Moving from New England to a Southern Market

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Moving from New England to a Southern Market

Matthew Wright
Investor · Windham, ME · Member since 2016 · 180 posts · 37 votes

My wife and I are strongly considering moving away to a warmer, more tax friendly and most importantly, more opportunity driven market.  This is no small decision, considering we have two young children and I have established myself here in Maine. I'm 29 and I've lived in the same town since birth.  However we ask ourselves why stay? Taxes are unreasonable, heat expenses are thru the roof, the snow is a pain in the butt and I'm looking for more opportunity.  When I move I'm looking to start developing my team and furthering my rental property investing, right away. I'm currently a RE agent/wholesaler/landlord investor. 

I'm going to rely heavily on feedback from anybody on here that has feedback to give about market growth, opportunity, landlord friendly state, tax friendly etc.... We are thinking either the Carolinas or Texas. Thoughts anyone? Feedback greatly appreciated.

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Chris Eaker
Buy and Hold Investor · Knoxville, TN · Member since 2013 · 450 posts · 270 votes
9y

@Matthew Wright

What about Tennessee? No state income tax. I haven't found property taxes to be that high. Sales tax is higher than other states, but you can decide how much you pay based on your spending. Investment opportunities abound. If you settle in the eastern part, you get the beautiful Great Smoky Mountains. The weather is nice, we get all four seasons. It's a very landlord friendly state, and the state government itself is among the highest in terms of financial stability. Give us a look. Message me if you have further questions, or ask here but don't forget to tag me.

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  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Matthew Wright:

    My wife and I are strongly considering moving away to a warmer, more tax friendly and most importantly, more opportunity driven market.  This is no small decision, considering we have two young children and I have established myself here in Maine. I'm 29 and I've lived in the same town since birth.  However we ask ourselves why stay? Taxes are unreasonable, heat expenses are thru the roof, the snow is a pain in the butt and I'm looking for more opportunity.  When I move I'm looking to start developing my team and furthering my rental property investing, right away. I'm currently a RE agent/wholesaler/landlord investor. 

    I'm going to rely heavily on feedback from anybody on here that has feedback to give about market growth, opportunity, landlord friendly state, tax friendly etc.... We are thinking either the Carolinas or Texas. Thoughts anyone? Feedback greatly appreciated.

    Texas has higher property tax but no income tax so if you live here that's a wash. The Summers are hot but doable unless you are working outside all day. It's more of a laid back atmosphere unless you live in one of the big four cities. The plus side is you can find just about any topical terrain you can imagine here. Well ok the mountains aren't really mountains to most but they are to us. 

    Market growth had been good and we didn't fall as far as other states in 2008. Overall we didn't rise as much either.  

    0Reply
  • Chris Eaker
    Buy and Hold Investor · Knoxville, TN · Member since 2013 · 450 posts · 270 votes
    9y

    @Matthew Wright

    What about Tennessee? No state income tax. I haven't found property taxes to be that high. Sales tax is higher than other states, but you can decide how much you pay based on your spending. Investment opportunities abound. If you settle in the eastern part, you get the beautiful Great Smoky Mountains. The weather is nice, we get all four seasons. It's a very landlord friendly state, and the state government itself is among the highest in terms of financial stability. Give us a look. Message me if you have further questions, or ask here but don't forget to tag me.

    3Reply
  • Heather Bettis
    Sweetwater, TN · Member since 2017 · 36 posts · 11 votes
    9y

    @Matthew Wright

    I agree with @Chris Eaker. Tennessee has a lot to offer. I don't have much to add as he covered it pretty well. I live in the Sweetwater, TN area not far from Knoxville and being originally from Pennsyvania, I love the beauty of the Mountains and the weather here and there is plenty of opportunity. We are currently waiting on the closing of our first property which was a foreclosure and will become our primary residence and business location.

    1Reply
  • Matthew Wright
    OP
    Investor · Windham, ME · Member since 2016 · 180 posts · 37 votes
    9y

    Thanks guys, that helps. TN is totally an option also. Can anyone provide feedback for Atlanta market?

    0Reply
  • Maxwell Lee
    Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
    9y

    FL, TX and TN all have no income tax. With TN I feel like Nashville has gone bananas and would be akin to Miami or Austin. Certainly you can be successful investing there but you've missed the boat on the massive appreciation. Memphis is pretty tricky too and has high property taxes, so I'd probably turn to smaller areas like Knoxville and Chattanooga. 

    Dallas, Houston and San Antonio are all looking great on a macro level. Again, those markets are red hot but the growth is so strong that it's still very appealing. I feel the same way about Atlanta. Even though many people feel like the big pay day has long passed, the job and pop growth for Atlanta and constant flow of new business suggests that it is still a stable growth market. 

    In FL, Tampa, Orlando and Jax all have strong positive signs while still offering good cash-flow. 

    In the end I'd put more weight on the type of city I want to live in. Good luck!

