Many real estate investors wonder if it’s worth the hassle of investing in property outside of the state that they reside. The short answer is yes… but you need to be aware of the different regulations other states may have for purchasing investment property.
For instance, loan limits can vary by area. One example is that Oregon’s conforming loan limit is about $484,350, while some areas of California are as high as $726,525. Additionally, the lender and real estate agent you plan on using will both need to be licensed in the state where you’re purchasing property (not where your home base is). Being able to find professionals you trust is of key importance, since you will primarily be dealing with them remotely. If you need recommendations for out-of-state resources, we can help!
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It’s also a good idea to buy property in an area that you’re familiar with so you know what different neighborhoods are like, and can narrow down exactly where you’d like to purchase your investment property.
Another thing to consider when buying investment property in another state is how easily you can travel there. The upside of traveling for your out-of-state investment property is that it can be tax-deductible. Keeping this in mind may encourage you to purchase an investment property somewhere you actually enjoy visiting!
Have more questions, or want a referral to a professional in another state? Contact us, and we’ll be happy to help you!