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.
See this reply in the discussion

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  • Madison, WI · Member since 2016 · 7 posts · 1 vote
    10y

    Hello, Santiago from Madison, Wi. Is Madison to small of an area for buy and hold?

  • Dallas, TX · Member since 2015 · 11 posts · 3 votes
    10y

    Hi @Account Closed , I have lived in Dallas for the past 16 years and have not experienced the aforementioned "texas mentality/bigotry." What I can tell you is that Dallas is truly awesome! It is such a melting pot and I can't tell you how many people I have met here who have moved here from other states, cities, and countries etc. Not to mention, that most people have told me that despite all of places they have travelled and lived, Dallas is their favorite... Now I know this sounds too good to be true but I just thought I would share. My personal experience is that the cost of living is wonderful, it's a great place to do business, and it's a hot market for REI. Regarding small scale farming, I have no knowledge, but I will tell you community supported agriculture is big here, there are great local farmer's markets...so perhaps small scale farming is an option? Regarding the heat, August is the worst! However, I have adjusted to the heat through the years, and the beautiful spring/fall seasons along with the mild winters, make it all worthwhile to me. Best of luck on your endeavors!

  • Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes
    10y

    @Account Closed comments about the Asheville market.  However within an hours drive of Asheville there are a multitude of options that are less competitive and have a much lower barrier to entry.  In addition I would strongly suggest looking into vaction rentals in Asheville as an optional method of rental income.  I have a friend in West Asheville renting their place nightly and are literally booked solid at $250 night.  She luckily has a lot that will accomadate another residence and we are going to build her a tiny home, which once built should create enough income for her to quit her job and just manage the two rentals.  I would also say there are quite a number of cool university towns across the southeast that would fit your criteria as well.  

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

    Hey Santiago, I'm not active in the market but I would say it actually is a fairly good place to buy and hold. 

  • Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes
    10y

    I visit Dallas every so often and cruise my rentals for upkeep...but my current one is in San Antonio, and about ready to hit the rental market.

    I've been averaging one SFH every three years but I live-in and rehab as I go.

    I prefer San Antonio. A lot.

    And for you, there's the regional medical center, a technology and educational base that supports the local economy and complements the military bases and their support industries around town.

    The market is very strong.

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

    Rock on.  Sounds like you're taking this decision seriously and looking at it from all angles, as you should. We lived in a surprisingly nice 1 BR apartment in a relatively safe area overlooking Lake Merritt and downtown, for $1450. We spent the same amount on other expenses overall since I didn't have to travel to support my surf, ski or kayaking habits.  :)  I worked in the ICU at Alta Bates, and aside from an insanely mean boss, was happy making $130k plus ridiculous benefits, with the opportunity to make more with overtime. Maybe our setup was unusually good, but it let us come out of PA and NP school with minimal debt.  Wages for nurses in the Southeast are rotten, at about 1/3 what I was making in Oakland.  :(  Hopefully your career will have a more reasonable payout here. 

    You're right to hesitate to buy remotely- I think you'd need a trusted ally, such as a friend or family member, you could hire to do the groundwork for you. This is my current mode since I work in Texas and live in Asheville, and it works great since I have the right ally and pay him well. 

    I'm not sure about other money sources, but I think your income, credit and cash stash should set you up pretty well to use conventional financing, at least for the first 3-4 buys. I think using high-interest business or private money loans is only sustainable if you have super high-paying properties, which are beyond my scope. I buy semi-decent little houses, and try to end up with around a 1.2% ratio of monthly rent to overall purchase, rehab and finance cost. I haven't actually pulled that off yet, but even the ones that are around 1.1 to 1.15 pay well for me. 

    Let me know if I can offer any more info, and good luck!

  • Realtor · Argyle, TX · Member since 2015 · 19 posts · 4 votes
    10y

    @Account Closed I'm a Real Estate Agent in the Dallas Fortworth Metroplex. Feel free to friend me on here and I can answer any questions you have about the market or potential properties. Aside from investing and real estate, living here is a blast. The people are kind and helpful, the economy is stable, and cost of living is reasonable. Feel free to reach out!

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

    Thanks for your feedback and input @Account Closed

    Appreciate it!

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

    Again, thanks for the input @Robert Melcher and @Andrew Clark . Will be taken into consideration!

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

    @Account Closed Man, I am absolutely floored at how much you were getting paid! Was that for an RN or NP position? And a 1 bdrm next to Lake Merritt for $1450? Wow, equally surprised! 

    From the sound of it, that was a great decision for you guys. One last question, you said you work in Texas but live in Asheville, NC? How does that work?

  • Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
    10y

    Asheville and the surrounding towns are great places to live and raise a family. Like @Kyle H. said, there are lots of places within an hour you can easily invest for lower costs and less hassle. One word of caution though. I'd avoid doing vacation rentals in the Asheville area because the city has been putting a stop to it. Folks renting their places short term have been told to stop or pay huge fines. The city has even gone so far as to monitor sites like VRBO, Airbnb, etc to find out who has short term rentals and stop it. If you want to do vacation rentals, I'd recommend going to any of the outlying towns/cities where your business will be welcomed and appreciated.

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

    @Account Closed Thanks! And why exactly are these vacation rentals a bad thing? Pardon my cluelessness, ha.

  • Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
    10y

    That is a great question, and I wish I knew the answer. I think it falls somewhere between tax collection, protecting hotels and just plain stubbornness. What I do know is the fines are very high at $500 per day if you are found in violation. Many people who bought properties based on the income they generated as short term rentals are finding themselves in big trouble since they can no longer collect that income. Here is a story on the topic...Lawsuit: Can Asheville ban short-term rentals?

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

    "Man, I am absolutely floored at how much you were getting paid! Was that for an RN or NP position? And a 1 bdrm next to Lake Merritt for $1450? Wow, equally surprised!

    From the sound of it, that was a great decision for you guys. One last question, you said you work in Texas but live in Asheville, NC? How does that work?"

    That was a regular RN, back when I still just had my associate's degree. 12-hour dayshift ICU, with CCRN bonus. The unions have the hospitals by the short hairs out there. A friend of mine just moved to Santa Cruz and is making more. He's stoked.  Not sure what Oakland rentals have done since then, but other than being a top floor corner with an unusually nice view, it seemed like the usual deal for apartments there. There were some around Lake Merritt for $1200, but more run down than ours and no view. Asheville housing is pricey too, probably 2/3 that in general, so not a big difference for us. 

    Yup, living in AVL and working in Texas is just plain weird. The VA is in an awful bind, so I'm taking the long commute to help them with the infamous disability backlog- and can proudly say that I am personally responsible for a significant reduction in overall wait times :)

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

    @Account Closed Thanks! Houston is still on my list for sure.

  • Investor · Lake Forest Park, WA · Member since 2015 · 108 posts · 35 votes
    10y

    some investors living in CA choose turnkey companies to invest out of state due to their dollar buying more house in places like Memphis, Kansas City, Indianapolis, Dallas, Houston, Jacksonville in FL, Cleveland, etc. - and in the comfort of knowing a good turnkey provider has taken care of all deferred maintenance for several years out and is providing solid property management, allowing you to focus on your job to earn more to invest more. Granted, you buy them at or slightly below market value, but you don't have to coordinate contractors long distance for rehabs, plus realtors, real estate attorneys, etc. Less stress at purchase and after. Basically outsourcing so you can focus on what you do best - your job for maximum income to invest.

  • Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
    10y

    Great thread, sounds like you're getting a lot of input. There's none for Jacksonville, FL so here's what I have:

    It has the Mayo Clinic, which I'm no expert on nursing, but people from the industry talk about it like it's some sort of shrine. I don't know about the salaries, but I have a feeling you've heard of it and that's why Jacksonville is a choice. The Clinic is right on San Pablo and JTB, which is a great location for single family homes. There is flipping potential there, but you'll have to work harder to find houses that need help. The clinic is a 5 minute drive from the beaches (San Pablo Beach, Jacksonville Beach, Neptune Beach, then Atlantic Beach), which is where I live and love it. There is endless rental possibility at the beaches. And nobody expects nice places by the beach so if you can't afford renovations at the beginning, you'll have no problem getting renters. Then once you make enough to renovate, there will be huge resale value. There's a good amount of duplexes at the beach where you can live in one side and rent out the other.

    There's also huge rental potential anywhere near UNF. Anything off Kernan will have no problem renting. I don't know much about other parts of Jacksonville - besides that San Marco and Riverside are rapidly growing. Also, there's always some sort of festival or food truck event going on so never boring!

    As for land, the best I know of is Alachua County, an hour away from Jacksonville. This is a great place to buy land. My friend has 30+ acres there with a few horses and fun gardens. An option could be to move to Jacksonville, and as soon as possible to work at Mayo Clinic, buy land in Alachua, then once you're ready to rely solely on REI money, move to your plot in Alachua. Just an idea!

  • Los Angeles, CA · Member since 2014 · 2k+ posts · 515 votes
    10y

    @Account Closed

    Great detailed post, Matthew.

    Scottsdale, AZ (8 months a year) where you own a home and build a rental portfolio. There is no other place in the county that is an entrepreneurial playground like AZ.

    Manhattan Beach, CA (other 4 months).

    Hope this helps and good luck. 

    P.S. Don't have kids until you are financially independent.

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

    Thanks @Charles Moore I'm going to look into that as a possibility. Great info!

    Wow @Thea Linkfield we're definitely on the same wavelength! So helpful! What is economy like down there? I guess my main concerns living down there would be hurricanes and rising sea levels. Also sandy, swampy soils, ew. Where is all that great florida citrus grown by the way?

    Thanks everyone! 

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

    @Jack Butala I'll probably be too old if I wait until then, ha. Good advice though. Anywho... Arizona was not on my short list. I'll take a look. Thanks!

  • Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    10y
    There hasn't been a hurricane in Jacksonville in like forever. No silly Dallas/Houston heat or humidity. I'm buying deals here in my sleep. Zero vacancy. And I have a lot of rentals. But then I don't want any competitors...so...don't come to Jacksonville!😜
  • Middleton, WI · Member since 2016 · 22 posts · 6 votes
    10y

    @Charles A. Ha, that was an awesome post! Great points too, thanks!

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    10y

    ""texas mentality/bigotry"

    Uh, what?   I have a diverse group of employees in Houston (gay, women, minorities, and some combs of all-of-the-above) as well as a diverse group of tenants.  I haven't see any bigotry, and I don't know what "mentality" you're talking about.

    Drives me crazy that people think this is a 'thing'.  With the rare exception of a random nutcase, you don't find much bigotry really anywhere.

  • Investor · Atlanta, GA · Member since 2014 · 378 posts · 82 votes
    10y

    @Account Closed - great scenario. I sent you a message with a few thoughts!

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