Out of state investing

[Andres Pepping]

Hi everyone, 

I am looking for out-of-state rental investment opportunities (prop. tax to high in Chicago). Does anyone have any insight as to the best way to go about out-of-state investing? Anything to be mindful of? Specifically, we are looking into purchasing Section 8 rental properties. 

Thanks.

[Lindsay Davis]

@Andres Pepping,

Alabama could be a good fit if you’re after low property tax rates—the statewide average rate as a percentage of home value is about 0.4%. (By contrast, it’s 2.0%+ in Illinois.)

Plenty of markets also feature affordably-priced properties—the average home price in Birmingham is about $175,000, while in Montgomery it’s roughly $150,000.

As for things to be mindful of, definitely find yourself an excellent set of boots on the ground. If you’re interested in Section 8 rentals, hiring a trustworthy property management company that has experience navigating the voucher program’s bureaucratic approval and compliance to-dos is arguably the single most important thing you can do once you get a deal under contract.