“Buy land, they’re not making it anymore.” We’re sure you’ve read Mark Twain’s famous investment advice before, but it always bears keeping in mind. That’s because there are many unique advantages to putting your money into real estate.
● You can generate cash flow right away, and look forward to an even greater ROI once you have paid off your mortgage.
● You can deduct the reasonable costs of owning, managing and operating your property.
● You can passively increase your net worth through the magic of appreciation.
● You can diversify your portfolio with an asset that increases in value faster than the rate of inflation.
● You can take satisfaction from actually being able to see your investment – a source of pride securities cannot offer.
Should You Invest in Out-of-State Real Estate?
If you live in an area where real estate prices are preposterously high, such as New York City or Los Angeles, then you probably won’t be able to invest in nearby properties unless you’re the kind of person who regularly goes golfing with Warren Buffett.
But if you can avoid investing in out-of-state real estate, you’re probably best off doing so. Even during this era when everyone is perpetually connected via internet, it is difficult to manage a team of real estate agents, property managers and contractors when you don’t occupy the same time zone as them. It’s not advisable to own out-of-state property unless you can regularly travel to visit it, just to ensure everything your remote team reports is lining up with reality. Owning cash-flow properties in several states also greatly complicates taxes.
None of these hurdles are insurmountable so long as you have the time and other resources you would need in order to properly surmount them. But for our money, nothing beats investing close to home – especially if you’re blessed to live in the beautiful Detroit Lakes, MN area.
Why Should You Invest in Detroit Lakes Real Estate?
Maybe you’ve already feathered a comfortable little nest for yourself here in Detroit Lakes (a lakefront home, if you’re truly fortunate). Your hometown pride compels you to look at real estate investing opportunities in the same community you call your own. But that’s not the only reason why our local market holds so much promise to investors!
- Strong housing demand. Our beautiful scenery, excellent schools and low cost of living have quite rightly created a strong demand for housing here in Detroit Lakes. If you’d like to leverage that demand by becoming a landlord, then you’ll find plenty of reasonably priced inventory right in your backyard.
- Accessible entry points. Would you prefer to invest in commercial property over residential? Then Detroit Lakes still offers plenty of opportunities, which just so happen to be priced significantly lower than comparable properties in Fargo and the Twin Cities. That’s excellent news if you’re trying to minimize your debt-to-income ratio!
- Strong infrastructure. Thanks to legislation such as the Bipartisan Infrastructure Deal, a lot of funding is going straight toward improving rural American infrastructure. Becker County is directly benefiting from that spending in the form of much-needed road repair, broadband internet installation, wastewater treatment plant upgrades and more.
- Strong local economy. Becker County is home to many reputable manufacturers: DigiKey, Arctic Cat and SJE Rhombus, to name just a few. These major employers will continue to make the greater Detroit Lakes area a great place to earn a living and raise a family – something property investors will always profit from.
- Diverse opportunities. Becker County isn’t just a manufacturing powerhouse. It has always been a popular tourist destination, which makes vacation rentals a major part of its local economy. It is home to nearly 1,000 farms, over 150 of which do more than $100,000 in sales each year. And because our area has always been popular among outdoorsmen, hunting land in Becker County also represents a sound investment. In other words, you’re not remotely limited to commercial property when you invest in Detroit Lakes!
Are you looking for great investment real estate? Whether you know exactly what you’re looking for or are approaching your next investment with an open mind, we welcome you to contact Action Realty of Detroit Lakes today. Our clients enjoy free access to all the residential, commercial and agricultural land the greater Detroit Lakes area has to offer!