If you're planning to move in the near future - should you not start investing?

4 Replies

I currently reside in NJ and am looking to start REI. I have a rough timeline where my girlfriend and I plan on moving out to San Francisco (for personal reasons) and searching for jobs out there within 6-8 months.

Does it make sense to purchase a property here for buy-and-hold? By the time I found something, closed on it, did repairs, and got renters in there, I would only have a couple months of self-managing before I have to leave in the hands of property managers.  I've heard for beginners it's important to self-manage since you need to keep expenses low and it's a valuable educational opportunity.

It depends if your okay with long distant properties. I know I personally wouldn't want to do it, but at the same time, I would want rental property more than a couple hours away. Being as your moving to San Francisco which is a very expensive place to live, you could consider saving up as much as you can before you get out there and try purchasing a multi-unit property to house hack it. (Look up house hack on BP if your not sure what that is.)

Thanks @Colin Smith , that's sort of my thinking for now.  If we did up getting jobs in SF, we would almost certainly live out over in the East Bay, either Berkeley/Oakland/etc.  I've looked a lot at properties out there and there's virtually nothing that we would be able to afford.  Even areas further east (Walnut Creek, San Ramon, etc), median home prices are $800K.

I'm most likely going to have to either suck it up and use a property manager, or just wait until I'm out in the Bay Area and try investing in markets like Sacramento.

@Parag Shah

many bay area people are buying in Sacramento because of the lower price points. I don't know how a new person can buy a rental house in the bay area because of the sharp run up of prices there the last three years. If you ever have questions about the Sacramento market , you can ask me.

I say go for it and get a property in NJ area - a place you already know. You don't know what future holds and you will be an investing in area you understand.

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