Adam Adler is the owner and founder of a company called The Adler Fund. The Adler Fund invests in a wide array of different things, including start-ups and real estate. At this time, The Adler Fund has over 1000 different rental properties throughout the United States. If you are looking to invest in rentals, you may be wondering what the benefits are to investing in different properties in different states, rather than keeping all of your investments in one area or state. Read on and let Mr. Adler explain some of those benefits to you.
Adam Adler says that one of the reasons why owning investment properties in different states is beneficial is because you can better stabilize your income. If you rent places in one particular area, you can be hit hard if the rental market shifts downward. If a large employer moves out of the area or a military base closes in the area, people may move out of the area and that can shift the rental market downward. When you have homes in different parts of the country, some rental markets may shift upward and some may shift downward, creating a balance and stabilizing your rental income.
Adam Adler explains that having all of your rental properties in one area can be extremely detrimental if a state of emergency happens. If most or all of your rental properties are in one area, you may find yourself having to repair multiple homes and go without rental income if a flood, fire, earthquake, hurricane or other event happens. Owning property in different parts of the country will not prevent natural disasters and states of emergency, but it protects you from all of your homes experiencing issues at once.
Adam Adler says that the final benefit to owning multiple investment properties in different states is that different states have different rules and laws. One state may allow short-term rentals, while another may not. This allows you to have a mix of vacation rentals and long-term rentals. Being able to mix up the types of investments you have is just another way to diversify your real estate portfolio.
Adam Adler understands that people who are investing in real estate want to make safe and sound investments. One of the best ways that you can protect your real estate investments is to diversify your portfolio. Owning multiple investment properties in different states can help you to weather local dips in the rental market, protect you against a state of emergency harming your rental income, and give you other streams of income based on different rental rules and laws. As such, Mr. Adler strongly recommends investing in properties in different states if you are able.