Welcome to another edition of the Coast-to-Coast Real Estate Investor.
Last week I wrapped up the overview of the various states to invest in. If you haven’t read any of those, or heard the Podcast versions yet you can go back and access them. The blog entries are located here in the archives, and the Podcasts can be accessed at:
http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=20058&cmd=tc
Those “where to buy property” episodes will be real useful to you for laying the groundwork on where to invest.
Today, I am covering a basic game plan for buying property out of state. This game plan is structured around long-term holding, but those of you interested in flipping properties can still make use of much of it. Today, I’ll be presenting the overview, and in the following weeks, I’ll be examining each step much more thoroughly.
So, let’s begin!
Step 1. Researching Markets –
Before you ever invest in an area other than your own home market, you need to have a clear idea of where you are going to invest…and why. Your reasoning can be as simple as the desire to buy a vacation home, or as calculated as trying to invest in a highly appreciating market. But, you need to be clear on your goals.
Begin with one market in mind. In the beginning, don’t try to chase all over the country after deals. With an entire country’s worth of real estate out there, you can get stretched way too thin and end up unproductive and totally frustrated. Simply put, you can’t know everything about every community, and there’s a lot of market research you need to undertake before you buy. Thus, you need to focus your attention. Believe me, I know this first-hand. You can easily fall into the trap of spinning your wheels looking at too many places at once and get more wrapped up in looking than buying! Being busy looking at properties will not make you wealthier – only buying them will.
So, where do you go to research markets?
My Podcast & Blog, of course are good places to get market information. As I noted at the beginning, the overviews presented over the last several weeks are good places to begin. And, down the road, I’ll be taking very intense, detailed looks at various areas.
Commercial sources are another great place to do your research. There are great magazines such as Where to Retire and powerful websites such as www.bestplaces.net that can provide all kinds of market information.
Government resources – the U.S. Census is a tremendous resource when it comes to digging up details on job growth, demographics, and housing prices among other things. State economic development offices and boards of realtors can help you get more localized information.
Step 2. - Locating properties
Locating properties is actually one of the easiest parts of the process. However, as I mentioned, it’s also the biggest trap because there is an endless supply of properties across the country; so, I will re-emphasize the importance of focusing your search.
Websites are the natural place to begin searching. One of the things that made out-of-state investing so possible now is the access to property listings on the Internet from sellers and realtors.
Craigslist (www.craigslist.com) is among my preferred places to look. If you haven’t come across Craigslist yet, it’s like the worlds biggest classified advertising site. For Sale By Owner sites, like www.fsbo.com are another place to look. FSBO’s are good because you are dealing with sellers directly and deals aren’t complicated by real estate commissions.
Real estate sites like www.realtor.com, and those available from virtually every real estate office are another logical choice. Realtors, with their access to multiple listing services have access to the main source of property listings, and a good share of brokerages allow the public to access the local multiple listing service (MLS) listings from their websites.
One commonly overlooked source of property leads is other investors. You’ll find investors with properties they are trying to flip, rentals they want to sell, and fixers they are trying to wholesale - so they can be a good source of leads. A side benefit is that they are the most common source of owner financing, so if you don’t want to go the traditional mortgage route, they offer a potential advantage.
Step 3. Buying properties
Keep in mind that whether you are buying a vacation home or trying to flip a property in a hot market, you are an investor. As an investor, the numbers must make sense in any deal. Always keep in mind that you need to buy right. That means getting good prices, good terms, or both. As an investor you can’t afford to buy at retail – or worse, above retail. Speculators do that in hot markets, but that’s more akin to gambling than investing.
Because of the need to get good deals, For Sale By Owners hold particular appeal. As I noted a moment ago, FSBO's are good because you are dealing with sellers directly, and deals aren’t complicated by real estate commissions. As an investor, in general, you will find that working with owners far easier than working through real estate agents.
That’s not to say you shouldn’t work through real estate agents. Realtors are the single largest source of properties for sale, so you can’t overlook working with them.
There is the issue, however, of whether you should work with one realtor exclusively (typically they will be your buyer’s agent) or whether you should talk to all the various listing agents who have the particular houses for sale.
In general, you’ll find it easier to contact the listing agents directly, but that also tends to be the harder route to go in terms of successfully buying something. Working with one specific agent and getting them to send you listings that meet your criteria is much more productive and will serve you better in the long run. On the other hand, it can be difficult to find a good agent. A good agent is worth their weight in gold, and it can take speaking to 20 or 30 agents before you find a good one. Plus as an investor you tend to be on a longer timeline than most agents expect; if you don’t buy, sooner or later they will move on to other clients.
