I came across bigger pockets while podnering some long term strategy stuff, and I would love some insight on my situation.
My wife and I are looking for investment opportunities. We met and lived in Brooklyn, NY, but moved to Connecticut about a year ago when we purchased our first home here which dramatically lowered our monthly expenses.
We are both freelancers in the advertising world, so our work revolves around NYC, and we would love to be back in the city long term. We've been exploring multi-family homes and have found some in Brooklyn where numbers in terms of cash flow, buying slightly below market, etc. seem decent. We can swing a purchase in Brooklyn, but it would be a huge portion of our net worth going into the down payment.
I'm a bit of the mindset that it's best to start smaller, approach the learning curve on smaller investments, and exploring Connecticut or possibly upstate New York (or anywhere else someone on BP might recommend!) where the ROI on cash flow seems to be better. However, I'm mostly of the long term buy-and-hold mentality, so could see this turning into a scenario where I own single families or small multi-families spread out geographically. After reading up on the forums here on BP, I see that it's not that uncommon for investors to go outside their own backyard depending on where the deals are good but I would LOVE any input on my particular situation.
I have been interested in this topic as well. Being in the military I have seen several people purchase homes either long distance or purchase homes in the local area then move away. From those that I have talked to the key is to get a good deal and then find a trustworthy management company that keeps open communication with you as the owner.
I have not asked about how this would complicate taxes and whether or not an LLC would make things easier or more complicated come tax time. Ive been told that If you own rental properties that are geographically separated that it may be worth the money to hire a professional come tax time.
This post has been removed.
Thank you @Raymond B. ! Great to have this on the radar and we will be there!
My husband is active duty navy so we buy all over and self manage them when we leave. We have even bough pure rentals in areas that we haven't lived. We self manage the rentals ourselves while both working full time. I have had some great stress moments that have made great writin material for our blog but so far no financial issues. We have gotten very good at our systems! We also have a "very" specific business plan. We don't follow the 1%, 2% or 50% rule but we do have very specific criteria.
Live where you want, invest where you need. I am on the extreme edge of this. I live 3 hours from my farm. I have a number of colleague who also live hours from their farm and keep a small rental to stay a few nights a week to handle business.
Welcome @Jacob Pritchard I live in NYC and invest in your backyard. Feel free to reach out if I can help.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing