Should I buy rental property if not stable?

Question

Here is the deal. I am unstable. I live in a state a few years and move.. Sometimes up to ten years, other times 2 years.

The nice thing is my job is flexible and i can live anywhere and transfer anywhere. The problem is I don't know where to live. Right now I am in Ohio cause its affordable and close to my home state of Illinois. I have family in Arizona and Florida. I lived in both of those states but left because of the heat and lack of jobs there.

Anyway, I am tired of renting and throwing away money. I am thinking of buying a duplex and renting out one side and living in the other side. if I get the itch to move out of state I could just rent out both sides and get a property management company to manage the duplex and still have cash flow.

Is that a great idea?

Or should I just rent the rest of my life and throw money away? Honestly, I have no idea which state I will end up these days. Never want to settle down.

Robert Gilstrap · Answer

@Mike Dymski I hear you! Finding a good PM is difficult for sure. I only see one Master Property Manager in SC and he's unfortunately in Charleston. I do see one RMP candidate in Greenville.  His info if you want it is: 4M Property Solutions   Daniel Madison

There are only 170 Master Property Managers in the US so they're hard to come by for sure.

Mike Dymski · Answer

@Robert Gilstrap i often hear NARPM and IREM certified PMs on BP recommend that owners find and use credentialed managers.  Not all markets have them.  My MSA has a population in excess of one million and there are no NARPM credentialed individuals within 50 miles.  Please hop on I-85 north and open a location up here.

I just switched to my second 3rd party manager in a year (after extensive due diligence) and they botched rent collection in the very first month...have 15-20% uncollected (or lost) rent for January.  Finding quality 3rd party management in many markets can be challenging.

Thomas S. · Answer

There is nothing wrong with renting, it is more affordable than owning and allows you more flexibility to move around if that is your desire. Home ownership is greatly over rated and is only a life style decision. Not your life style in my opinion.

No problem with investing in rentals but they can be a major headache when things go bad and you are not available to deal with tenants or you PM company. Rental properties are not a arm chair investment.

James Wise · Answer

Yes nothing wrong with that. We call it House Hacking. It's a great way to build an income producing portfolio with little money out of your pocket.

Mike Dymski · Answer

@Robert Gilstrap yes thanks, I am familiar with 4M and his RMPC...unfortunately they do not have any presence in Anderson county.

Alex Shaughnessy · Answer

I would house hack those places where you know people or know the areas well enough (assuming you find great deals). maybe rent when you get to a new place and while there try to find a good investment property.

Todd Hensy · Answer

All great posts! A lot of things to think about and rationalize.

I may test the RE market in Columbus and see what kind of duplexes are out there. If I don't find a killer deal then I am ok with renting too because I can always funnel my extra pay into index funds.

A poster pointed out that real estate is not an arm chair investment. I agree it must take a lot of work to manage your investments ---- sometimes renting does have its advantages when I don't have to fix a roof or toilets.

in the meantime I am going to strategize and make a logical decision on what needs to be done for the long-term future. Thanks fellas!

Alex Craig · Answer

@Jack Hensy I love how you start out your post, "I'm unstable."  I would think about 50% of my tenants fall into that category in a completely different way, LOL.  I think that is a great idea, but I would not sweat not owning, heck, sometimes I wish I rented so that I could call my landlord to fix items and use the extra Fannie Mae spot for another home. If I were you, I would start maxing out your Fannie Mae conventional lending spots.  Ohio is a good spot to buy rentals, specifically the Indy area and Columbus area.

Robert Gilstrap · Answer

If you have the right investment and it's properly managed then it shouldn't matter where it's located in relation to where you physically live.  The key is good property management. When thats handled everything else falls into place. Only hire a professional who is NARPM credentialed and your chances of getting a bad PM drop to almost zero. Look for at least an RMP but better yet an MPM (master property manager).

Should I buy rental property if not stable?

Most Popular Reply