Out of state real estate investing is the practice of purchasing and owning rental properties in states outside an investor’s home market, allowing access to lower-cost markets, professional management, and portfolio diversification without requiring local property visits. Out of state real estate investing has traditionally meant buying a physical property you barely see and hoping your property manager handles everything. That model worked for some, but it locked out anyone without $50,000 in cash sitting for a down payment and a high tolerance for management headaches. In 2026, online real estate investing platforms have changed the equation entirely. From fractional share platforms starting at $20 to SEC-regulated REITs and tokenized properties, out of state real estate investing is now accessible to virtually anyone — whether you have $20 or $50,000 to deploy.
The best online platforms for out of state real estate investing combine low minimums, professional property management, transparent fee structures, and liquidity options that did not exist five years ago. After reviewing the top players — Ark7, Fundrise, Arrived, Lofty, RealtyMogul, and CrowdStreet — we have broken down exactly how each platform works, what it costs, and who it is best for.
Key Takeaways
- Ark7 offers the lowest barrier to entry at $20 per share with monthly dividends and a secondary market for liquidity — ideal for new remote investors
- Fundrise provides diversified eREIT exposure starting at $10 for fully hands-off portfolio building
- CrowdStreet offers direct commercial deal selection for accredited investors targeting higher return potential
- Lofty’s daily rent distributions appeal to those prioritizing cash flow frequency above all else
- Platform minimums range from $10 (Fundrise) to $25,000 (CrowdStreet), making out-of-state real estate investing accessible at virtually every budget level
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Explore Ark7 OpportunitiesBarriers to Traditional Out-of-State Real Estate
For decades, out-of-state real estate investing meant buying a rental property in a market you researched online, hiring a property manager you hoped was competent, and hoping the numbers worked out. It worked for some, but five structural problems made it impractical for most.
The down payment barrier. A typical rental property costs $200,000 to $400,000, requiring $40,000 to $80,000 for a 20% down payment — before closing costs and reserves. That locked out investors without substantial cash on hand.
Property management risk. The single biggest variable in traditional out-of-state investing is the property manager. A bad PM can destroy cash flow through mismanagement, deferred maintenance, or vacancy neglect. Vetting a PM from across the country is difficult without local connections, making turnkey real estate investing a popular alternative.
Complete illiquidity. Traditional rental properties cannot be sold quickly. Exiting means a 30-90 day closing, 5-6% agent commissions, and the risk of selling into a down market. There is no way to access your capital without selling the entire property.
Knowledge barriers. Successful out-of-state investing requires understanding local market dynamics — school districts, employment trends, landlord-tenant laws — in a market you do not live in. Online platforms solve this by performing the local research, acquisition, and management on behalf of investors.
Operational complexity. Managing properties across state lines means dealing with multiple tax jurisdictions, remote contractor coordination, and tenant issues that require immediate attention from hundreds of miles away. Platforms that handle end-to-end management remove this burden entirely.
Online real estate investing platforms address all of these problems simultaneously, which is why the market is projected to grow from $31 billion in 2026 to over $370 billion by 2033.
Why Out of State Real Estate Investing Is Booming in 2026
The online real estate investing market is projected to reach $31.07 billion in 2026, growing at a 44.9% CAGR to $370.8 billion by 2033, according to Research Nester. This explosive growth reflects a fundamental shift in how people invest in real estate across state lines.
Three forces are driving this. First, the barrier to entry for traditional real estate is higher than ever: with the median US home price at roughly $400,000, a 20% down payment requires $80,000 in cash that most would-be investors simply do not have. Second, remote work has made geographic flexibility the norm, and investors are no longer tethered to their local market when choosing where to put capital to work. Third, a generation of new investors — many under 35 — expects the same frictionless experience they get from stock trading apps, applied to real estate.
According to HousingWire, only 5.56% of real estate transactions in 2025 involved out-of-state buyers purchasing properties through traditional channels. Online platforms are expanding that pool by removing the capital and management hurdles that previously made remote investing impractical.
Traditional out-of-state investing required local boots on the ground — real estate agents, inspectors, contractors, and property managers you had to vet from hundreds of miles away. Today, an out-of-state investor can buy shares in a professionally managed rental property in under ten minutes without ever visiting the market. The platforms do the vetting, the acquisition, the tenant management, and the dividend distribution.
How Much Capital Is Needed to Start?