On a completely different issue, buying condos versus single-family homes should be an issue you consider. Personally, I prefer condos in amenitied communities with things like a pool, tennis, etc. Buying a condo means you have to factor in the monthly condo fee, but that fee also takes a lot of maintenance issues off your plate, which is good when you are out of state. Single-family homes are generally the better investment, though. Keep in mind, however, that with a single-family house, sooner or later you’ll have to put on a new roof, take care of the landscaping, perhaps exterminate bugs – those are dealt with for you in a condo or townhouse. Over a long period of time, the cost of repairs versus those condo fees can be equivalent to each other
Step 4. Financing
If you are flush with money, cash flow, and credit, the subject of financing is probably not too much of a concern for you. You’ll be able to go out and get a mortgage of some type, and your main concern is getting the best rate and terms you can find.
If you are a typical buyer, probably with a middle income job, a family, and so forth, you are probably weak in one of those areas, so the subject of financing is probably much more important to you. To emphasize this point, a typical middle income buyer may find it reasonably easy to get a second home loan, but then run into a brick wall buying a third property. So, understanding the subject of finance is vital.
Owner terms – commonly referred to owner financing or creative financing is something every investor should study. Sooner or later you will run into a roadblock trying to qualify for traditional financing. At that point, if you don’t find alternative means to finance properties you’ll be stuck in the water. If an owner will offer owner financing where you make payments to him or her instead of wanting a cash sale, issues of your income, credit, or debt load may be irrelevant. It’s simply you and the seller at that point as opposed to you being scrutinized by a big money bank.
That’s not to say you won’t use traditional financing. There’s a place for that, too.
Mortgage brokers, who independently represent a variety of lenders, are often a best source for traditional financing. Simply put, if the broker can’t get you a loan, they don’t earn their commission, so there’s a good incentive there.
Banks, of course are natural sources. If you utilize a large national bank like Chase or Citicorp check to see if their mortgage department is licensed in the state where you want to buy. This can be more expensive than other routes, but there is a convenience factor because you can work from your local branch.
Local banks – that is, banks in the immediate area where you want to buy can be great places to find loans at good rates. Depending on the particular bank, they are often the most assertive lenders in the area, and often have decent terms and criteria – representing a bargain compared to other sources.
Step 5 – Don’t Forget the Details
Never forget the details you have to take care of when you have an accepted contract – these include surveys, home inspections, pest inspections, and appraisals. I have one important piece of advice - don't go with the affiliated companies of large banking operations. They are simply too expensive compared with independent services in the area. Countrywide, for example, partners with appraisers, title companies, pest inspectors, home inspectors, and so on. The fees for these “convenient” services can easily be double what you’d pay for the same service by selecting your own vendor.
Step 6. Closing -
You’ll need a title company to close. In some states the buyer gets to select the title company, in others it’s the seller’s prerogative If it’s yours, get references, and don't go with one affiliated with large mortgage company….again, too expensive compared to the overall market. That bedfellow arrangement is often nothing more than disguised greed waiting to take your money.
Part of the title company’s work is providing title insurance. Again, don’t go with the affiliates if you are using a large national mortgage company unless you are willing to pay a whole lot extra.
Step 7. Getting tenants
This is among the most important steps in the process. If you don’t get good tenants…and get them quickly, your investment will turn into a monthly money pit.
I do not recommend trying doing it your self. It just doesn’t make sense for you to try to secure and manage a tenant from hundreds of miles away. Some people do it successfully, but I am going to suggest you consider professional help in this arena. I’ve never understood why a landlord (even one with a local property) would try to undertake their own management to save $70 or $80 a month. Think about it -- where else can you get 24x7, legal, advertising, marketing support, etc. for about just a few dollars a month? I have a friend who owns several franchises. He pays his managers in the $30,000 range, and they don’t handle nearly the responsibility my property managers do. In my mind, professional property management is a secret bargain you need to discover.
First be aware that there is a different between tenant placement and property management. Most real estate agents who handle rentals are doing tenant placement. That is, they will find and qualify a tenant for you. For that, they will typically charge you 1 month’s rent. The problem is, you are left to manage the tenant, handle ongoing repairs, collect the rent, deal with potential eviction and a host of other concerns after the tenant is obtained. That’s not what you want.
