Relocating. Where Do I Invest?

Question

This is a topic that I really haven't seen discussed much before, and that is why I am starting this thread.

I received a phone call and a job offer for a position in Omaha, Nebraska. I am probably one of the few people who has no intention of quitting my job, and love what I do for a living. I currently own two 4 plexes, one in Phoenix, AZ and the other in Tucson, AZ. I am closing on my third 4 plex in under 2 weeks.

I will go from being able to see my properties on a daily basis, to maybe flying out to see them a couple times a year. Fortunately I already have property management set up, so that won't be my issue.

My question is, where do I invest? Should I continue investing in Arizona, the market where I currently own all of my rentals? Should I start looking for deals in Omaha, the place where I am moving? The third option is to look for deals in Kansas City, it is my hometown and only a 2.5 hour drive from Omaha. I know this market the best of all three.

Also I have read that you can have more than one FHA loan if you are relocating, so I am strongly considering going that route.

Account Closed · Answer

The best strategy that i was told was, invest in 3 to 5 markets no more. find your first and build a good amount of rentals, then rinse and repeat. By the time you build your 4th or 5th market, you will be ready to upgrade (to hotels) in the first market that you started in. your first market should be your backyard. Because that is where you will learn and be able to make more mistakes but won't cost you as much. Happy investing!

Account Closed · Answer

Omaha, gretna, la Vista.  All good places to find sfr. I haven't seen any four or triplex for sale tho. :-/

Mike D'Arrigo · Answer

@Anthony Gayden Personally I wouldn't even consider where you may or may not end up living. I'm a believer in investing in the markets that best meet your investment objective. Whether you'll be living in AZ or not, I don't think it's the best market today.  I think like several markets, Phoenix has been played out for a couple of years now. Prices have been pushed up too much to get a good return. Omaha on the other hand is still a strong cash flow market. Whether you transfer back to Kansas City or not, I would consider KC very seriously. Kansas City is another great cash flow market.

Lance A White · Answer

We've done some great flips in Bellevue and are currently rehabbing a SFR in Plattsmouth. Let me know if I can help you find something.

Brady Hanna · Answer

@Anthony Gayden-I agree with the others, if I were you I would definitely invest in Omaha where you will be living instead of several hours away in Kansas City.  Having bought several investment properties in my own back yard, I know how much time that takes and effort is involved, I can't imagine trying to do that 2.5 hrs away or more.

Then when you eventually move to a different city you will be diversified!

Fred Conway · Answer

i look at it a few different ways, i dont think its a bad idea to diversify. This will limit your risk and as you said, your other propertys have PM, so not a major headache for you. People that have all their eggs in 1 basket get crushed. If 1 market goes bad or has major appreciation, it could be a good thing or a bad thing. Realistically, its all about the investment and whether or not you think you can make money there. If it doesn't work out in Omaha for whatever reason,  yoy could always sell and buy more in AZ.

Lance A White · Answer

I would ask, how long do you think you will be in Omaha? It's a great market right now. I would seriously consider it. There is a Great REIA group in Omaha, so you can find lots of contacts and support quickly.

Kalo (Kyle) Atanasoff · Answer

If you relocate, you definitely need to look for as least 1 property (4plex perhaps) where you can live while working. I am sure you do not want to pay somebody else mortgage by renting,..,.

David O. · Answer

Anthony,

I am partial to KC but I agree with @Owen D. get to know your new backyard. If the assets in that market meet your investment goals focus there for a while.

Owen Dashner · Answer

The Omaha area is a great rental property market.  Low vacancies, strong economy, good job growth.  Why not invest in your own (new) backyard?  The demographics are similar to KC, so why drive 3 hours when you don't have to?

Relocating. Where Do I Invest?

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