Where to Invest in Real Estate: Local or Remote?
Where to Invest in Real Estate: Local or Remote?
- December 19, 2025
- 2 min read
Local investing works well in some markets, but in high-priced metros, looking beyond your backyard can unlock better returns.
In this post, we explain why many investors stick to their local markets, when that instinct can limit returns, and how to find better opportunities elsewhere in the country.
Why Investors Usually Buy in Their Local Markets
Local markets may feel manageable because investors know the neighborhoods and schools, and they can respond quickly when issues arise.
In affordable markets where rents support strong returns, investors can find profitable opportunities. However, in expensive metros—where high prices and operating costs reduce returns—it may be worth looking beyond local investing and taking a more flexible, market-agnostic approach.
Limitations of Investing Locally
Investing locally can introduce constraints that may reduce flexibility and weaken returns.
Here are some limitations of investing locally:
- In some metros, high home prices make purchasing less affordable and may not yield positive cash flow.
- In certain markets, weaker tenant demand and slower job and population growth can lead to higher vacancy costs.
Diversification Through Remote Real Estate Investment
Rental investing in another city or state is easier than most investors realize. In practice, remote ownership is already common across the U.S. rental market.
According to Zipdo, single-family rentals make up to 70% of all rental homes in the United States, and over 80% are managed remotely. This signals a booming rental market designed for the modern, remote-first investor.
Successful remote investing starts with understanding the fundamentals of each market. Investors need to know income levels, population growth, school quality, rent levels, and local economic conditions to determine whether a market supports long-term rental demand.
Beyond market-level research, investors must analyze individual deals using consistent return metrics. Factors such as net operating income, cash-on-cash return, and total return help determine whether a property meets return targets.
Managing a property from afar also requires reliable local support. Licensed real estate agents and property managers can serve as your local team to handle acquisition, leasing, and day-to-day operations, making physical proximity less critical.
Ami’s experience shows how profitable remote investing can be. Ami purchased a rental property in Indianapolis for $145,000 a few years ago, with only a $38,000 down payment. From day one, the rental income covered the mortgage, providing immediate cash flow. Over the years, the property almost doubled in value, and the overall return grew 5x over 7.5 years.
Deals like this may not exist locally where investors live. That’s why Butterflo helps investors find properties across the U.S. that align with their preferences and return targets.
Butterflo streamlines this process by combining market research, deal analysis, and access to local professionals in one place, allowing investors to compare opportunities and buy across multiple markets more efficiently and profitably.
Conclusion
The feeling that local investing is more comfortable comes from emotion, not investment strategy. The real question is not “local or remote”—it’s whether the deal is profitable. Regardless of whether you invest locally or remotely, finding a good deal requires thorough due diligence.
Butterflo’s ‘Find Properties’ and ‘Property Details’ features equip remote investors with market insights, deal analysis, and access to local resources such as realtors and property managers. As a result, remote investing is now practical and accessible.