moving out of state to invest

Member since 2022 · 62 posts · 39 votes

Has anyone here moved out of state to start brrrr or house hack? If so, can you share your experience? I will be thankful. I live in san diego ca and plan to move to chicago to buy a triplex and make brrrr in the future.

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Jonathan KlemmBusiness Member

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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes

Hey @Kristin Vegas! Super happy to hear we will be welcoming you to Chicago! You will find a ton of great folks here in BP willing to help and plenty of others once you arrive.

Are there any specific areas of Chicago you are looking at? BRRRR is a great option here and tons of price points.

I like @Jonathan Greene Q - Do you want to move to Chicago are you feeling like you have to? Because I agree real estate is possible in any location, different areas just take different strategies and sacrifices!

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
Do you have to move to Chicago, or are you choosing to move to Chicago? It's doable as a market to do what you want, but you must understand the block dynamics if you are going for Chicago proper. Turning a corner could have a different investment trajectory.
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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
2y
@Kristin Vegas welcome to Chicago! Plenty of folks move here from out of state to do house hacks, and there are so many amazing neighborhoods you can choose from. I would focus on connecting with a good team you trust. Maybe go to some meetups if you can before you move so you meet folks here on the ground. We have a wonderful community of investors here in Chicago for sure.
In terms of doing a house hack, you likely will want to do a 5% down loan or something similar. The BRRRR is great, but typically does not go hand in hand with house hacking.
0 Reply
Zeke Liston
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
2y
Quote from @Kristin Vegas:

Has anyone here moved out of state to start brrrr or house hack? If so, can you share your experience? I will be thankful. I live in san diego ca and plan to move to chicago to buy a triplex and make brrrr in the future.

Hey Kristin, I don't have experience doing this myself, but I've helped many buyers do it. Do you know the Chicago area well? If I were you, I'd plan a visit and narrow down the neighborhoods you're interested in and get with an agent who knows the city very well to guide you on the purchase. Good luck!
0 Reply
Joey BanasihanPro Member
Investor · Boise, ID · Member since 2019 · 233 posts · 188 votes
2y
Hey @Kristin Vegas, I did back in 2020, moved to Boise. Was able to build an ADU in the basement, rent it out, and gained around $150k equity in the process. Cash flow is around $1k due to my low interest rate and MTR strategy. Now I work with the agent team who helped me and help others house hack/invest in this area. Obviously circumstances has changed, cash flow is difficult, but Boise is a more of an equity play right now. Still finding cash flowing properties, but it takes more work and willingess from buyers to make some comprimises. Just remember, wherever you go, it still comes down to making sacrifices, remembering this is a 10 year process not a quick fix, and being solid with your everyday budget and goals and living below your means; boring but effective. Good luck!
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1 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
I did.
In 2017 my wife and first born kiddo moved from the SF Bay Area to Detroit Metro. My wife grew up in Oak Park (near Thousand Oaks).
We spent our first year getting our bearings. Then we aggressively built a 12-door rental portfolio over the course of 2.5 years. We spent the next ~1 year paying down our HELOC, sold our home (for a huge profit), and moved back to CA.
It's great if you can do it. But realize you will likely want to move back. The weather is a massive factor for those of us that are used to sun and warm weather basically year around.
We both agree it was the best thing we could have done. Ideal? No. But it set us up for financial freedom and we couldn't be happier with how things turned out.
1 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
2y
@Kristin Vegas
Relocating out of state to begin real estate investment might be a big choice, but it can also lead to new markets and possibilities. Market research, local expertise, networking, property management, financial planning, potential legal and tax ramifications, risk management, and long-term vision are important factors to take into account. Look at areas with high rental demand, possibilities for capital growth, and properties that fit investment objectives. Collaborate with nearby property managers, real estate brokers, and other experts to obtain important information and handle regional laws. Make connections with neighborhood residents, real estate agents, and investors in your area to get knowledge from their experiences.

Effective property management in the Chicago market requires working with a trustworthy property management firm. A strong financial strategy is necessary, and it should include a budget for moving costs, property acquisition costs, renovations, and any vacancies. It is important to think about the potential legal and tax ramifications and to have backup strategies. It is important to have a long-term perspective that takes diversity, scalability, and portfolio development into account. In your new area, you may develop a profitable real estate portfolio with tenacity, endurance, and a calculated strategy.

