Have you ever planned to buy land in Arizona? Maybe you live in an expensive city where home prices are too high, or you’ve heard about a hot real estate market somewhere else and want in on the action. Investing in out-of-state real estate can be a great way to build wealth, but it also comes with challenges. Don’t worry—I’ve got you covered! In this article, we’ll break down everything you need to know about buying and managing real estate when you don’t live nearby. We’ll keep things simple, so whether you’re brand new to investing or just looking for tips, you’ll walk away feeling confident about taking the next step when you buy land in Arizona.
1. Research the Local Market
When investing in real estate in a place that is out of state, it is important to do your due diligence and research the local market thoroughly. This includes understanding the current trends, demand, and supply of properties in the area. You may want to consider hiring a local real estate agent or consultant who has experience in the market and can provide valuable insights into the local conditions. Additionally, it is important to familiarize yourself with the local laws and regulations regarding real estate ownership and investment, as they can vary from state to state. By doing your homework and gathering as much information as possible, you can make informed decisions and maximize your chances of success in your out-of-state real estate investment.
2. Choose the Right Location
When planning to buy land in Arizona, it’s even more important to choose the right location. Before making any decisions, do some research on the area to get a sense of its economic stability, job market, and population growth. You’ll also want to consider any local laws or regulations that may impact your investment. In addition to accessibility, safety, and proximity to amenities, you should also think about the potential for appreciation in the future. Look for areas that are up-and-coming or undergoing revitalization, as these could be smart investment opportunities. Ultimately, choosing the right location can make all the difference in the success of your real estate investment.
3. Use Technology to Your Advantage
Living far away doesn’t mean you can’t stay involved with your property. Thanks to technology, you can manage almost everything remotely.
🔹 Virtual Tours & Online Listings – Websites like Zillow, Redfin, and Realtor.com let you view homes from anywhere.
🔹 Property Management Software – Platforms like Buildium or AppFolio help you track rent, maintenance, and expenses.
🔹 Video Calls & Drones – Use FaceTime, Zoom, or drone footage to check on your property without visiting.
🔹 Smart Home Tech – Smart locks, security cameras, and remote thermostats help you monitor your property.
The more you use technology, the smoother your long-distance investing will be!
4. Understand the Local Laws and Regulations
Each state has its own set of laws and regulations regarding real estate investments. It is essential to understand them to avoid any legal issues when you buy land in Arizona.
5. Understand the Numbers
Investing in real estate isn’t just about buying a house—you need to make sure the numbers work. Here are the key things to calculate:
💰 Purchase Price – How much does the property cost?
📈 Rental Income – How much rent can you charge?
🏡 Expenses – Property taxes, insurance, repairs, and management fees.
📊 Cash Flow – Rental income minus expenses (you want this to be positive!).
📉 Cap Rate & ROI – These numbers tell you if the property is a good investment.
A simple rule to follow is the 1% rule—the monthly rent should be at least 1% of the purchase price. For example, if a house costs $200,000, it should rent for at least $2,000 per month.
6. Check the Property’s Condition
Before purchasing a property, you should get it inspected by a professional to identify any potential issues or repairs that may be necessary. This rule applies when you also buy land in Arizona. You have to check the access of the land, if there are any existing amenities, or structures.
7. Consider Property Management Services
Managing a property from out of state can be challenging. You should consider hiring a property management company to handle the day-to-day operations of the property.
8. Expect the Unexpected
Real estate investing is exciting, but it’s not always smooth sailing. When you live far away, surprises can pop up. Here’s how to prepare:
🚨 Emergency Fund – Keep extra cash set aside for unexpected expenses. When you buy land in Arizona through us, we lay every thing for you so as to prevent surprises. However, it does not hurt to always prepare an emergency fund.
🔍 Regular Inspections – Have your property manager check on the home.
📜 Good Lease Agreements – Protect yourself with a strong rental contract.
🔑 Tenant Screening – A bad tenant can cause big problems, so choose carefully.
Planning ahead helps prevent headaches later on!
9. Get Your Financing in Order
Unless you’re paying cash, you’ll need to figure out how to finance your out-of-state investment. Here are some common options:
🏦 Conventional Loan – A regular mortgage from a bank.
💼 Investment Property Loan – Designed specifically for rental properties.
🏠 HELOC (Home Equity Line of Credit) – Use equity from your current home.
🤝 Private Lenders – Borrow money from investors instead of banks.
Keep in mind that lenders may require a bigger down payment (usually 20-25%) for investment properties, so be prepared for that extra cost.
Investing in real estate when you live out of state can be challenging. However, with the right information and assistance, it can be a smart decision to build long-term wealth and generate passive income. By following the ten things buyers should look for and working with a professional real estate buyer at Lands For You, you can make informed decisions and achieve your investment goals. Contact us today to learn more about how we can assist you in your investment journey when you buy land in Arizona. 602-806-7899