I'm a new investor, and I've recently moved from Southern NJ to Northern VA. I lived in NJ for 40+ years, know the local market well, have relationships with a few contractors, and am a member of the local REIA. Now that I've moved out of state, does it make better sense to buy in my old state as a now out-of-state investor? The only thing I don't like about NJ is the ridiculously high property taxes. I'd need a property manager since I'm 3+ hours away, which would affect my cash flow.
My other thought was to look into the Richmond VA area, which is also 3 hours away, but where having a property manager may not be as impactful to my cash flow.
Virginia Beach, VA · Member since 2023 · 10 posts · 3 votes
3y
While it may seem like a big cost to have a property manager, it pays for itself. I am a big proponent at hiring someone to do the things that you either don't know how to do (that's why we have experts) or if you don't have the time to do it (your time has a monetary number as well). As for Richmond, that area and down into the Hampton Roads area is more affordable than other parts of NOVA. Your dollar can purchase more house or multiples. If you want to discuss the area I would be happy to chat. I am an Investor agent in the Hampton Roads area.
Real Estate Agent · NH & MA · Member since 2021 · 457 posts · 291 votes
3y
Depends on what strategies work in each market and what your goals are, and you’re strengths. My first rental was out of state, but that was mainly because my market is high priced, older homes that rarely cash flow, and I had a good team in place to help me out of state where I could get better cash flow.
For your first investment I recommend being driveable unless you are very comfortable you’re team/connections can help you take on a project far away
@Bryce Jamison - Thanks for the reply! I really don't want to invest in the market I'm in now because it is so pricey. I only plan to be in this area for a year before I relocate and that next stop would be a house hack. My goal is to find a SFH in the next 90 days, which is pretty aggressive, then start looking for that house hack.
@Christian Ehlers - Thanks for the reply! I have confidence in my contractors, who's done several jobs for me. His realtor wife set me up with MLS searches, but she's not a real estate investor agent, so I'd be educating her. I want to purchase a SFH in the next 90 days, then move to a house hack in another area as the NOVA move was only a pit stop.
Virginia Beach, VA · Member since 2023 · 10 posts · 3 votes
3y
While it may seem like a big cost to have a property manager, it pays for itself. I am a big proponent at hiring someone to do the things that you either don't know how to do (that's why we have experts) or if you don't have the time to do it (your time has a monetary number as well). As for Richmond, that area and down into the Hampton Roads area is more affordable than other parts of NOVA. Your dollar can purchase more house or multiples. If you want to discuss the area I would be happy to chat. I am an Investor agent in the Hampton Roads area.
@Josh Uhlenkamp - absolutely agree about paying for skill and convenience. If I was local to my market, I'd be doing some, but some all things myself. Appreciate the contact for the Hampton Road area. I'll be in touch!
I'm a new investor, and I've recently moved from Southern NJ to Northern VA. I lived in NJ for 40+ years, know the local market well, have relationships with a few contractors, and am a member of the local REIA. Now that I've moved out of state, does it make better sense to buy in my old state as a now out-of-state investor? The only thing I don't like about NJ is the ridiculously high property taxes. I'd need a property manager since I'm 3+ hours away, which would affect my cash flow.
My other thought was to look into the Richmond VA area, which is also 3 hours away, but where having a property manager may not be as impactful to my cash flow.
Hi Jamy!
If you are still curious about the Richmond area I would love to connect. I can give you insight and ideas about what the cost of the area is for property and taxes. Reach out if you need anything out this way.