Where Should I Move... Scenario - Help me plan my future

Where Should I Move... Scenario - Help me plan my future

Middleton, WI · Member since 2016 · 22 posts · 6 votes

Here is your scenario –

Your financial standing is as follows:

  • $80,000 in cash savings
  • $70,000 household salary (will be $100k+ in 3-5yrs)
  • $20,000 debt (school, cc and medical)
  • $0 assets

You are married with no kids and can move anywhere in the U.S. Your only location requirements/desires are as follows:

  • Must have warm weather 9+/mo out of the year
  • Must have good - strong job market (UI Developer/Nurse)
  • Must have relatively low cost of living (unlike the Bay Area)
  • Should have healthy real estate market (rentals and flips)

Here are your long-term objectives/goals:

  • Purchase at least 10 acres of land to build a small house and start a small permaculture farm
  • Become financially independent in 10 years
  • Establish the financial foundations for generational wealth

Given this financial standing, these location requirements/desires and these long-term objectives/goals, and a year to plan/move:

  • Where do you move to and why?
  • How do you start your empire?
  • What challenges/obstacles will you look out for?

To give you an idea of where I've currently been looking here are some places that interest me, though I do have reservations about each:

  • Charlotte, NC
  • Dallas, TX
  • Houston, TX
  • Kansas City, MO
  • Atlanta, GA
  • Jacksonville, FL
  • Reno, NV

My current (10 min) strategy is to buy a duplex, live in half and rent out half. Wait a few years... refi and buy another property... not really sure.

Thank you for helping me plan and I look forward to hearing your ideas and/or advice!

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Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
10y
Wow congratulations! You are truly using the full power of BP. I haven't quite seen someone do it this well. I'm convinced you're going to peg your 10 year goals. I'll bet on it.
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  • Real Estate Agent · Charlotte, NC · Member since 2015 · 24 posts · 10 votes
    10y

    Matthew

          I am in Charlotte NC and I would think this town is exactly suitable for someone in that situation. I have been hear sine 2008. 

    The reason i say Charlotte NC is there lot of scope for development and housing market is good. Schools are great too in some areas. They are developing the infrastructure for current and future needs. 

        I know my answer is not complete so let me know if you have any questions about Charlotte NC. 

  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    Thanks Sid! I'm really interested in Charlotte. What areas do you recommend we check out?

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    10y
    Wow congratulations! You are truly using the full power of BP. I haven't quite seen someone do it this well. I'm convinced you're going to peg your 10 year goals. I'll bet on it.
  • Real Estate Agent · Charlotte, NC · Member since 2015 · 24 posts · 10 votes
    10y

    Matthew,

                  I would recommend Ballantyne/Waxhaw area for you and your family to stay and for investment there are several areas like University, Mint Hill, Matthews, Harrisburg. I am also exploring the areas to invest in buy and hold properties. 

                keep asking questions and if I know the correct answers I will respond back.

    Thanks,
    Sid

  • Investor · Minneapolis, MN · Member since 2015 · 173 posts · 53 votes
    10y

    Don't listen to the advice of others about such a big life decision. You and your family should do your own research and figure out what you want. Don't move your family somewhere you guys don't end up liking to chase real estate because some guy you don't know on the internet said so

  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    Thanks Sid!

    Byron, wouldn't you consider this part of "research"?

  • Charlotte, NC · Member since 2016 · 99 posts · 56 votes
    10y

    Matthew, 

    Those are impressive life goals. I've visited all of the cities you listed multiple times, but lived in four of them, so to those I can speak from experience. 

    I lived in both Houston and Dallas, didn't care for either, a very odd pervasive mentality of geographic bigotry in Texas, Austin being an exception (check out everything2.com/title/TexasMentality). Summers are unbearably humid, with tons of biting bugs everywhere. I enjoy being outdoors, as it sounds you do as well, and it'll be miserable.

    People make up the complexion of a place. That said, above all, avoid Atlanta (aka The New Detroit) like the plague. I lived there over five years (job commitment), and would say it is the worst city in the country. It's the ghetto meets the trailer park. Mercer.com, the most respected city rating from on the planet, has put it at the bottom of their "Quality of Living" in America list for over ten years (Detroit finally took the bottom spot). Dave Gilmartin, in his recent book "The Absolute Worst Places to Live in America" accurately called it "a pseudo-McCity."