What you really want is a property manager who not only can secure a tenant, but can handle the property on an ongoing basis. In my opinion you want to get the best property manager you can find because they have the best systems, contacts with reliable tradespeople for repairs, etc. A bad property manager is next to useless and can end up costing you money by being slow to get tenants, and sloppy with handling them, so get the best you can find. A good or bad property manager costs about the same amount, and that’s around 7-10% of rents.
In resort areas you may have the mixed blessing of short-term rentals. That’s a subject a bit too complex to go into in this edition, and I’ll save that for later. What I will note is that short term property management will be much more expensive than I’ve noted, and can run as high as 30% of your rents. It’s just the nature of the beast, and you need to decide whether to rent short-term or not.
A real blessing is when you can find an onsite property manager, or one that’s so closely affiliated with a community, it’s essentially the same thing. They have somewhat of a monopoly on getting tenants for that community, so they are usually the best game in town. It’s a double benefit if they also manage the home owner’s association because they really have their thumb on the full pulse of issues like maintenance.
Step 8. Handling vacancies and negative cash flow
You need to be properly primed to handle an out of state rental. Like any investment, thinking it will be rented 100% of the time is unrealistic. Consequently, you need to be prepared for the inevitable vacancies and likelihood of negative cash flow, unless it’s in more of a working class rental area. If you are prepared for that going in, you’ll do OK. If you don’t allow for that, you’ll get stung.
Keep in mind that the better the property is for appreciation, the worse it tend to be for cash flow. A resort property may not cash-flow at all, but might appreciate 10% per year. A blue-collar rental house may have decent cash flow, but little appreciation potential.
Given a typically priced and financed deal, a simplistic way to think of the financial realities of solid white-collar home is that in year 1 you’ll have a negative cash flow. In year 2 you’ll approach break even. In year 3 you’ll have a slight, but insignificant positive, and from there on you should see a small but increasing positive cash flow. That again is simplistic, but at least sets the stage for appropriate thinking. A little reserve cash will go a long way to your being able to hold on to that property.
So, it’s eight steps. That will give you a sense of what processes it takes to successfully invest out of state. As we go over the next few weeks, I’ll be taking intimate looks at each of those stages, providing much more depth, and supplying lots of resources.
You won’t want to miss a single edition!
Have a great day, and live your real estate dreams!
Friday, June 8, 2007
Friday, June 1, 2007
Where to Invest (Part 5) – The Mid Atlantic and New England
Welcome to another edition of the Coast-to-Coast Real Estate Investor.
Last week we discussed the Midwest, and how although it’s not a raging market, you can make sensible investments there. To make last week’s material short, look at properties in the Midwest as kind of a blue-chip investment that plug along at steady rates and produce solid cash flow.
This week we’re going to look at the Mid-Atlantic and New England areas – another set of regions for which that “blue-chip” nametag could apply.
Make no bones about it – that great megalopolis from Washington, DC and up through most all of New England is pricey. And, much of it – DC, New York, Boston, Hartford, Philadelphia, etc., has suffered the effects of speculative buying, running prices up so high that the markets are priced out of the range of the median buyers in the area. Prices in the big cities are more related to the effects of the greater fool theory, which I’ve talked about in prior episodes, than any real sense of value. What’s more important, is those markets have stalled and in a lot of cases we’re seeing prices decline. In my book, it had to happen.
Despite the Mid-Atlantic region and New England areas being pricey, there are opportunities for investment if you know where to look. Plus, with the sizable populations in the area’s huge cities – who tend to be priced out of the housing market at this point – the natural result is the population moving further out in order to find affordable housing. That means the more reasonably-priced regions outside of the core metro areas are getting increased attention – and that kind of demand pressure will cause those prices to rise.
With that in mind, let’s start in Maryland.
The Eastern Shore of Maryland – which is the area of land east of the Chesapeake Bay, for the longest time was a sleeper. There was just this mental barrier – despite the existence of the Chesapeake Bay Bridge - to crossing the Bay. That ended about 5 years ago, and populations spread to the other side. Some of it is concentrated close to the bridge for commuting to Annapolis, Baltimore, and Washington, DC, but the real prospects stem from the interest by retirees and baby-boomers who are moving to the more rural areas.
It’s a pleasant quality of life on the shore – small towns dot the landscape, and only a couple of small cities exist there, and it’s pretty water-oriented. That kind of bucolic combination makes for a perfect retirement choice. Prices have risen substantially over the last 5 years, but there’s still a lot of reasonably-priced real estate on the shore, and many areas have yet to be discovered. I’ll add in most areas of Delaware – particularly the rural areas into this discussion.
