It continues to amaze me how many real estate investors manage to choose convenience ahead of location when considering a transaction. Of course, it is easier to work with opportunities that are within proximity. You may have knowledge of surrounding areas that come from being in and around the area for years.
However, when it comes to crunching the numbers, comparing an opportunity against those outside of your geographic sphere could reinforce or discourage a decision ahead of possible consequences. I often ask my coaching students to compare an opportunity they are considering against one hundreds of miles away in terms of cost and benefits. Doing so does not mean they should jump to a "foreign" opportunity, but it might be enough to make them reconsider their thinking.
One prominent example is property taxes. I see a lot with residential, where the same house 20 miles away might cost $250 per month LESS because of much lower property taxes. The impact of these consequences can be even more significant on the commercial real estate side. Commercial often has different considerations than residential.
The (below linked) article shows how much difference property taxes could make on expenses surrounding an acquisition and future income potential. While it adds to the preliminary research, it might show a similar opportunity could be more profitable (or accomplish your purpose) within a completely different area. If not, you have even more of a base of comparison to further justify your original decision to partners, team members, and/or other investors.
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