We all know that real estate is about location, location, location. But what a lot of investors don’t know is how easy it is to invest in rental property in a different city or state.

Remote real estate investing lets you overcome the limitations of your local marketplace by owning rental property in areas with more opportunities and higher returns. In this article, we’ll explain how remote real estate investing works, why the market is growing, and tips for remote real estate investing success.

What Is Remote Real Estate Investing?

Remote real estate investing is similar to today’s growing work-from-home trend. You no longer have to be in the office to work, so why do you have to buy real estate in the same city that you live in?

Thanks to remote real estate investing, the answer is that you don’t have to. Investing in real estate remotely gives you access to more profitable opportunities across the U.S., in housing markets where economic growth is robust and property prices are still affordable.

Here’s a quick overview of how it works:

Own rental property in another city or state from where you live without geographic limitations.

Hire a local property management team to handle details such as leasing, maintenance, and rent collection.

Monitor your local team and property performance via periodic video conferencing, emails, phone calls, and review of monthly financial statements.

Why Remote Real Estate Investing Is Growing

Over the last five years, the number of out-of-state real estate investors has increased by almost 8%—and for good reason. In many real estate markets today, housing prices are reaching all-time highs, property taxes are on the rise, and anti-landlord legislation like rent control laws has been enacted, all of which are helping to drive the growth of remote real estate investing.

Per data from Roofstock, many of the investors buying property elsewhere live in states like California, Washington, New York, Texas, Florida, and Illinois. And we see these customers buying in states like Missouri, Indiana, Mississippi, Texas, Tennessee, Alabama, and Georgia.

There seem to be several reasons remote investing is on the rise:

Investors can earn higher yields in other markets, especially those living in high-priced markets on the East and West Coasts.

High real estate prices in many local markets make it nearly impossible to begin investing in real estate without a large amount of capital.

Remote real estate investing makes it easy to diversify investment portfolios instead of putting all of your eggs in one basket—the same strategy as a stock portfolio.

You’re also seeing a plethora of tech tools simplifying remote investing:

Online listing platforms designed for the remote real estate investor
Drone photography, 3D pictures, virtual tours, and augmented reality
Digital transaction services to review, sign, and notarize documents online

Remote Real Estate Investing Pros and Cons

Although remote real estate investing is growing, buying rental property out of state isn’t necessarily right for every investor. Here are some of the top pros and cons of remote real estate investing to consider before you invest.

Keep reading the article here:
https://www.biggerpockets.com/blog/remote-real-estate-investing

Subscribe to the BiggerPockets Channel for the best real estate investing education online!

Become a member of the BiggerPockets community of real estate investors – https://www.biggerpockets.com