Additionally, I can’t forget discussion of the ocean resorts like Ocean City, MD and Rehobeth, DE. While most of the resort property is sky-high at this point, there are pockets – for example around Ocean City’s bayside (not oceanside) that still offer some value for the typical investor.
On a final Maryland note, certain areas of Western Maryland, particularly Hagerstown are promising because they are commutable to the outer reaches of DC growth, and have much better pricing than the DC suburbs…and the benefit of rural quality of life.
Next is Pennsylvania
In Pennsylvania I will point to the Amish Country in and around Lancaster. People fleeing the congestion of Philadelphia often pick the Amish Country as their favored destination. Make no bones about it – the Lancaster region has grown substantially because of that migration, and prices have moved accordingly. It used to be that one could find houses all day long in the low $100’s; the entry point now is closer to $200,000, but that doesn’t mean you can’t find property well under that. In particular, row houses in Lancaster and many of the other smaller cities and towns can still be had for even under $100,000 and make good rental units. Fixer-upper country property is still available at modest prices as well…and all of it in my book is destined for constant appreciation.
Harrisburg and York, Pennsylvania are two other good choices. York is undervalued by many standards, and is quickly gaining speed as a commuting point for people working in northern Baltimore. It’s the perfect combination – reasonable values and a do-able commute.
I’m also a fan of Harrisburg. It’s the capital city of Pennsylvania, which always bodes well for employment – eventually translating into buyers and renters. Prices are still modest by national standards, and people are quickly choosing Harrisburg as an alternative to living in the congestion of places like Philadelphia. Row houses in rental neighborhoods can run as low as the 30’s (sometimes lower), and singles can be had in solid rental areas right around $70,000.
New England States
I’m going to lump all the New England States – New York, Connecticut, Vermont, New Hampshire, Massachusetts, Rhode Island, and Maine into somewhat the same ballgame. I think the perception is that all of New England is priced beyond reason, and to a certain extent, that is not a bad interpretation.
But, as expensive as New England is, if you dig, you can find nuggets of gold. Principally, you need to look well away from the obvious choices like Boston or Hartford and into the rural areas. There are exceptions to that, but the rural areas and small towns – and in particular inland - away from commuting rage to the big cities are where the prices are within investor criteria. These are areas that will benefit from quick appreciation as populations in those states migrate and retirees look for better quality of life.
In New York, you’ll find scattered nuggets around the Finger Lakes region. Some of the cities along Lake Ontario show promise price-wise. Buffalo comes to mind as having some of the better-priced property in the country…and good rental rates as compared to prices. But, winters there are definitely an issue that must be factored in - and in my book could all but eliminate consideration of locations along Lake Ontario.
Rhode Island is tough if you are price-oriented as I am. The state is simply so small that much of it is commutable to Providence and Boston - and feels the effects. It’s a very popular state as well, with a stretch of coastline, and a favorite of the rich and famous. All of that seems to keep prices quite high.
In Massachusetts, believe it or not, you can still find some gems along the southern coast south of Boston. They’re rare, and of course disappear quickly, but if you value that New England maritime feel, this is one place you can look.
Inland, in smaller cities and towns like Springfield, and even the university city of Amherst (college towns are generally a good option), you’ll find good investment opportunities.
Connecticut has a plethora of small cities from which to choose. Torrington on the west side of the state, Putnam on the East, and even Manchester right outside of Hartford are all examples of reasonably priced Connecticut towns. As with all of New England, the rural areas are getting increased attention as people seek to escape the rat races of the big cities.
Vermont – You’ll need to go pretty rural, but investor-priced properties can be located in certain of the smaller towns and cities. Rutland and Barre are two locations to consider, but for the most part, unless you are willing to take on negative cash flow for a higher priced property, or go deeply rural and wait for appreciation to catch up, VT is rugged, rural, and pricey.
New Hampshire –Laconia, near Lake Winnipesaukee in New Hampshire’s Lakes Region is promising because of its proximity to the water. Beyond that, you have to get pretty far into the country to find modest investments
Maine - Maine is like the other New England states – you’ll find deals in the smaller towns and cities, particularly inland. However, Maine has a couple of exceptions that are noteworthy. Portland, the capital city, which is also waterfront, still has some pickings. Plus, there are quite a number of small towns dotting the coast, where if you look – and especially if you are willing to get into the $200,000 range - you can find a good property. And, there is a smattering of smaller cities and towns located along tributaries and rivers that bring the water-orientation into play. In places like Belfast, Bangor, Bucksport you’ll often find occasional nuggets, although you have to spend time to locate them.