The answer ranges from $10 to $25,000, depending on which platform you choose. Ark7 offers fractional shares starting at $20 per share, where a single share represents proportional ownership of an LLC that holds a rental property. Fundrise starts at $10 for its eREITs. Arrived requires $100 for individual property shares. Lofty starts at $50 with blockchain-based tokens.
For investors with more capital, RealtyMogul’s REITs start at $5,000, while individual property deals require $35,000 or more. CrowdStreet, the highest bar, requires $25,000 and accredited investor status.
The key insight for 2026 is that you no longer need a down payment. Every dollar you invest buys proportional ownership of professionally managed properties — no mortgage, no closing costs, no surprise repairs. This is the core value proposition of the entire fractional real estate category.
1. Ark7
Ark7 is a fractional real estate platform founded in 2018 that allows investors to buy shares of individual rental properties — single-family homes, multifamily units, and short-term rentals — starting at $20 per share. With over 230,000 active investors and more than $23 million in property value funded, Ark7 has established itself as the most accessible platform for out-of-state investors who want direct property ownership without accreditation requirements.
Unlike Fundrise, which pools investments into diversified funds, Ark7 offers shares of specific properties. You can scroll through available properties, review their financial projections and historical performance, and choose exactly which buildings you want to own shares in. Each property is structured as its own LLC, and shareholders receive proportional monthly dividends from the rental income.
The platform has paid out over $3.5 million in lifetime dividends to investors. As of 2026, Ark7’s portfolio maintains a 94.81% occupancy rate across its properties, with an average dividend yield of 4.36% (past performance does not guarantee future results). Dividends are distributed on the 3rd of every month — a monthly cadence that sets Ark7 apart from most competitors who distribute quarterly.
Key Features
- $20 minimum investment — no accreditation required
- Monthly dividends paid on the 3rd of each month
- Zero AUM fees (only 3% sourcing fee + 8-15% property management fees)
- PPEX ATS secondary market for trading shares after a one-year holding period
- IRA investing support (Roth and Traditional through Millennium Trust)
- Direct property selection — choose individual properties, not a fund
- Full fee transparency: 3% acquisition fee + 8-15% property management
Pricing
Ark7’s fee structure is unusually transparent for the fractional real estate space. The platform charges a 3% sourcing (acquisition) fee when a property is purchased, and property management fees ranging from 8% to 15% covering tenant placement, maintenance, and operations. Ark7 charges zero AUM fees — meaning you pay nothing annually on your invested capital. This is a significant differentiator against competitors like Fundrise (1% annual AUM fee) and Arrived (0.4-1.2% AUM fees).
Why teams choose Ark7
Out-of-state investors choose Ark7 because it solves the two hardest problems of remote investing in a single platform: property sourcing and acquisition, tenant management, and dividend distribution are all handled end-to-end. The secondary market on PPEX ATS provides liquidity that most fractional platforms cannot match — investors can sell their shares after the one-year holding period, rather than waiting years for a fund exit or property sale. The combination of a $20 minimum, zero AUM fees, and monthly dividends makes Ark7 the strongest entry point for anyone building an out-of-state real estate portfolio in 2026.
2. Fundrise
Fundrise is the largest and most established real estate crowdfunding platform, having launched in 2012 and having invested over $7 billion in real estate cumulatively. The platform pioneered the concept of eREITs — diversified real estate investment trusts that pool investor capital across residential and commercial properties, construction projects, and debt investments. For out-of-state investors who prefer a fully hands-off approach without selecting individual properties, Fundrise offers the simplest on-ramp at a $10 minimum.
Fundrise operates on a fund model rather than direct property ownership. Investors put money into one of several eREITs or eFunds, each with a specific strategy — income generation, growth, or a balanced approach. The platform handles diversification across property types and geographic markets automatically. For out-of-state investors, this removes the need to research individual markets or properties entirely.
The platform has published annual returns ranging from -7.45% to 22.99% across different funds and years, with income returns averaging around 4.81% annually from dividends. However, redemption is restricted to quarterly windows with limited capacity, meaning investors cannot access their capital on demand. For out-of-state investors who want fully diversified real estate exposure with zero property selection effort and a $10 minimum, Fundrise is the simplest choice.
