Uncertain about my location, should I still buy?

Question

Hey guys and gals, I'm new here and a baby when it comes to this real estate thing. I am living in Montgomery, Alabama (very cheap real estate) and am finally in a financial position where I can pursue buying a home if I so desire. My ideal first purchase would be a multi-family home so that I can house hack. But I am not so sure I will be living in Montgomery 5 years from now. I've thought about buying and then just getting a property manager if I leave within the 5 year time frame. I know there are probably some other factors and variables at play here, but if you were in my shoes, what would you do? If you're unsure that you'll be in an area for much longer, should I just not even worry about buying until I'm more certain of my permanent location?

Thanks for your input!

Jonathan

Thanks for your input!

Jonathan

Christopher H. · Answer

@Jonathan Straiton

1) Find out what prop managers charge in your area

2) Define your investment criteria

3) Run the numbers as a full rental with the prop manager included.

4) Find a property where the numbers in #3 fit your criteria from #2

5) Now you can begin the buying process

That is one really simple way to hedge against your concern.

Good luck with your purchase

Antonio Cucciniello · Answer

@Jonathan Straiton

I think you should start now regardless of whether or not you are here in 5 years.  The gains you will make in knowledge, mindset, experience and finances will be too great to pass up the opportunity to wait another 5 years.

Greg Parker · Answer

I agree with Paul.  99% of the homes I manage are for out of state investors.

Let me know if I can help.

Joseph Back · Answer

@Jonathan Straiton I would definitely go ahead and get started. Montgomery is one of the best markets in the nation for cash flow. I am a wholesaler and investor in Montgomery myself and we sell a lot of properties to out of state investors who have local property management handle everything for their properties.

Paul De Luca · Answer

I wouldn't defer getting started investing in real estate just because you may not be in the area 5 years from now. Because if your only other alternative is continuing to rent for the next 5 years, I think that is a huge amount of time wasted and potential. If you do end up moving, I would get a property manager as you said.

Jonathan Straiton · Answer

One of my biggest reservations was the traditional 5 year rule you hear people talk about. You guys are helping me to feel more encouraged about taking the leap anyway, thanks for the great info. Guess I need to get started!

Uncertain about my location, should I still buy?

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