My name Is Joshua and I am new to the Bigger Pockets community. I am interested in building passive income through rentals but I have done a couple flips to build my wealth faster. My girlfriend and I would like to move to a bigger house but I can't decide if I want to sell my current house for nice profit to invest in out-of-state rentals or just rent it out for 200$/month cash flow.
I currently live in Mesa, AZ about 30 minutes east of Phoenix. As you all may know, the real estate market here is booming. I bought my house for 97k back in 2013 and it is currently worth around 170k. I refinanced back in 2016 and took out 35k to do a flip in Las Vegas which did pretty well which left me with 60k in the bank and 120k loan. As much as I like the profits of the flip, I am more interested in passive income.
Now that the numbers are out of the way. . .
Buying a rental house here in Phoenix is not an option with how hot the market is. It is very difficult to find a deal to fit the numbers considering every 3/2 in the B class neighboorhoods are over 200k.
If I sell, I would be sitting on 100k which I could use to buy property out of state (currently looking in Memphis and Indianapolis) where decent houses are going for 80-120k. If I don't sell, I still have 60k to invest out of state but I'd have an extra $200/month.
What y'all think?
I would try to think out side the box a bit locally when comes buying rentals. Need to remember when competing for a style of house that the masses are after its going to be some stiff competition. For me to consider buying out of state property I have the ability to be able to drive or fly there if needed.
Could rent out your current house than move to another live in it for the required period of time than turn that into rental as well.
Figure out what your long term goals are of and work backwards from there.
Thanks, Brian. I will keep that in mind. I might have to re-think investing out of state
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