Key Features
- $10 minimum investment
- Diversified eREIT and eFund portfolios — no individual property selection
- Quarterly redemption windows with limitations
- No accreditation required
- Available for IRA accounts
- Automatic reinvestment options
Pricing
Fundrise charges a 1% annual advisory fee (0.15% advisory + 0.85% management). This is below the typical 2% management fee charged by traditional private real estate funds, and the lack of carried interest makes it relatively affordable for passive investors. However, the 1% annual fee applies to your entire invested balance and compounds over time.
3. Arrived
Arrived is a fractional real estate platform backed by Jeff Bezos and Marc Benioff that focuses exclusively on single-family rental homes. Founded in 2020, Arrived has funded over 400 homes with more than $185 million in assets under management. For out-of-state investors interested in exposure to the single-family rental market, Arrived provides curated property selection with an emphasis on Sun Belt and Southeast markets.
Arrived operates similarly to Ark7 — you buy shares of individual rental properties — but with a few important differences. The minimum is $100 per share, and dividends are paid quarterly rather than monthly. The platform charges an AUM fee ranging from 0.4% to 1.2%, plus sourcing fees at acquisition.
Returns on Arrived properties have typically fallen in the 5-7% annual range, combining rental dividends and property appreciation. The platform’s backing from high-profile investors gives it strong credibility, and the focus on single-family homes aligns with a core segment of the rental market that has shown consistent demand. For out-of-state investors who want dedicated single-family rental exposure with curated property selection, Arrived offers a well-capitalized option at a $100 minimum.
Key Features
- $100 minimum investment
- Quarterly dividend payments
- Focus on single-family rental homes
- No accreditation required
- IRA-eligible
- Backed by Jeff Bezos, Marc Benioff, and other prominent investors
Pricing
Arrived charges a 0.4-1.2% AUM fee based on investment size, plus a sourcing fee on property acquisition. The AUM fee is ongoing and deducted from returns each year. Compared to Ark7’s zero AUM model, Arrived investors pay for the platform’s services through a recurring annual charge rather than a one-time acquisition fee only.
4. Lofty
Lofty takes a different approach to fractional real estate: tokenization on the Algorand blockchain. Founded in 2021, Lofty allows investors to buy tokenized shares of individual rental properties starting at $50, with daily rent distributions — the only platform in this comparison that offers daily rent distributions. For out-of-state investors who value cash flow frequency above all else, Lofty’s daily dividend model is unique.
Unlike traditional REIT or LLC structures, Lofty uses blockchain tokens to represent ownership shares. Investors can sell their tokens on Lofty’s secondary marketplace with no lock-up period, offering more liquidity than most competitors. The platform lists approximately 40+ active properties with an average property size around $200,000 and rental yields ranging from 6% to 10% annually.
However, the blockchain structure introduces both complexity and risk. Tokenized real estate is a newer regulatory category, and the long-term legal framework is less established than the SEC-regulated LLC structure used by platforms like Ark7. The 3.5% fee per trade on the secondary market also means that frequent trading eats into returns. For out-of-state investors who value cash flow frequency above all else, Lofty’s daily rent distribution model is the only option of its kind.
Key Features
- $50 minimum investment
- Daily rental income distributions — highest frequency available
- Blockchain tokenization on Algorand
- No accreditation required
- Voting rights on major property decisions
- Secondary marketplace with no lock-up period
Pricing
Lofty charges a 3.5% fee on secondary market trades (both buying and selling). There is no annual AUM fee. The platform generates revenue from trading spreads rather than ongoing management fees. Property management costs at the property level vary by location, typically ranging from 8% to 12%.
5. RealtyMogul
RealtyMogul, founded in 2012, operates as an online marketplace for private real estate investments with a dual offering: publicly available REITs and accredited-only individual property deals. For out-of-state investors, the REIT product provides the most accessible entry point at a $5,000 minimum, while individual deals require accredited status and $35,000 or more.
The platform’s two REITs serve different strategies. The Income REIT holds debt and equity investments across office and retail properties, focusing on monthly income generation. The Growth REIT holds equity and preferred equity positions in value-add multifamily properties, targeting long-term appreciation with quarterly income. Both REITs are available to non-accredited investors.
RealtyMogul charges no direct platform fee. The REITs carry a 1% to 1.5% annual asset management fee depending on investment size, with the Income REIT also charging up to 3% when investors sell shares. Individual property deals have their own fee structures set by the sponsor. For out-of-state investors with at least $5,000 who want monthly income from commercial real estate REITs, RealtyMogul offers a middle ground between retail and accredited-only platforms.
Key Features
- $5,000 minimum for REITs; $35,000+ for individual property deals
- Monthly dividends on Income REIT; quarterly on Growth REIT
- No direct platform fees
- Non-accredited investors can invest in REITs only
- 24/7 customer support via phone
- Self-directed IRA investing supported
Pricing
RealtyMogul’s REITs charge 1% to 1.5% annual asset management fees. The Income REIT also charges a fee of up to 3% of your contribution when selling shares. Individual property deals have variable fee structures disclosed in each deal’s offering documents.
6. CrowdStreet
CrowdStreet operates as a marketplace that connects accredited investors directly with real estate operators (sponsors) offering individual commercial real estate deals. Unlike the other platforms in this comparison, CrowdStreet is not a fund or fractional share platform — it is a deal marketplace where you select specific commercial properties to invest in directly.
Founded in 2014, CrowdStreet has facilitated over $4 billion in real estate investments across office, industrial, multifamily, and retail properties. Target returns range from 14% to 20% IRR on individual deals, but these are projections and actual results vary significantly.
CrowdStreet is accredited investors only and requires a minimum of $25,000 per deal. This positions it as the least accessible platform for new out-of-state investors but also the one with the highest potential upside for experienced investors who can evaluate deal quality. The platform does not provide any liquidity — you are locked in until the property is sold or the investment term expires, which can be 3-7 years. For accredited investors with substantial capital who want direct control over deal selection and higher return targets, CrowdStreet is the most suitable platform.
Key Features
- $25,000 minimum per deal
- Direct deal — choose specific commercial property investments
- Accredited investors only
- Target IRRs of 14-20% (projections, not guaranteed)
- No platform fees; costs included in deal structures
- No secondary liquidity — capital locked until property exit
Pricing
Pricing is not disclosed publicly by CrowdStreet. Fees are built into each individual deal and vary by sponsor and property type. Investors should review the fees section of each deal’s offering documents carefully, as sponsor fees (acquisition, asset management, disposition) vary widely across sponsors and can significantly impact net returns.
Which Online Platform Is Best for Out-of-State Investing?
The right platform depends on your capital, investment style, and goals. Here is how to choose:
If you have limited capital ($20 to $500): Ark7 is the strongest option. The $20 minimum, zero AUM fees, and monthly dividends make it the most cost-effective entry point with direct property selection and a real secondary market.
If you want full diversification with minimal effort: Fundrise is the right choice. The eREIT structure automatically diversifies across properties and markets, and the $10 minimum is the lowest in the space. Just be comfortable with limited liquidity and quarterly dividends.
If single-family rentals are your focus: Arrived offers curated single-family home investments with strong brand backing. The $100 minimum is reasonable, but factor in the ongoing AUM fees eat into returns compared to zero-AUM alternatives.
If daily cash flow matters most: Lofty is unique in offering daily rent distributions. The blockchain token model provides flexibility, but trade fees and regulatory novelty are real trade-offs.
If you have $5,000 to deploy: RealtyMogul’s REITs provide monthly income with access to commercial real estate exposure at a mid-range minimum.
If you are an accredited investor targeting high-yield commercial deals: CrowdStreet offers direct access to institutional-quality deals with higher return potential, but you sacrifice liquidity entirely and need $25,000 minimum per deal.
Decision Framework
| Your Situation | Best Platform | Why |
|---|---|---|
| First-time investor, under $100 | Ark7 | $20 min, zero AUM, monthly dividends, liquid secondary market |
| Diversified portfolio, $10-$500 | Fundrise | Automatic diversification across markets and property types |
| Single-family rental exposure | Arrived | Curated SFR properties with strong backer |
| Maximum cash flow frequency | Lofty | Only platform with daily rent distributions |
| Mid-range budget, $5,000 | RealtyMogul | Monthly income from commercial REITs |
| Accredited, $25K+ | CrowdStreet | Direct deal selection, 14-20% target IRRs |
Final Verdict
Online real estate investing has radically lowered the barriers to out-of-state real estate investing. The best platforms combine professional property management, low minimums, transparent fees, and liquidity that make remote investing practical for the first time, making out of state real estate investing a realistic option for anyone.
For most out-of-state investors — especially those starting out — Ark7 represents the strongest combination of factors: a $20 minimum that eliminates the capital barrier, zero AUM fees that preserve your returns, monthly dividends for regular cash flow, and a secondary market that provides liquidity absent from most of the competition. With 230,000+ investors, $23 million+ in property value funded, and a 4.36% average dividend yield, the platform has the track record to back up its features.
