What makes a state a good place for real estate investors?
There is actually a very big difference in how investor friendly different states operate—especially for landlords. Make sure you know the differences, as well as the advantages and disadvantages, of these markets. These can dramatically impact your annual returns, level of risk, and overall profits.
Here are some of the factors to consider when investing.
I love Indiana because it takes a little over 30 days from initially filing an eviction to get non-performing tenants out of the property. When you show up to court, the judge generally asks one question to the tenant: “Did you pay the rent?” If not, then the tenant has less than seven days to vacate. Sob stories do not go very far in court. In contrast, I’ve heard that in Chicago it can take up to six months (and oftentimes longer) to evict a tenant depending on how savvy the tenant is with leveraging the system.
States that may be considered better for landlords from this perspective may include Kentucky, Indiana, and Ohio.
Friendliness to Businesses
If you are in real estate, you are in business. Some places, such as California, have proven to be very unfriendly to businesses and landlords—and have frequently unleashed rent control along with other limitations on investors.
Related: 4 Ways Systems Make Landlording Easier, Simpler & More Profitable
Another factor to consider is the cost of doing business in a market. For example, to file and maintain an LLC is very affordable in most…