Single-family homes outside of Portland, OR vs. multi-family properties outside Chicago, IL.
Hello all! My name is Zach, and I am brand new to the forum and really excited to be here and learn about real estate investing!
My wife and I are newly-wed and 24 years old. We are looking to expand our real estate portfolio while we are still young. She is the owner of two rental properties (single family) outside Portland Oregon. For the past 10 years or so, these properties have been managed by her parents and her Aunt. However, now that she is older and married, she and I are about to take over management responsibilities ourselves.
However, we live outside Chicago, 2000 miles away from the rental properties. As we take over management responsibilities, our aunt has recommended that we refinance the homes to lower our interest rates and monthly payments. However, at this point we are wondering if we should pursue sell the Oregon properties and pursue a 1031 for one or more properties in the area that we're living in outside Chicago.
We really don't like the idea being absentee landlords and managing properties from all the way across the country. So we we're toying with the idea of pursuing a multi-family property that we could rent out to multiple tenants in Chicagoland.
I am speaking out of complete ignorance, but I feel like the net return for a multi-family in Chicago will be higher than two single family homes outside of Portland.
Thoughts? Questions?
Thanks so much for your time! :)