May
26
Is it crazy to purchase a house as a rental property in another state?
By
Basically, I live in NY and have been considering purchasing a two-family house to rent out in another state such as PA or CT where prices are much cheaper for a home and so are taxes. Anyone have any experience with this? Will it be something I may regret? Any advice?
I would like to read about people who actually have experience from doing this and not just an opinion from someone who doesn’t even own real estate. Thank you.
Related posts:
- my brother owns the two family house we live in,we dont pay rent,however the? upstairs tenants do,my brother is allowing them to do as they please ,and use all our facilities,washer,dryer,as well as the use of the fusebox,they make noise at all hours...
- Should we stay at an all-inclusive or rent a house? We are going to Mexico for a family reunion. There are 5 families going (about 20 people). Ages from 3-51. Should we stay at an all-inclusive or rent a...
- Should I rent house back to the couple from whom it was repossessed? i bought a repossessed house to rent it out. The couple wsho lost the house have contacted through our estate agent to rent the house with the girl’s father...
- Is HDB has more cheap house to rent for lower income family? my friend ’s income below $1500, support the whole family 4 people (wife ,and 2 kid,6 years, 2 years), they are PR come from maysia.because CPF is very low,...
- How do you get the best mortgage deal? We have been pre-approved by a mortgage company. The mortgage company has recommended a real estate agent. I am a little leary of going with this real estate agent,...
4 Comments
May 27th, 2010 at 6:40 am
I would be verrry careful doing that. You would need a broker that would screen the possible renters very good to keep the damage to a minimal. When the owner isn’t around the renters may lower the value of your property. Some really good friends of mine lost a lot this way.
May 27th, 2010 at 1:07 pm
I have 2 out of state rental properties. I could not and would not do it without 2 things…
1. A corporation, so the properties and their liability aren’t directly mine.
2. An excellent professional property manager who will attend to all the day-to-day responsiblities of managing the property.
If you own the place in your own name, anything could happen and you could be personally liable for it. If you don’t have a great property manager, you will have investments that are totally out of your sight and control and are almost guaranteed disasters at that point.
But if you have cash reserves, are patient, and can find a good manager, you can make a tidy sum without ever really doing anything.
May 28th, 2010 at 6:31 pm
People do it all the time. Just make sure you have a good manager to watch your property.
Good Luck!
June 1st, 2010 at 5:17 am
It’s ALWAYS crazy to buy a rental. :>
That being said, I manage hundreds of properties for out-of-state owners. You will, of course, need a property manager.
They will take maybe 10% of your rent. And they will do absolutely NOTHING.
Or, they will be your best friend and you will wonder how they do all the things they do for a lousy ten percent. Depends on which one you choose. It’s the choosing that is the difficult part.
If I were searching for a PM…
o I would ask for references.
o I would have WRITTEN INTO THE CONTRACT that the property will be inspected and photos emailed to you, say, quarterly.
o Make sure the company is email friendly.
o Get a list of their rentals (or some of them) and drive by and see what they look like.
o Look at their office and see if it’s in disarray or neat and clean. Note how the phone is answered.
o Make sure they guarantee that the rent will be in your bank account by [DATE] assuming rent is paid on time. It helps to have a branch of YOUR bank near them.
Then step back and LET THEM MANAGE. If you can’t find a PM you can trust then don’t be an out-of-state landlord.