    Finally, Charlotte, where I currently live... I agree with Sid, and would highly recommend as one of the best cities in the south. As far as an area or neighborhood, there's a great selection but, as in most cities, it widely depends on your taste and needs. I've lived in Uptown for fourteen years, but I'm a single guy. There are cool neighborhoods rich with rehab and flip potential as well.

    Good luck, and feel free to contact me if you have any other questions.

  • Curtis WatersBusiness Member
    Rental Property Investor · Charlotte, NC · Member since 2013 · 291 posts · 176 votes
    10y

    Mathhew,

    Let me know if I can assist you in Charlotte!

  • Dan BurstainBusiness Member
    Real Estate Agent · Austin, TX · Member since 2014 · 360 posts · 331 votes
    10y

    Hey Matthew,

    I would strongly recommend you add Austin to your list.  It is one of if not the top place to live for young professionals.  It is about to open a huge medical research hospital that will be hiring lots of people like yourself.  I would be happy to answer any questions about the area, market, etc..  Good luck wherever you end up but think about Austin as a possible solution as it looks like it meets all your criteria and then some.  

    Dan Burstain, Investment Realtor51 Review
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    It may not fit what you are seeking in terms of weather, but I think the DC metro area is one of the best places to live in the country. We do have a high cost for housing....but when you take into consideration the higher income the region provides, I think the housing is actually very reasonably priced. With 10 of the 20  highest income counties in the country here (and that doesnt count DC itself since it doesnt qualify as a county), it is pretty hard not to  make a high income here.  Most middle of the road income people I know here have a household income in excess of $200k per year, when measured against a descent home of $500-$550k home, is a pretty good ratio.

  • Member since 2016 · 13k+ posts · 12k+ votes
    10y

    Personal location choice and wanting to be a hippy farmer aside your time line based on your initial plan of a duplex, wait a few years, repeat is not even close to reaching financial independents in 10 years.

    Replacing a income of $100,000K per year in ten years is going to require 40+ doors easily at $200/month positive cash flow. If on the other hand your immersion into the hippy life style involves a simpler way of life then you could obviously get by on less but you need to concentrate on purchasing at a much faster rate.

    You need to target purchasing 1-2 properties a year to meet your goals.

    Generational wealth ? Why. The majority of second generation loose their parents wealth. Just leave them enough to get started building their own wealth.

  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    @Jeff Berg Thanks a ton! Just the kind of feedback I was looking for. Yeah, I've heard about that Texas mentality thing and was a bit concerned about that. I didn't, however, know that about Atlanta. So big thanks for that info... whew. Will be in touch!

    @Curtis Waters Will do.

  • Knoxville, TN · Member since 2016 · 9 posts · 4 votes
    10y
    I agree with everything that has been said about Charlotte. I spent some time there a few years ago and was in love with the area. My brother is living there now and loves it for all the reasons already mentioned, and like Asheville, it is exploding with growth. Have you looked in Knoxville or Chattanooga? They are obviously smaller cities. Both are growing rapidly. Ton of land. Great schools, especially Knoxville (which is where I grew up so this may be a bit biased). I have friends working in hospitals all around Knoxville and they couldn't be happier where they are at.
  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    @Dan Burstain I've heard great things about Austin. My only reservation is the cost of living and housing market both being so high. Job market does look good though! I lived in the Bay Area for a few years and, while Austin may not be on that level of ridiculousness, I just can't bring myself to live in that kind of environment again. Will continue to look into it though, thanks!

    @Russell Brazil Same to you. Thanks for the recommendation but it just doesn't fit my requirements. Cheers!

  • Developer · Austin, TX · Member since 2014 · 266 posts · 110 votes
    10y

    @Account Closed

    I have now lived in both San Francisco and Austin, although there are some similarities, the cost of living isn't even close.  I believe both cities are great to live in, but Austin's barrier to entry in the market is much more realistic for someone just starting out.  Good luck!

  • San Francisco, CA · Member since 2015 · 6 posts · 2 votes
    10y

    i recommend listening to :

    1. Goals by Zig Ziglar

    2. Think Grow Rich by Napoleon Hill

    3. King James Bible, cross reference

    Obedience, can't go wrong

  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    @Thomas S. You know what, I did think about Knoxville but I was hesitant due to its size and location. Never considered Chattanooga, though. Will look into both!