As I wrap up with Maine, I’ll mention a side benefit to buying in the Mid-Atlantic and New England, and that is the availability of historic property, particularly the fixer-uppers that you can often find. Yes, rehabbing a historic property takes its own set of skills and values, but there are distinct advantages to buying historic buildings. Much of this I’m going to save for a later episode, but there are significant tax credits available (credits, not deductions) for owning and rehabbing historic property. Plus, the rarity of a historic property creates an unusual level of desire/demand along with associated pricing.
So, that will give you a sense of what’s available and the kinds of tactics you need for investing in the Mid-Atlantic and North East. There are plenty of unique finds, if you know where and how to look. Plus, the stability and population situation in those areas can make for solid long-term value.
Next week, I’ll be leaving the discussions of locations behind and turn to an overall game-plan of what you need to do to invest out-of-state successfully. It’s the first of the how-to lessons, and one you won’t want to overlook.
Have a great day, and live your real estate dreams!
Last week we discussed the Midwest, and how although it’s not a raging market, you can make sensible investments there. To make last week’s material short, look at properties in the Midwest as kind of a blue-chip investment that plug along at steady rates and produce solid cash flow.
This week we’re going to look at the Mid-Atlantic and New England areas – another set of regions for which that “blue-chip” nametag could apply.
Make no bones about it – that great megalopolis from Washington, DC and up through most all of New England is pricey. And, much of it – DC, New York, Boston, Hartford, Philadelphia, etc., has suffered the effects of speculative buying, running prices up so high that the markets are priced out of the range of the median buyers in the area. Prices in the big cities are more related to the effects of the greater fool theory, which I’ve talked about in prior episodes, than any real sense of value. What’s more important, is those markets have stalled and in a lot of cases we’re seeing prices decline. In my book, it had to happen.
Despite the Mid-Atlantic region and New England areas being pricey, there are opportunities for investment if you know where to look. Plus, with the sizable populations in the area’s huge cities – who tend to be priced out of the housing market at this point – the natural result is the population moving further out in order to find affordable housing. That means the more reasonably-priced regions outside of the core metro areas are getting increased attention – and that kind of demand pressure will cause those prices to rise.
With that in mind, let’s start in Maryland.
The Eastern Shore of Maryland – which is the area of land east of the Chesapeake Bay, for the longest time was a sleeper. There was just this mental barrier – despite the existence of the Chesapeake Bay Bridge - to crossing the Bay. That ended about 5 years ago, and populations spread to the other side. Some of it is concentrated close to the bridge for commuting to Annapolis, Baltimore, and Washington, DC, but the real prospects stem from the interest by retirees and baby-boomers who are moving to the more rural areas.
It’s a pleasant quality of life on the shore – small towns dot the landscape, and only a couple of small cities exist there, and it’s pretty water-oriented. That kind of bucolic combination makes for a perfect retirement choice. Prices have risen substantially over the last 5 years, but there’s still a lot of reasonably-priced real estate on the shore, and many areas have yet to be discovered. I’ll add in most areas of Delaware – particularly the rural areas into this discussion.
Additionally, I can’t forget discussion of the ocean resorts like Ocean City, MD and Rehobeth, DE. While most of the resort property is sky-high at this point, there are pockets – for example around Ocean City’s bayside (not oceanside) that still offer some value for the typical investor.
On a final Maryland note, certain areas of Western Maryland, particularly Hagerstown are promising because they are commutable to the outer reaches of DC growth, and have much better pricing than the DC suburbs…and the benefit of rural quality of life.
Next is Pennsylvania
In Pennsylvania I will point to the Amish Country in and around Lancaster. People fleeing the congestion of Philadelphia often pick the Amish Country as their favored destination. Make no bones about it – the Lancaster region has grown substantially because of that migration, and prices have moved accordingly. It used to be that one could find houses all day long in the low $100’s; the entry point now is closer to $200,000, but that doesn’t mean you can’t find property well under that. In particular, row houses in Lancaster and many of the other smaller cities and towns can still be had for even under $100,000 and make good rental units. Fixer-upper country property is still available at modest prices as well…and all of it in my book is destined for constant appreciation.
