I want to get my real estate investing career started now. I've been researching and developing my plan for taking control of my financial future, but I just moved from CA to PA and I know I'll only be in the area for two years max. Do I purchase my 1st property to get my feet wet land-lording then keep the property to land lord from afar or do I wait to start in an area I know I will be living longer? I plan on repeating the buy and hold process while I continue to support my family with my full time gig. I know analysis paralysis is the biggest hurdle for most wannabe real estate investors, but I also don't want to jump in if it's advised to wait until I set- up a more permanent residence. Thanks for reading and giving any advice you feel like sharing!
If you plan to keep it after you move out of the area, be sure to figure in property management costs when you do your figures.
Personally, I'd opt for buying simply because you have to start somewhere, and if you have a property for two years, then when you buy the next one you are an "investor" and conventional lenders (or at least my conventional lender) then figure not just your income but add on the potential rental income from the property you are buying to arrive at ratios for lending. And when you move, you'd also have the option of trading property for property where you're going (I don't completely understand that but I know it's doable as I have a friend who did it).
Thanks for the feedback, Tammy!
I am on Tammy's side as well. I would suggest getting started. Why wait another two years to start developing your future?
With the way the market is going as well, you may be in a better position in two years to leverage the equity as well. Then you can do a cash out refi to purchase or a 1031 exchange which I think Tammy might have been referring to. 1031 exchanges are a way to avoid paying capital gains up front a sale.
It is essential though to be mindful of not just investing for capital but for monthly cashflow. The tax benefits on monthly cashflow are favorable over capital gain with a sale of properties.
I am sure this is all as clear as dirt....haha. If you have more questions or want me to clarify, don't hesitate to ask. Best of luck!
I am in a similar situation and was wondering the same thing, so thank you for asking the question, and thanks to Tammy and Karl for the answers. I am with you and will try to get started now too!
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