insider's look at the Virginia Beach rental market. However, when partnering with a local property management company, interview them thoroughly and ask for references from other long-distance investors. Not every rental manager is the right "expert" for your properties and goals.

4. Have a Long-Term Strategy

Investing in real estate is a long-term commitment, whether you're investing in your home market or somewhere new. Don't expect to make a quick flip or see immediate ROI when investing in rental properties in any market.

The key to success with long-distance real estate investing is to have a long-term strategy in mind. Determine what you hope to achieve with your investments and how you plan to get there. Again, your partnership with a local property manager can help you create realistic goals and a timeline for achieving them.

What Are the Benefits of Localized Property Management?

We've mentioned a few times that partnering with local property managers is the best way to maximize your potential with long-distance investing. Having a local team that knows the market and laws or regulations can be a valuable asset when considering out-of-state property investments.

While many rental property landlord-tenant regulations are consistent between markets, cities and states often require different things for rental property owners to comply with the law. With a local property management team in each market where you invest, you don't have to worry about keeping up with changing laws or applying a best practice that is fine in one market but not another.

In addition, localized property management means you have someone available 24/7 to respond to tenants, take care of a maintenance emergency, and collect the rent on time every month. No matter where you choose to invest, partnering with a nearby property manager is one of the best ways to protect rental properties and optimize returns!

Invest in Virginia Beach from Anywhere With Our Property Management Experts!

When approached with caution, research, and the best strategies, long-distance real estate investing can be a great way for real estate investors to build wealth and secure a financial future. By following the advice of our Virginia Beach property management experts, you'll be on your way to success when choosing our market!

If you're ready to learn more about rental properties in this area, reach out to the Osprey Property Management team. We provide residential property management services that cover every aspect of operating rental properties for investors. Our team can also help you find good properties and analyze the market to ensure you add quality properties to your portfolio while avoiding potential liabilities. Reach out soon to chat with our experts!

We’ve compiled some of our best expert insights into this free guide! Download “How To Invest in Real Estate: A Guide.”