Buying investment property - In Town or Cheap out of town?

Buying investment property - In Town or Cheap out of town?

When you are thinking of buying your first investment property, a couple of questions may come in your mind and one of them is.... Do I buy this expensive property locally or in a small town, out of town where the properties are very cheap?

Welcome to Wealthy Wednesday.

So, this is a very obvious question because sometimes you get a property in a small town. out of town, especially if you're living in South Florida. The prices are high. And then if you buy something in Mid-Florida or North Florida, some of the cities, the prices are very cheap. The question is do you pay high here or do you buy the one and the cheaper properties? A couple of things to consider.

Number one thing, when you buy something out of town, you lose a lot of control. Means, when there's a repair, probably it will be hard to find a handyman because you have more resources locally. Number two, in a market when you get a price lower, probably the growth rate on the price on that market is lower too. So down the road, when you're going to sell that property, you may not get a very good price.

Sometimes some bad tenants, when they know that their landlord is not local, they can create trouble too because they know that you are not just going to come on the door or knock on the door or collect the rent. So that's another struggle you may have to buy a property out of town.

So especially when you're buying your first property or second property at the beginning. My suggestion will be buy something local. Now when you become expert or you put a team together, that means you have a handyman ready, you know a great lender for the investment property. Or if you have a family member who you trust with real estate investment means they're committed and they give a commitment to maintain your property. Then it's fine to buy a property out of town because you do have resources. So make sure that you have enough resources before you buy a property out of town. And also make sure you are not losing control because at the end of the day this is an investment. You have to put down your down payment or if you buy for cash and you have to maintain those properties. Knowing the rules and regulations for that particular city, whichever city you're buying the property, those are very important.

So my suggestion again is to buy something local, start local and then think on those. Hopefully this information is going to help you to buy your 1st, 2nd or third investment property. Let's talk if you have any questions. Shawn Bhakta from Remax Presidential. Talk to you soon.