The nice part about real estate, however, is that since a property's tax value is depreciated over the course of 27.5 years (39 for commercial) that depreciation is considered a "loss" and counts against any positive cash flow you had.

When I look at the comparables over the last 3 months the average sale price is about $235 per square foot, which would put me only at a resale value of $495,000 ...not worth it.However, there are comps from January of 2022 through July of 2022 that strongly support $300 per square foot putting the resale price of the house at $630,000... totally worth it.My real estate agent, that I've  worked closely with for the last 4 years and have probably done about 15 deals with, ensures me she will definitely get $595,000 minimum for this property, and if I knew that for sure I would do the deal.

Hi Jessenia,The risk of investing out of state is real especially if you are investing far away.

That's real estate 101. 

A quality local RE Broker/Agent in tandem with a reliable contractors should be able to help you with full analysis of post rehab value.

If yes, what are alternative methods to tap into its real estate equity after signing a multi-year lease with an operator? 

There are going to be things that come up along the way while owning real estate that sometimes you don't predict.

I'm Brigitte from Los Angeles, passionate about real estate investing for my future.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

In my case, I have residential rentals in one LLC, commercial properties in another, self storage in a third, and my real estate company operates in a fourth.