Real Estate Investing Tips for Out-Of-State Investors

Housing prices are on the rise, and they don’t seem to be slowing down in high-dollar real estate locations such as New York and California.

Per the California Association of Realtors, in October 2021, the median cost to purchase a single-family home in the state of California was $798,440.00, which was up 12.3% from the year before. In November 2021, the National Association of Realtors reported a median sales price in the U.S. of $362,600.00. As you can see, the median cost to purchase a single-family home in California is over double the median sales price in the U.S. Not only are these outrageous prices in the State of California out of reach for many home buyers and investors, but they may not be very profitable for those wanting a long-term investment.

For this reason, and also because of Florida’s world class beaches, Florida real estate investment has become a very appealing and lucrative financial investment for those looking to invest in real estate. Below are several tips from real estate attorneys in central Florida to keep in mind if you are interested in investing in Florida real estate.

Before reading these tips, when investing in real estate, you should always consider contacting your central Florida real estate attorneys. Nishad Khan P.L. has been serving real estate investors in Florida for over 15 years and has the skill and the requisite knowledge that is needed to assist you in finding the perfect investment real estate property in Florida.

1. Search for single-family rentals 

Compared to condominiums and cooperatives, single-family homes tend to appreciate at higher values. They’re also easier to sell when the time comes to sell the property.

2. Work with local central Florida real estate attorneys 

Real estate attorneys in central Florida, such as Nishad Khan P.L., know what they’re doing. They can advise you in various areas of law such as:

• Questions you may have concerning various real estate laws and how they would apply to your transaction.
• Questions you may have concerning the status of the marketability of title and how to address any title issues that may arise during your examination of the title to the property.
• Questions concerning the types of due diligence that should be conducted during the inspections period.
• Any other questions you may have about investing in Florida real estate.

You definitely don’t want to get into real estate investments without having a general understanding of how real property laws work in Florida, as you could end up with major problems in the long run.

3. Keep your portfolio diverse 

Any good investor knows not to keep all of their eggs in one basket, and real estate is no different.

Make sure you have a well-balanced portfolio of properties (cooperatives, single-family homes, condominiums, etc.).

4. Talk to real estate professionals who know the location 

A real estate professional, such as a real estate agent, who knows the neighborhoods surrounding the property that you are considering purchasing is critical to making a sound investment. They can help you avoid bad areas, or areas that are not believed to appraise well in the long term.

Real estate agents in Florida have been seeing lucrative deals for out-of-state buyers and can help to advise you on the locations and the properties to jump on (or to avoid).

5. Have a solid investment strategy 

When it comes to central Florida real estate investors, the ones who do well have a very solid investment strategy in place. Before making any purchases, you want to decide what you are going to do with your properties. Three strategies that Florida real estate investors have been known to use are:

• Buy and Hold the investment property: This is for a buyer who is intending to purchase the property then to hold on to the property for a longer period of time. In this circumstance, the buyer will either: (1) live on the property permanently; or (2) hold off and wait to sell the property until the house has increased in value.
• Flip and Sell the investment property: This is for a buyer who wants to purchase the property then immediately re-list it for sale at a higher price. If you decide to go this route it may make sense to talk to central Florida real estate attorneys about the best way to go about this strategy.
• Renovate and Sell the investment property: This option is good for the buyer who wants to purchase a property requiring renovations, make the required renovations and then wants to turn around and sell it (or hold onto it until it gains more financial value).

Whatever your end goal is, always make sure you consult with a central Florida real estate investors attorney prior to executing your strategy.