Good luck!
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Jake AndronicoBusiness Member
Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
2y
@Kristin Vegas
Yep! I moved out of CA (grew up in NorCal and went to school in SoCal) to Reno, NV to house hack. I've done it twice now and it's changed my life.
Still wanted to be close to CA and Lake Tahoe but have much more favorable tenant/landlord laws, property taxes DO NOT reassess on the sale, stable diversified job growth, population growth, land constraints force appreciation, and a ton of outdoor activities that I enjoy.
Every situation is going to be different, but I respect you that you're willing to move out of state to pursue your dreams! Not a lot of people think this way, but if you're trying to eventually live like 99% of people can't, it should be hard.
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Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @John Warren:

@Kristin Vegas welcome to Chicago! Plenty of folks move here from out of state to do house hacks, and there are so many amazing neighborhoods you can choose from. I would focus on connecting with a good team you trust. Maybe go to some meetups if you can before you move so you meet folks here on the ground. We have a wonderful community of investors here in Chicago for sure.
In terms of doing a house hack, you likely will want to do a 5% down loan or something similar. The BRRRR is great, but typically does not go hand in hand with house hacking.

hi thanks for responding. yes planning to use a fha loan for the property I'm planning to buy
0 Reply
Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Zeke Liston:

Quote from @Kristin Vegas:

Has anyone here moved out of state to start brrrr or house hack? If so, can you share your experience? I will be thankful. I live in san diego ca and plan to move to chicago to buy a triplex and make brrrr in the future.

Hey Kristin, I don't have experience doing this myself, but I've helped many buyers do it. Do you know the Chicago area well? If I were you, I'd plan a visit and narrow down the neighborhoods you're interested in and get with an agent who knows the city very well to guide you on the purchase. Good luck!

hi Zeke! yes I been to the area twice, actually own 2 properties there but never lived there before, thanks for your response!
1 Reply
Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Joey Banasihan:

Hey @Kristin Vegas, I did back in 2020, moved to Boise. Was able to build an ADU in the basement, rent it out, and gained around $150k equity in the process. Cash flow is around $1k due to my low interest rate and MTR strategy. Now I work with the agent team who helped me and help others house hack/invest in this area. Obviously circumstances has changed, cash flow is difficult, but Boise is a more of an equity play right now. Still finding cash flowing properties, but it takes more work and willingess from buyers to make some comprimises. Just remember, wherever you go, it still comes down to making sacrifices, remembering this is a 10 year process not a quick fix, and being solid with your everyday budget and goals and living below your means; boring but effective. Good luck!

hi Joey thanks for sharing your experience and congragulation for everything you have achived. I live in a very expensive market wich make it impossible buying here so I decided moving out of state to start my house hack

0 Reply
Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Travis Biziorek:

I did.
In 2017 my wife and first born kiddo moved from the SF Bay Area to Detroit Metro. My wife grew up in Oak Park (near Thousand Oaks).
We spent our first year getting our bearings. Then we aggressively built a 12-door rental portfolio over the course of 2.5 years. We spent the next ~1 year paying down our HELOC, sold our home (for a huge profit), and moved back to CA.
It's great if you can do it. But realize you will likely want to move back. The weather is a massive factor for those of us that are used to sun and warm weather basically year around.
We both agree it was the best thing we could have done. Ideal? No. But it set us up for financial freedom and we couldn't be happier with how things turned out.

thanks for sharing your experience! I know it's going to be a big change but i'll do what I have to do
1 Reply
Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Wale Lawal:

@Kristin Vegas
Relocating out of state to begin real estate investment might be a big choice, but it can also lead to new markets and possibilities. Market research, local expertise, networking, property management, financial planning, potential legal and tax ramifications, risk management, and long-term vision are important factors to take into account. Look at areas with high rental demand, possibilities for capital growth, and properties that fit investment objectives. Collaborate with nearby property managers, real estate brokers, and other experts to obtain important information and handle regional laws. Make connections with neighborhood residents, real estate agents, and investors in your area to get knowledge from their experiences.

