Colorado or overseas?

Question

Hi BP nation!

We are a married couple in our late 30s/early 40s. She works in higher education in Greeley, and I work in consulting (lots of travel, and spend a good portion of my time in Virginia). We keep our finances very independently of each other and so far pay separate rents due to my frequent absences and travel.

We just submitted paperwork to get approved to buy, and will start looking at properties soon. The original plan was to buy a full duplex in Greeley, CO to rent the other side, but they seem to be rare and over our budget (we qualify for 300s up to 400). The new plan is to buy a smaller, single family, to build equity and give our finances a break (I will be living rent-free during my stints in VA, and re-directing that money towards our property). Thoughts on this strategy?

I also have the opportunity to invest overseas, let's call it Fantasy Island, where I could purchase a decent apartment for $90K and rent it out for $800/month. It seems that every dollar invested yields a higher return in Fantasy Island, but my wife also needs a place in Greeley where she won't be tied to a $1200 rent, and I can use the potential appreciation for an eventual profit.

So, do we focus our efforts in one of these? Which one? Any strategy we are not seeing here?

Bill S. · Answer

Account Closed I second the idea of getting something local. Stop paying rent and getting some equity. You might consider a house that you could rent out part of it as a house hack. Perhaps one that has a walkout basement with wet bar that could be tweaked to be "roommates" pad.

Account Closed · Answer

Thank you all for the valuable input! I appreciate it.

Kevin Grinstead · Answer

Hi Mauricio, there might be some roommate options with the house you buy in greeley or if you separately can buy 2 condos or townhomes, maybe you can live in 1 and rent the other.

Overseas can be great but you need a very trustworthy local person to manage your investment and make it work.

Good luck and Happy Investing

David Thompson · Answer

Mauricio,

I like the simplicity and ownership of buying something local that you can learn and keep an eye on in a market that you know the rules (transparency), language and customs. Fantasy Islands are more fantasy than solid business sense. Save fantasy for vacations and let others lose money mixing fantasy and business. The latter doesn't mix well. I've had 3 intl properties, made money in one, lost in another and will likely lose again. All places sounded like fantasy islands to me, path of progress plays, but the unexpected is expected in intl investing IMO. Laws, currencies, economies, politics, higher cost in just about everything from a management standpoint, language and customs challenges, you are fighting w/one arm behind your back in trying to make these deals profitable. Stay local, learn and prosper. What you can't imagine now that could go wrong in intl usually does.

Colorado or overseas?

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