What You Need to Know About Out-of-State Investing

Investing in real estate outside your home state offers opportunities for cash flow, appreciation, and diversification, but it can also raise confusing tax questions:

Do you pay taxes where the property is located, or in the state you live in?

Can you avoid taxes by investing in states like Florida or Texas that don't impose income tax?

In reality, both your state of residence and the property's location may have tax filing requirements. Each state applies its own rules regarding income sourcing and residency. Whether you're a first-time out-of-state investor or managing a growing multi-state portfolio, knowing how these rules work is essential to filing properly, avoiding double taxation, and planning future investments with confidence.