Effective property management in the Chicago market requires working with a trustworthy property management firm. A strong financial strategy is necessary, and it should include a budget for moving costs, property acquisition costs, renovations, and any vacancies. It is important to think about the potential legal and tax ramifications and to have backup strategies. It is important to have a long-term perspective that takes diversity, scalability, and portfolio development into account. In your new area, you may develop a profitable real estate portfolio with tenacity, endurance, and a calculated strategy.

Good luck!

thanks for your response, I will take it into account
0 Reply
Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Jake Andronico:

@Kristin Vegas
Yep! I moved out of CA (grew up in NorCal and went to school in SoCal) to Reno, NV to house hack. I've done it twice now and it's changed my life.
Still wanted to be close to CA and Lake Tahoe but have much more favorable tenant/landlord laws, property taxes DO NOT reassess on the sale, stable diversified job growth, population growth, land constraints force appreciation, and a ton of outdoor activities that I enjoy.
Every situation is going to be different, but I respect you that you're willing to move out of state to pursue your dreams! Not a lot of people think this way, but if you're trying to eventually live like 99% of people can't, it should be hard.

hi Jake thanks for sharing. when you said it changed your life, what do you mean, it has changed your life for good or bad
1 Reply
Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
2y
Hey @Kristin Vegas! Super happy to hear we will be welcoming you to Chicago! You will find a ton of great folks here in BP willing to help and plenty of others once you arrive.

Are there any specific areas of Chicago you are looking at? BRRRR is a great option here and tons of price points.

I like @Jonathan Greene Q - Do you want to move to Chicago are you feeling like you have to? Because I agree real estate is possible in any location, different areas just take different strategies and sacrifices!

[email protected]
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Samuel DioufBusiness Member
Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
I moved from Florida to start investing in Columbus, Ohio. I saw the amount of opportunity here with the amount of growth coming to this city and decided to go all in.
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Jake AndronicoBusiness Member
Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
2y
Quote from @Kristin Vegas:

Quote from @Jake Andronico:

@Kristin Vegas
Yep! I moved out of CA (grew up in NorCal and went to school in SoCal) to Reno, NV to house hack. I've done it twice now and it's changed my life.
Still wanted to be close to CA and Lake Tahoe but have much more favorable tenant/landlord laws, property taxes DO NOT reassess on the sale, stable diversified job growth, population growth, land constraints force appreciation, and a ton of outdoor activities that I enjoy.
Every situation is going to be different, but I respect you that you're willing to move out of state to pursue your dreams! Not a lot of people think this way, but if you're trying to eventually live like 99% of people can't, it should be hard.

hi Jake thanks for sharing. when you said it changed your life, what do you mean, it has changed your life for good or bad
Great question. Definitely the good :)
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
2y
Are you moving in order to invest or simply moving and want to Chicago and want to start off by buying a property?
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Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Andrew Syrios:

Are you moving in order to invest or simply moving and want to Chicago and want to start off by buying a property?

hi! yes i'm moving because I'm going to invest there
1 Reply
Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Samuel Diouf:

I moved from Florida to start investing in Columbus, Ohio. I saw the amount of opportunity here with the amount of growth coming to this city and decided to go all in.
hi Samuel thanks for sharing. I wish you the best
0 Reply
Kristin Vegas
OP
Member since 2022 · 62 posts · 39 votes
2y
Quote from @Jonathan Klemm:

Hey @Kristin Vegas! Super happy to hear we will be welcoming you to Chicago! You will find a ton of great folks here in BP willing to help and plenty of others once you arrive.

Are there any specific areas of Chicago you are looking at? BRRRR is a great option here and tons of price points.

