Charleston Property Management Blog

3 Benefits of Out-of-State Real Estate Investment Purchasing

Written by Charleston Property Company | Jun 11, 2021 1:00:00 PM

Suppose you don’t live in Charleston but there is an excellent property that you want to invest in, what should you do? Well, considering how easy property management companies in Charleston can make managing your rental, you should take the risk.

Out-of-state real estate investments may seem riskier, but they are worth considering. The benefits of opening up your mind to such possibilities are significant. Below we'll cover some of them.

You Don’t Have To Live In a Property to Invest In It

By the end of 2020, the rate of homeownership in the U.S. stood at 65.8%. But that leaves at least 34% of households without a home, which means that they have to rent.

You may not want to rent a space in your primary home for privacy reasons. And that’s okay.

But if you have a second home, you should let it pay for itself by finding a good renter. This may be scary for you if you want to take care of your property. But don't worry too much.

If you hired one of the best property management companies in Charleston, there is no need to micromanage things. Your property could be in Charleston while you live in Alaska—or even outside of the country. You could even be traveling around the world throughout the year. Your distance from your investment does not matter.

Your real estate investment will still be standing when you find the time to visit and take a look at it. Professional property managers will take care of it. They will ensure it’s well maintained and occupied consistently. And you will still get your monthly rental income.

It’s safe to say that out-of-state real estate investment purchasing is possible. All you need to do is to be willing to take risks.

It Allows You to Have Portfolios in Several States

Different states across the U.S. have unique attractions. And these contribute to their economy. 

Based on the median household income, the District of Columbia is the richest state. It’s the political seat of the country. And it tends to attract many people who want to pursue a political career. You also have states like Colorado and Texas, which are considered some of the best places to live. The former is a haven for lovers of all things marijuana, which is a huge attraction in the state.

As a real estate investor, you need to spread your risk even within the same industry. You can do that by having several real estate investments spread across multiple states. Then you can take advantage of the economic strengths and incentives available in each state.

Of course, Charleston is also a great place to own a rental property. It's unique in that it draws a healthy tourist population looking for short-term rentals, but also has a thriving economy and plenty of industry to draw long-term renters as well. A strong economy and great features, like walkable neighborhoods and plenty of nightlife, make it a great addition to any portfolio.

Out Of State Real Estate Investments May Be More Affordable

Some states in the U.S. are more expensive than others. For example, Hawaii, New York, and Massachusetts are currently some of the most expensive states to live in. But many times, these high-cost-of-living areas also offer high-paying jobs. So, they are great places to work in, but may not be the best places to retire to.

If you want to build wealth through real estate, the high cost of living in expensive states can be challenging. You could afford a decent home but may not have enough money for an investment property. And that is where out-of-state real estate investment purchasing comes in.

The money you earn in one of the more expensive states can go a long way in a cheaper state. You could get a six-figure income in California and then invest it in a Charleston property.

The typical value of a home in California is about $635,000 but one in Charleston is about $366,400.  So, you could get nearly two real estate investment properties in Charleston compared to what you could get anywhere in California.

Opening up your mind to real estate deals across the country is the best way to go about getting more property for your money.

Investing Out-of-State with the Help of Charleston Property Management

Out-of-state real estate investment purchasing is one of the best ways to build wealth. You do not have to live in each property that you own. You can spread the risks within the industry across multiple states. And you can still get your money’s worth by buying cheaper properties in low-cost-of-living areas.

When you partner with the best property management companies in Charleston, you get peace of mind that your property is in good hands, no matter where you are located. We perform the daily management tasks for all your Charleston properties.