Advantages of Investing Where You Reside

As real estate investors, you have the option to invest in properties around the world. After trial and error, you may have learned what type of properties produce the best ROI. Over the years of funding real estate investments, we have learned that some of the most successful real estate investment properties are located near the investor.

Real estate markets can be very different in as little as 10 miles depending on the MSA. Understanding the market in which you invest is important as to create realistic expectations and have an understanding of the potential ROI.

There are many advantages to investing where you reside, including being able to manage the property and the rehab. If you live near the property, you may not need to hire a property management group, which usually costs investors 15% of the property’s monthly rent. Living near the investment property gives you the ability to check in on contractors, track the project, sort out any issues and fix certain things around the investment property including lawn maintenance. Seeing the project and not relying on the contracts word of mouth, creates a better investment and a higher success rate. The contractors have no obligation to the lenders, the borrower does.

Another great advantage of investing near where you reside includes the ability to get involved with various groups in the area, including real estate groups, to network, find resources, and build a professional team.

At ReCasa Financial Group, we require the investor to reside within 60 miles of their investment property. This helps the investor financially as they are able to make sure rehab is on schedule and they will not go over the loan term.

What advantages can you add for living near your investment property?