Should You Consider Out-of-State Real Estate Investing?

Investing in real estate is a tried and tested method of building wealth and securing financial stability.

Traditionally, investors tend to focus on properties in their local area due to convenience and familiarity. However, with the advent of technology and increased accessibility, out-of-state real estate investing has become a viable option for many savvy investors.

Is it something you should consider to build a portfolio? Today, we will explore the benefits and considerations of investing in real estate outside your home state, with a focus on Norfolk, Virginia. Additionally, we talk about the best ways to find success with long-distance investing!

You Don't Have to Live Near Your Real Estate Investments

One of the most significant advantages of investing in residential rental properties is that you are not limited by geographic proximity. Thanks to technological advancements, it is now easier than ever to research, acquire, and manage properties from a distance.

Property owners can leverage online platforms, virtual tours, and local professional property management services to overcome the challenges associated with not being physically present near your investment property.

Many Investors Build Portfolios In Multiple States

Contrary to popular belief, many successful investors have diversified portfolios that span multiple states.

By diversifying your real estate holdings across different regions, you can mitigate the risks associated with local market fluctuations. In addition, this strategy allows you to tap into various markets, each with its unique potential for growth and profitability.

Long-distance real estate investing provides you with the opportunity to capitalize on emerging markets and maximize your returns.

Tax Benefits Multiply

Another compelling reason to consider investing in real estate out of state is the potential for different (and better) tax benefits than where you live.

Different states have varying tax laws and incentives that may not be available in your local area. By investing in a state with advantageous tax regulations, you can optimize your investment returns and potentially reduce your overall tax liability.

However, before choosing properties in distant locations, it is essential to consult with a tax professional and local property manager to fully understand the specific tax advantages of investing in a particular state.

Virginia Is an Ideal Location for Residential Rental Property

When considering out-of-state real estate investments, Virginia is an attractive option due to its diverse and robust economy.

The state of Virginia has a thriving job market with a strong presence in industries such as technology, government, defense, and healthcare. This economic diversity provides stability and growth potential, making it an appealing destination for investors. Norfolk, in particular, boasts a vibrant economy driven by the military, shipbuilding, and the port industry.

Benefit from Landlord-Friendly Laws in Virginia

Investing in real estate long-distance requires a thorough understanding of local laws and regulations. Fortunately, Virginia has landlord-friendly laws that make it easier for investors to manage their properties and protect their investments.

For instance, Virginia does not have rent control laws, allowing landlords to set rental rates based on market demand. Additionally, landlords in Virginia have the right to evict tenants for non-payment of rent, providing an added layer of security for investors.

Partner With Local Property Management Experts When Investing Out of State

When considering investing in Norfolk-area real estate, it is crucial to have a reliable local resource to assist you in managing your properties. Having a team "on the ground" means you have local experts to identify excellent investment opportunities, then manage those properties to boost your portfolio. 

Osprey Property Management is a trusted Norfolk property management company specializing in residential real estate investments. With our extensive knowledge of the local market, we can help you identify the best properties and maximize your returns. 

Build Your Portfolio Through Out-of-State Real Estate Investing in Virginia

You don't have to live near your rental properties to add them to your portfolio! Out-of-state real estate investing is an attractive option for investors looking to diversify their portfolios and take advantage of unique opportunities in different markets. With advancements in technology and professional property management services, the challenges associated with investing in properties outside your home state can be overcome. 

Virginia, specifically Norfolk, offers a favorable investment environment for real estate investors with a diverse economy and landlord-friendly laws. To navigate the Norfolk real estate market effectively, consider partnering with our experts here at Osprey Property Management. We have the expertise and local knowledge to ensure your real estate investments in Norfolk are successful and profitable. 

Reach out to our team to learn how we can help you build a better portfolio! Or, get more insights into generating wealth through a successful real estate portfolio by downloading "Real Estate Investing: How to Grow Your Portfolio." It's free!