Benefits of Long Distance Real Estate Investing (While Living in High Cost Cities)

[Hayley Beckman]

Long distance real estate investing opens up a world of possibilities by allowing investors to tap into markets far beyond their local reach. While living in high cost cities has its own advantages, one of the disadvantages is the high investment cost it takes to enter into real estate investing. With advancements in technology and communication, managing properties remotely has never been easier! Investors can now leverage online platforms for property tours, market analysis, and property management, enabling them to overcome geographical barriers and diversify their portfolios.

One of the key benefits of long distance investing is the ability to access markets with higher potential returns (particularly in the Midwest). Typically speaking, individuals living on either the West Coast or East Coast experience significantly higher home values which makes investing in rental real estate properties more difficult. The cost to value and cash on cash (COC) returns can often be 200-300% higher in the Midwest when compared to your local real estate markets. Investors can strategically target these areas to secure properties at lower prices, benefiting from economic growth and development trends.

Living in a very expensive real estate market (like my Seattle area), long distance real estate investing provides a dynamic path for building a robust and diversified portfolio that I didn’t think was available. The digital age has allowed me to explore new markets, manage properties from afar, and capitalize on undervalued opportunities in the Midwest that might have otherwise been overlooked. For those willing to embrace a broader horizon, long distance investing not only enhances potential returns but also builds a resilient investment strategy with significantly lower cost to entry for real estate investing.

I’d love to hear your thoughts: would you consider long distance real estate investing to seek out greater rates of return and a lower investment cost?