Rental Property Investor · Perham, MN · Member since 2018 · 9 posts · 1 vote
I'm looking into some deals that are both local (within just over an hour from me) and out of state. Below are the details of each. Which would you rather do? This would be my first deal. Biggest difference I see is whether or not to go out of state or stay local and manage myself. The local property would be next to a university and be targeted towards college students of which I would know one that would live there for the first 1-2 years.
Local - Self Manage
•$170k purchase price
•20% down - $34k
•$1,750 rent
•5 bd 3 ba
•Cash Flow - $425/mo
•College Student Renters
•Dependent on start of school year
•$1,200 cash flow after payoff
Out of State - Use PM
•$85k purchase price - Buy two properties within 6 months
.1% return is not worth the headache of self management unless your dream is to be a property manager. Out of state with a property manager has been far easier for us than self managing a local property ever was.