How far away for first rental property

Realtor · Monroe, WI · Member since 2018 · 10 posts · 6 votes

I am currently looking to purchase my first of hopefully many rental properties. The market in the town I live in is not good for buy and hold at this time so I am looking at surrounding areas.

I am finding property that would meet the 1.5-2.0 rule 45-60 minutes away. I am also only 2-2.5 hours away from Milwaukee and it looks more appealing to me for cost of entry vs cashflow. I am just unsure about managing the property from that kind of distance. Realistically how far away is to far for first time landlords?

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Alexander FelicePro Member

Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes

I just moved away from all my units, about ~3,000 miles. What I've found is being close creates an unnecessary crutch in your business.

If you want to grow, you need to be able to run your business without being there. Starting long distance makes this easy, if you start with units that are close you create a dynamic of comfort to being close, which is not ideal.

being close to a house doesn't give you any real benefit unless you intend to personally go there and shake down a tenant. otherwise long distance will offer better options and teach you valuable lessons that are widely unspoken and undervalued on BP.

The important part of real estate is people, not geography. Create a GREAT team and you can succeed anywhere, lousy team and you will fail everywhere.

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Ryan Groene
Specialist · Cleveland, OH · Member since 2016 · 186 posts · 173 votes
8y
@Matthew Wright i believe @Mindy Jensen and @Brandon Turner MHP is in Bangor, Maine.
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Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
My first rental was my first primary residence in Cincinnati, Ohio and when we moved to Philadelphia, it became a rental for 4 years before selling it this past September. So, roughly 600 miles. We had a great PM, which made all of the difference
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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
@Garrett Davis 2 to 2.5 hours away is nothing. All of our investors are either out of state or even out of country. If you're so hands on that you're concerned about being 2 hours away then you are a landlord, not an investor. I'm a big proponent of investing in the market that best achieves your overall investment goals and objectives regardless of where it is. I always say that you don't invest in a stock because the companies headquarters are in your backyard and you can drive by the building and look at it. Real estate should be treated as any other asset class. Buy were you can maximize your financial returns.
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John Harvell
Investor · Houlton, ME · Member since 2017 · 40 posts · 40 votes
8y
Alexander Felice .... Good words, in fact great words!
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
8y
@Matthew Wright, it's just south of Bangor.
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