For investors with different priorities, Fundrise (diversification), Lofty (daily cash flow), CrowdStreet (accredited high-yield deals), Arrived (SFR focus), and RealtyMogul (commercial REITs) each serve specific needs well.
If your goal is to begin out-of-state real estate investing with minimal capital, transparent costs, and direct property ownership, Ark7 is the strongest option available in 2026.
Frequently Asked Questions
What are the benefits of out-of-state real estate investing?
The three main benefits of out-of-state real estate investing are access to more affordable markets, professional property management, and portfolio diversification. By investing in markets with lower property prices, investors can enter markets that would be unaffordable in their home state. Online real estate platforms handle all property management, tenant placement, and dividend distribution remotely, eliminating the need for local boots on the ground. Diversifying across multiple geographic markets also reduces risk concentration in any single local real estate market.
Best states for out-of-state real estate investing?
Texas, Florida, Alabama, and Arizona are consistently ranked among the best-performing markets for out-of-state investors. Texas offers landlord-friendly laws, no state income tax, and strong population growth driving rental demand. Florida provides high tourism-driven short-term rental opportunities and no state income tax. Alabama features some of the lowest property prices in the country with healthy rent-to-price ratios. Arizona combines population growth with a strong job market and landlord-friendly regulations. Online platforms like Ark7 and Fundrise invest across these markets automatically, giving investors diversified exposure without having to choose specific states.
Best platform for out-of-state real estate investing?
The best platform depends on your budget and goals. For most investors starting out, Ark7 offers the best combination of low minimum ($20), zero AUM fees, monthly dividends, and secondary market liquidity. Fundrise is better for those who want fully diversified exposure without picking individual properties.
Minimum investment for out-of-state real estate online?
Minimums range from $10 (Fundrise) to $25,000 (CrowdStreet). The most accessible platforms are Ark7 at $20, Lofty at $50, and Arrived at $100. Investors with more capital can access additional options like RealtyMogul ($5,000) and CrowdStreet ($25,000).
Invest in out-of-state real estate without visiting?
Online platforms handle everything remotely. You browse available properties on the platform, review financial disclosures and historical performance, buy shares, and receive dividends automatically. The platform manages property acquisition, tenant placement, maintenance, and distributions — no travel required.
Is out-of-state real estate investing safe?
All real estate investing carries risk, including potential loss of principal. Online platforms reduce some risks (bad tenant management, lack of diversification) but introduce others (platform risk, limited liquidity, fee complexity). Platforms like Ark7, Fundrise, and others are SEC-regulated and provide detailed disclosures. Check the Ark7 blog for more educational content on managing investment risk.
What fees do online real estate platforms charge?
Fee structures vary significantly. Ark7 charges a one-time 3% sourcing fee plus 8-15% property management, with zero AUM fees. Fundrise charges 1% annually. Arrived charges 0.4-1.2% AUM plus sourcing. Lofty charges 3.5% per trade. RealtyMogul charges 1-1.5% for REITs. CrowdStreet fees are deal-dependent. Always review the fee schedule before investing.
Is accreditation needed for these platforms?
No. Most of the platforms reviewed here — Ark7, Fundrise, Arrived, Lofty, and RealtyMogul — are open to all investors regardless of accreditation status. RealtyMogul offers non-accredited access to its REITs but requires accreditation for individual deals. CrowdStreet is the only platform in this comparison that requires accredited status for all investments.
What’s the difference between out-of-state investing and real estate syndication?
Syndication is a specific model where a sponsor pools capital from multiple investors to acquire a property, with the sponsor managing the deal. Some online platforms use syndication-like structures (CrowdStreet), while others (Ark7, Lofty) use fractional LLC share models or fund structures (Fundrise). The key difference is that platforms provide ongoing liquidity options and lower minimums, while traditional syndications are illiquid and typically require $50,000+.
Invest through a retirement account?
Yes. Ark7, Fundrise, Arrived, Lofty, RealtyMogul, and CrowdStreet all support IRA investing through self-directed IRA custodians. Ark7 partners with Millennium Trust Company for Roth and Traditional IRA investing. Check with the specific platform for their supported custodian and account setup process.
Disclaimer: This article is for educational purposes only and does not constitute financial or investment advice. All investing carries risk, including potential loss of principal. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.