Harrisburg and York, Pennsylvania are two other good choices. York is undervalued by many standards, and is quickly gaining speed as a commuting point for people working in northern Baltimore. It’s the perfect combination – reasonable values and a do-able commute.
I’m also a fan of Harrisburg. It’s the capital city of Pennsylvania, which always bodes well for employment – eventually translating into buyers and renters. Prices are still modest by national standards, and people are quickly choosing Harrisburg as an alternative to living in the congestion of places like Philadelphia. Row houses in rental neighborhoods can run as low as the 30’s (sometimes lower), and singles can be had in solid rental areas right around $70,000.
New England States
I’m going to lump all the New England States – New York, Connecticut, Vermont, New Hampshire, Massachusetts, Rhode Island, and Maine into somewhat the same ballgame. I think the perception is that all of New England is priced beyond reason, and to a certain extent, that is not a bad interpretation.
But, as expensive as New England is, if you dig, you can find nuggets of gold. Principally, you need to look well away from the obvious choices like Boston or Hartford and into the rural areas. There are exceptions to that, but the rural areas and small towns – and in particular inland - away from commuting rage to the big cities are where the prices are within investor criteria. These are areas that will benefit from quick appreciation as populations in those states migrate and retirees look for better quality of life.
In New York, you’ll find scattered nuggets around the Finger Lakes region. Some of the cities along Lake Ontario show promise price-wise. Buffalo comes to mind as having some of the better-priced property in the country…and good rental rates as compared to prices. But, winters there are definitely an issue that must be factored in - and in my book could all but eliminate consideration of locations along Lake Ontario.
Rhode Island is tough if you are price-oriented as I am. The state is simply so small that much of it is commutable to Providence and Boston - and feels the effects. It’s a very popular state as well, with a stretch of coastline, and a favorite of the rich and famous. All of that seems to keep prices quite high.
In Massachusetts, believe it or not, you can still find some gems along the southern coast south of Boston. They’re rare, and of course disappear quickly, but if you value that New England maritime feel, this is one place you can look.
Inland, in smaller cities and towns like Springfield, and even the university city of Amherst (college towns are generally a good option), you’ll find good investment opportunities.
Connecticut has a plethora of small cities from which to choose. Torrington on the west side of the state, Putnam on the East, and even Manchester right outside of Hartford are all examples of reasonably priced Connecticut towns. As with all of New England, the rural areas are getting increased attention as people seek to escape the rat races of the big cities.
Vermont – You’ll need to go pretty rural, but investor-priced properties can be located in certain of the smaller towns and cities. Rutland and Barre are two locations to consider, but for the most part, unless you are willing to take on negative cash flow for a higher priced property, or go deeply rural and wait for appreciation to catch up, VT is rugged, rural, and pricey.
New Hampshire –Laconia, near Lake Winnipesaukee in New Hampshire’s Lakes Region is promising because of its proximity to the water. Beyond that, you have to get pretty far into the country to find modest investments
Maine - Maine is like the other New England states – you’ll find deals in the smaller towns and cities, particularly inland. However, Maine has a couple of exceptions that are noteworthy. Portland, the capital city, which is also waterfront, still has some pickings. Plus, there are quite a number of small towns dotting the coast, where if you look – and especially if you are willing to get into the $200,000 range - you can find a good property. And, there is a smattering of smaller cities and towns located along tributaries and rivers that bring the water-orientation into play. In places like Belfast, Bangor, Bucksport you’ll often find occasional nuggets, although you have to spend time to locate them.
As I wrap up with Maine, I’ll mention a side benefit to buying in the Mid-Atlantic and New England, and that is the availability of historic property, particularly the fixer-uppers that you can often find. Yes, rehabbing a historic property takes its own set of skills and values, but there are distinct advantages to buying historic buildings. Much of this I’m going to save for a later episode, but there are significant tax credits available (credits, not deductions) for owning and rehabbing historic property. Plus, the rarity of a historic property creates an unusual level of desire/demand along with associated pricing.
So, that will give you a sense of what’s available and the kinds of tactics you need for investing in the Mid-Atlantic and North East. There are plenty of unique finds, if you know where and how to look. Plus, the stability and population situation in those areas can make for solid long-term value.
Next week, I’ll be leaving the discussions of locations behind and turn to an overall game-plan of what you need to do to invest out-of-state successfully. It’s the first of the how-to lessons, and one you won’t want to overlook.
Have a great day, and live your real estate dreams!
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