    0Reply
  • Elizabeth Wilson
    Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
    9y

    @Matthew Wright - As a southerner, I think any of these states would be great/better options.  I'm biased on Tennessee but that is because of my roots and current home. :)  As far as taxes go, while there is no income tax, they get their pound of flesh (success) just like other states.  But maybe in not so obvious ways:  high property taxes (in certain cities), high F&E tax (for businesses), and high alcohol taxes to name a few.  I don't know enough about other southern states to say how these numbers compare.  I just know when we moved from Indiana (5% income tax) we are now paying 6% F&E tax on our business so the "no income tax" is for those W2 folks. (please any CPA or more knowledgeable person correct me if I'm wrong on this.  I know just enough about our taxes to get my blood boiling; after that I pay my accountant well. :)

    Positive:  very landlord/investor friendly, which I do not take for granted!!

    Not to talk you out of moving here.  I love it.  While Memphis is home, I've lived in both middle TN and in the smokeys.  I'd probably move towards the east just because of the beauty of the mountains and the access to more adventure sports. 

    Best of luck!  Please let us know what you decide to do!   :)

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    If you enjoy making lots of money I'd suggest the DC area. 10 of the richest 20 counties in America are in the area which means often that even mediocre jobs have good pay.

    Now we do have higher taxes, and high housing costs...but the taxes are easy to deal with when you make a lot, and the housing is actually pretty reasonable when measured against incomes and is thus more affordable than places like Boston, NYC, Seattle.

    [email protected]301-893-4635Podcast Guest on Show #192
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  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y
    Originally posted by @Matthew Wright:

    My wife and I are strongly considering moving away to a warmer, more tax friendly and most importantly, more opportunity driven market.  This is no small decision, considering we have two young children and I have established myself here in Maine. I'm 29 and I've lived in the same town since birth.  However we ask ourselves why stay? Taxes are unreasonable, heat expenses are thru the roof, the snow is a pain in the butt and I'm looking for more opportunity.  When I move I'm looking to start developing my team and furthering my rental property investing, right away. I'm currently a RE agent/wholesaler/landlord investor. 

    I'm going to rely heavily on feedback from anybody on here that has feedback to give about market growth, opportunity, landlord friendly state, tax friendly etc.... We are thinking either the Carolinas or Texas. Thoughts anyone? Feedback greatly appreciated.

    Don't move anywhere close to DC. Its more of same that you have up there. Maryland is a terribly blue state. More blue than the Pacific Ocean. DC is useless. Northern Va might as well join Montgomery county, MD.  You will be very much disappointed in and around DC area.   

    I personally haven't researched much of south but have been to Richmond, VA several times and was impressed. Property values are still very low compared to DC area, and its only 100 miles from DC.

    0Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    9y

    Hi! @Matthew Wright I would second @Russell Brazil. Metro DC is a great area. Lot of cultural diversity. A great environment to raise young kids and make them contributing members of the world community. And, oh yes, if you are good realtor, you will do very well. :-)

    [email protected]571-200-6180
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  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    9y

    @Chinmay J. Everyone has their opinions. Its ironic that you live in NoVA and are disparaging of the area. Maybe you should move yourself out of the area and go to where the thinking/mindset is more aligned with you.

    [email protected]571-200-6180
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  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y
    Originally posted by @Upen Patel:

    @Chinmay J. Everyone has their opinions. Its ironic that you live in NoVA and are disparaging of the area. Maybe you should move yourself out of the area and go to where the thinking/mindset is more aligned with you.

    Life is full of ironies. Get used to it.. 

    That being said, which of Matthew's concerns of moving out of Maine will be satisfied by him moving to DC area? No its not a trick question. Plus he will have to hear about a million plus people whining about Snyder all day long.

    0Reply
  • Robert Nason
    Lowell, MA · Member since 2014 · 260 posts · 99 votes
    9y
    I was born and raised in Maine. I left for the same reasons you are considering. The way I think, the Carolinas is the better choice. East Coast bias I guess.
    0Reply
  • Philip Bard
    Kennebunk, ME · Member since 2016 · 11 posts · 5 votes
    9y

    Matthew,  

    I've recently returned to Maine after 15 years in North Carolina.  We were in the Charlotte region.  I recommend Charlotte Metro to no one.  If you enjoy the food and beer scene in Portland than I think you'll find Asheville is nice and you'd get some seasons and beautiful scenery.  I also enjoyed the Wilmington region if you are interested in the coast.  You'll find that the price of entry is much lower than it is in Southern Maine.   

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    9y
    Matthew Wright My recommendation is not to rely on feedback but go visit places and see what you like. Getting someone's opinion on where to live from someone you do not know is the same as getting someone's opinion on picking your significant other. Every part of this country has pros and cons and only you can decide what is the best fit for you.
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  • Teddy Smith
    Real Estate Broker · Wilmington, NC · Member since 2016 · 236 posts · 126 votes
    9y

    Come on down to Wilmington, OP. Plenty of sea turtles and alligators for everybody!

    I'm jk.... But we do have low property taxes and a population that has nearly doubled since 2000.