  • Knoxville, TN · Member since 2016 · 9 posts · 4 votes
    10y
    Feel free to message me if you have questions about either and cheers to your future.
  • Dan BurstainBusiness Member
    Real Estate Agent · Austin, TX · Member since 2014 · 360 posts · 331 votes
    10y

    Matthew,

    There are still some inexpensive places in the Austin area.  20-30 minutes from downtown (and available on metro rail if you like) are nice 4-5 bedroom homes under $250K.   It is true there are pockets of Austin that can feel overpriced but trust me there are many places in the area with good schools and very safe neighborhoods that are favorably priced.  Happy to email you some examples if you like.

    Dan Burstain, Investment Realtor51 Review
  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    @Dan Burstain Alright... Alright, you and @David Ferrette have convinced me Austin shouldn't be out of the picture, ha! 

    Appreciate it, will be in contact.

  • Investor · Asheville, NC · Member since 2015 · 187 posts · 112 votes
    10y

    Your situation is pretty similar to ours... we went to a Charles Schwab financial planner (free with Schwab brokerage accounts) and he helped us figure out the nitty gritty of what we really need to do to retire early. I agree with parts of an earlier post that you'll need to be more aggressive, sooner, to make it happen, but not with the need for 40 properties. Interest rates are low enough that if you use conventional financing you should see more like $250-$400 in cash flow per house, if you score good deals and can keep the costs under control.  

    We used a HELOC, plus our cash stash, to buy and rehab a rental, then refinanced and repeated... and repeated... This plan works well but the 6-month delay between buying and refinancing, and the closing costs, make it less than ideal.

    We live in Asheville, which has a strong rental market, but an exceptionally competitive buyer's market, with good deals likely suffering multiple bids, even as FSBOs. It's also really hard to make any money in either of y'all's professions here. In your case, I would move to the Bay area where nursing pays tons, live reasonably, and invest elsewhere, then move once you're set up with good rental income. This worked well for us, and Oakland/Berkeley/Santa Cruz are really fun places to live. Otherwise it'll take too long to establish passive income on regular wages, especially in the Southeast.  

    Good luck y'all!

  • Rental Property Investor · Dallas, TX · Member since 2015 · 106 posts · 66 votes
    10y

    @Account Closed with your situation you are crazy to not move to Dallas. Trust me on that. I did and couldn't have made a better choice. Cost of living and opportunity are amazing. 

  • Real Estate Agent · Allen, TX · Member since 2015 · 106 posts · 13 votes
    10y

    I agreed. Dallas seems to fit your criteria perfectly. What kind of reservation do you have?

  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    @Account Closed Great post! So how else would you have went about acquiring new properties other than the method you did? Private money?

    And are you saying that it's hard to make money in the entire southeast or just Asheville? Because from my (limited) research, Charlotte salaries would place us at around $110k+ in household income. Not bad imo. 

    It's also interesting that you recommended we move to the Bay Area first. Lived there for 2 years recently and loved it but the cost of living is just out of control, making long term residency completely unrealistic. Of course, yes, wages are much higher but along with that comes the crazy high competition. Nevertheless, my quick calculations show that, to your credit, we would come out ahead living in the Bay (Wages - Housing = +30k for the Bay vs Charlotte). However, that would mean living in the Richmond area (longer commute, some pretty sketchy neighborhoods, 1bdrm apt vs 3bdrm house...) and that is not including any other high cost of living expenses that come with living out there (ie. food, insurance, taxes...). Sooo... would we really come out ahead in the end? 

    Playing devils advocate here (because I'm secretly trying to get you to talk me into moving back, ha), how would one go about investing remotely? Especially across the country? Any sort of rehab based investment seems unrealistic, or no?

    A lot of questions there for ya, but you really have got me playing around with this idea some more. 

    Thanks!

  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    @Carl Dean Thanks for the feedback. My reservations are similar to what was mentioned before: the "texas mentality/bigotry", the scorching heat and dryness... uh??? not much else I guess. But coming from a freezing cold, liberal mecca (haha) like Madison to that might be too much. Or not. 

    What are your guys selling points for the Dallas area? Is small scale farming even a thing down there?

    Thanks!

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