I like @Jonathan Greene Q - Do you want to move to Chicago are you feeling like you have to? Because I agree real estate is possible in any location, different areas just take different strategies and sacrifices!

thanks Jonathan for your response. I don't have a specific area yet. that's what I'm working on now. I have 4 areas in mind but I'm doing my research on those areas and haven't decided which one. at this point I feel like I have to move there
1 Reply
Sarita ScherpereelBusiness Member
Real Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
2y
Hi @Kristin Vegas, exciting that you are thinking about a move here to Chicago! I haven't regretted my move from Houston. We have a vibrant investor community, I host a monthly meetup, and there are several others in the area that would be a good place to meet other house hackers. Since you'll be coming from out of state, understanding the different neighborhoods and how the inventory in each works with your strategy will be important. As @John Warren said, house hacking and BRRRR are not always the same strategy. You mentioned using an FHA loan, but that poses some real challenges in the city for a three-unit building because it's very difficult to find properties that can pass the FHA self-sufficiency test. Even after finding a qualifying building, if you can use the new 5% down program you may find less resistance to your offers since sellers often don't want to deal with the additional inspection. I house hack in Chicago and have been rehabbing my building over the past year, and my team works with house hackers frequently, so if I can help answer any questions you may have, please DM me!
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
2y
Quote from @Kristin Vegas:

Quote from @Wale Lawal:

@Kristin Vegas
Relocating out of state to begin real estate investment might be a big choice, but it can also lead to new markets and possibilities. Market research, local expertise, networking, property management, financial planning, potential legal and tax ramifications, risk management, and long-term vision are important factors to take into account. Look at areas with high rental demand, possibilities for capital growth, and properties that fit investment objectives. Collaborate with nearby property managers, real estate brokers, and other experts to obtain important information and handle regional laws. Make connections with neighborhood residents, real estate agents, and investors in your area to get knowledge from their experiences.

Effective property management in the Chicago market requires working with a trustworthy property management firm. A strong financial strategy is necessary, and it should include a budget for moving costs, property acquisition costs, renovations, and any vacancies. It is important to think about the potential legal and tax ramifications and to have backup strategies. It is important to have a long-term perspective that takes diversity, scalability, and portfolio development into account. In your new area, you may develop a profitable real estate portfolio with tenacity, endurance, and a calculated strategy.

Good luck!

thanks for your response, I will take it into account

Most welcome!
Keep learning and growing.
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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
2y
Quote from @Kristin Vegas:

Has anyone here moved out of state to start brrrr or house hack? If so, can you share your experience? I will be thankful. I live in san diego ca and plan to move to chicago to buy a triplex and make brrrr in the future.

We invested out of state to BRRRR a few times. Before investing we always made sure we had lots of boots on the ground support, so it felt like we were local. Given that you're planning on moving to the location for your BRRRR and house hack you can do the same thing. Make sure you put money in your budget for a few trips before pulling the trigger.
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
2y
Quote from @Kristin Vegas:

Quote from @Andrew Syrios:

Are you moving in order to invest or simply moving and want to Chicago and want to start off by buying a property?

hi! yes i'm moving because I'm going to invest there

Then yeah, house hacking would be a great option. Just make sure to research the neighborhood carefully beforehand. Chicago does have some really rough areas
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Joseph Konney
Real Estate Agent · Forest Park, IL · Member since 2014 · 255 posts · 141 votes
2y
@Kristin Vegas - If you are buying in Chicago proper, be sure to become familiar with the landlord tenant ordinance which is specific to the city. https://www.chicago.gov/city/en/depts/doh/provdrs/landlords/...
There is a good stock of multifamily housing just west of the city if you are looking for a more suburban feel with better schools and policing while still being able to get to the Chicago city center within 15-20 minutes.
If you are considering house prospecting sight unseen, I suggest to use an investor centric broker who has experience with detailed virtual tours and rehabs. For reference, my tours of a single family home usually encompass 200-300 photos.
Chicago and it's suburbs are notorious for multifamily zoning and illegal units issues. Particularly with an FHA loan, you might find a home where the parcel is zoned for 2 units, but has 3 units which is legal-nonconforming... but then your loan officer will only count two of those units of rent to qualify for the loan because one is nonconforming. In Chicago, many times on the MLS there is a garden or attic apartment listed as a 3rd unit on the listing, but when the zoning certificate comes back from the city, it will only specify two units. That would put you at a huge risk if it were ever to be inspected by the city as they would likely force you to de-convert that unit.
Most suburbs here have city inspections required prior to the sale taking place, Chicago proper does not.
I have some strategies to BRRR quicker than 6 months if you are looking to move quickly. Feel free to reach out.
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