    1Reply
  • Ben McMahonPro Member
    Investor · San Diego CA · Member since 2014 · 341 posts · 139 votes
    9y
    Matthew Wright You could just join the military and move somewhere every two years. It's easier to hide your trail of dead bodies. Just ask Kim Meredith Hampton about that. I believe there was a some nice ones left in Florida in some of their rentals.
    0Reply
  • Matthew Wright
    OP
    Investor · Windham, ME · Member since 2016 · 180 posts · 37 votes
    9y

    @Ben McMahon Thats the best investing advice I've heard yet!

    Thanks everyone, for the input relating to taxes and market opportunity in your area.

    0Reply
  • Rob Milliken
    Wholesaler · Union, ME · Member since 2016 · 148 posts · 27 votes
    9y

    Hi Matthew, I have lived in North Carolina and Georgia. With having young children please before you go consider schools and crime rates. I moved back to Maine, loving the Carolinas for the scenery and many people there, but I will say your home is where your heart is. I lived in the mountains of North Carolina "The Heart of the Smokies" There is alot to say for the way of life there, very simple, but the schools are not so good. I brought my daughter back here. Us Yankees will be second fiddle to True southerners. I told them I was a Damn Yankee came to stay lol. Which  I did for quite some time. With all that being said. If I wasn't here I would be there.

    In the Mountains They actually get snow sooner very often than we do here. The winter season is shorter, they don't have equipment to take care of it like we do here.

    Do all the research and visiting before you uproot and make a move south

    1Reply
  • Shirley Gregory
    Asheville, NC · Member since 2015 · 83 posts · 19 votes
    9y

    @Philip Bard

    Hey Matt, I'm originally from Mass (go Red Sox!) and have not regretted my move south for one second. Winters are mild (50's) and short and Spring starts in March! In NC we do pay taxes on food and clothing which took some getting used to but my property taxes are 1/3 of what I was paying in Mass. I currently have one SFH that I rent out and one apartment bldg that I never would have been able to afford up north. Take the plunge, you won't regret it!

    1Reply
  • Shirley Gregory
    Asheville, NC · Member since 2015 · 83 posts · 19 votes
    9y

    @Matthew Wright  One more thing, I never paid more than $180 for my heating bill in the winter and that is in a 2400 sq ft house, avg bill was $129.   ;+)

    0Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    9y

    Best place to invest: Houston

    Best place to LIVE: San Diego

    Just my opinion :)

    0Reply
  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    9y

    @Cody L. do you mined elaborating why you think Houston is the best place to invest?

    What sort of net returns are you achieving there? cashflow and Capital growth.

    Cheers 

    0Reply
  • Brian Foster
    Investor · Cypress, TX · Member since 2016 · 170 posts · 139 votes
    9y

    Dad was from Westbook/Portland. Spent a week on Peaks Island last October. Deep New England Roots (Rhody boy). Moved to Houston in 1990. The area was devastated from Oil & Gas downturn back then.

    Today's Houston looks nothing like that. 25 years of drawing other industries into the state of Texas has left us with an economy & population that Brookings Institute said was the 2nd largest growth area over the last decade (San Jose was #1) in the nation.  Houston shed >80,000 jobs in the last 2 years and still ended up with the highest employment in the city"s history thanks to all the other industries that have been drawn here by tax abatement and incentives. We have the largest medical Center in the world here.   Expected to add 30,000 jobs to the economy here this year. Oil Rig count for March was 2X what it was one year ago, and Texas Railroad commission granted 2X the drilling permits this year over last (O&G has bottomed and is coming back). 

    Harris Co. has been the fastest growing (population) county in the country for  8 years in a row. Last year that fell to #2 in the country. It might slow a little more due to immigration policy change but the attraction is drawing both domestic and international immigration. Jobs being created here and the economy is growing. Population is the most racially diverse in the Nation (we passed NYC last year).

    Texas is one of the fastest growing economies in the Country and Houston is one of (maybe the top) growth economy in Texas. Not enough single family homes to meet the demand (3.5 months of inventory on MLS).

    Climate vs Maine will be vastly different (hot and humid) but culture will be very similar. Texans (like Maine) don't whine a lot and are not considered snowflakes. Buy a house with a pool, you'll spend a lot of time in it. Look anywhere on the new Rt 99 (Grand Parkway) between Katy and The Woodlands and you will see great appreciation for the next 5-10 years.

    Rent to value ratios are excellent ($150,000 property will rent for $1,500).

    Lots of Sawx and Patriots fans here too. Helps to speak spanish but not absolutely necessary. 

    Plan your vacations back to Maine to see family and friends for Aug & Sep (labor day does not signal the end of summah here)

    Que up Chris Rea "Texas" while you pack the car. Finally this little gem from my neighbors in 1990

    "A yankee comes for a visit, a damn yankee comes with a u-haul"

    1Reply
  • Matthew Wright
    OP
    Investor · Windham, ME · Member since 2016 · 180 posts · 37 votes
    9y

    @Brian Foster Perfect, I like it! This is exactly what I'm looking for.  It sounds like TX is for me, because opportunity is plentiful and snowflakes are minimal.  Thanks a lot for the details!

    0Reply
  • Tim Ball
    Flipper/Rehabber · Carrollton, TX · Member since 2013 · 165 posts · 71 votes
    9y

    Dallas-Fort Worth.  Hollar at me if you come !!

    1Reply
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