Columbus, OH vs AZ/NV

[Hanna Kennedy]

Hello!

My husband and I currently rent in a HCOL area (southern California). Due to our careers, we'll need to stay put for the next 2-3 years or so, however we have the funds saved up ~80,0000 to get started on our first rental property in a lower cost of living area. I am considering Columbus, OH as my husband grew up there and most of his friends/family still live in the area. They have connections to reliable realtors, plumbers, electricians ect. plus the inside scoop on the local neighborhoods. We are in Columbus at least twice a year to visit anyways and his family has offered to keep an extra eye on the property if we buy there. It does make me nervous that the property would be so far away (especially with it being our first rental) and I think the severe winter weather may provided additional challenges to home upkeep. 

For those reasons, I've also been considering Tucson/Phoenix AZ or Las Vegas. It's a 4-5 hour drive from where we live, and the low maintenance landscaping styles of those areas + the lack of extreme winter weather are an added bonus.   

Of course we will be getting a property management company regardless of if we acquire the property in OH/NV/AZ. We are looking for a 3b, 2b house that does not require extensive repairs. 

Do you feel it's important to be physically close to your first rental? What are some challenges of obtaining your first rental out of state? Any advice you can provide would be greatly appreciated. Thank you so much!  

[Jonathan Styer]

Hello Hannah, 

I think the most important thing for you is to find a great property management team that you feel comfortable and confident with and about. Whether your 4 hours or 24 hours away, it's going to be the management team that is really taking care of the property. I can speak to Columbus investment and know that there is good cashflow and appreciation here. Yes, there is winter weather to be taken into account but if you've got a good management team and own good investments, that should not be an issue. 

Good luck in your investment journey!