Maintaining a primary residence in one state while holding real estate in another is a common practice. For example, an individual might reside in Texas but own a vacation home in Colorado or an investment property in California. This scenario creates unique legal and financial considerations.
The ability to reside in one location and invest in property elsewhere offers significant advantages. Diversifying assets geographically can protect against regional economic downturns. Owning property in a desirable vacation destination allows for personal enjoyment and potential rental income. Historically, land ownership has been a pathway to building wealth, and this cross-state ownership allows individuals to capitalize on opportunities in different markets. This practice can also offer tax advantages, depending on the specific state laws and individual circumstances.