Where Should I Buy My Rental Property?
This is a VERY GOOD QUESTION. My answer is always close to where you are. Why would you want to buy it close to you?
Few good points:
- You know your area the best. You know what is going on in your city, hopefully. You know what job opportunities are there, how the city is growing…etc. In other words, don’t buy in an area you are not familiar with. It doesn’t matter how cheap someone tells you.
- Buying rental close to you helps you to keep an eye on it. Do a drive by to check on the house occasionally. If your rental is 100 miles away, you will tend to not want to go as often as you should. You tenant might have picked up and left and you won’t even know it.
- If there is an emergency, you can rush over yourself. You don’t need to count on someone to go check it out for you.
Don’t be a long distance Landlord. Many folks may be a long distance landlord by default. What does that mean? It means that they were moving to another city or state because of job relocation and they could not sell their home due to the value and what they owe. This is being a landlord by default. If you find yourself in this situation, pay a property management company to take care of it even if it cost you. Believe me, it is better in the long run.