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Samuel Hunker
  • New to Real Estate
  • Flagstaff, AZ
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Do I try to Start Investing in an Expensive Area or Move?

Samuel Hunker
  • New to Real Estate
  • Flagstaff, AZ
Posted Feb 7 2019, 22:58

I want to start out buying multi-family properties for rental income. I just landed a good job at a large engineering company, but the housing market is expensive here in Flagstaff, AZ, making the barrier to entry difficult for beginner investors. Almost all the properties I find on MLS are condos, townhouses and SFRs, and the average list price is $445k. There doesn't seem to be very many MFRs, and a decent SFR with 3 beds, good location will be at least $350k. But when I look at say, Atlanta's MLS, theres dozens of fourplexes in great shape and locations listing for $150-$500k. I found several fourplexes listed for 150-200k that currently have tenants, that generate $3k a month in rent. In Flagstaff $150k might get you a shack out in the boonies or a 3 bed 2 bath mobile home that needs some major work and would rent for $1.8k. So do I save up for a few years for a down payment and buy one property with at the most, 4 rooms to rent out, or move jobs to a large metropolitan area (like Atlanta), and buy 4 or 5 MFRs? The price-to-rent ratio seems so skewed in my area. Has anyone ever moved for this reason or know of other discussions on the subject?

Thanks,

- Sam

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