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Does it matter if you leave near or far away from your investment properties?
By Tom | April 9, 2008
Slick asked:
I live in northern NJ and am looking to buy properties around the country. If I hire a property manager to take care of the problems, does it matter where the properties are in relation to where I am? I keep hearing people say “you should live near your investment”. Why would it matter if I am hiring a property manager?
Wesley
Topics: investment properties | 6 Comments »
April 11th, 2008 at 3:31 am
If you have a property manager, you should be in good shape.
Personally, I would still visit the property in person before buying it.
April 12th, 2008 at 11:27 am
I don’t think it is a problem if you have a good property manager. Buy real estate in different parts of the country is the best way to diversify this type of investment since you are not dependent on any one real estate market performing.
Besides you can write off the travel if the main reason for traveling is to check up on your properties.
April 15th, 2008 at 11:06 pm
It doesn’t. I have a doctor friend of mine who has houses in New Jersey, New York, Texas and two here in California. He lives primarily in one of the houses here in California and rarely goes back east to upkeep the others.
April 19th, 2008 at 2:49 am
You don’t need to live near your investment properties if you hire people you can trust to manage them for you. The trick is carefully screening the management companies you will be working with and making sure to outline in detail (in the contracts) all the procedures that are important to you: ie contacting you for repairs above a certain amount, criteria used for screening tenants,….
Good luck and good profit.
April 21st, 2008 at 8:58 am
If you’re not in the local area, a property manager is the only way to go. A few states essentially require this in that they require the landlord to have a local representative.
To be honest, even when I was in the local area, I left it up to the property manager to deal with the hassles!
April 23rd, 2008 at 11:44 pm
I own a rental unit in another city and it has had its trouble. It should be Ok with a property manager. Just research the company thoroughly and make sure they are trust worthy. Establish a relationship. Keep in mind they don’t have vested interest in the property like you do. Also, expect unforeseeable problems… bottom line is go in knowing that it won’t be easy… yet, it won’t be easy even if the property is next door.