Start investing if planning to move out of state in two years?

2 Replies

Hey guys, i'm really interested in BRRRR type investing but im running into two road blocks;

First, im planning on moving out of state in two years (colorado > tennesee, or colorado > utah), im worried about investing and leaving, having to hire a property manager and be more than a days drive from the property.

Number two, its very hard for me to find a 1% let alone a 2% deal here in the denver metro area as a first timer. Im trying to buy a Multi-family duplex to househack with and its making me wonder if i should just wait till i move somewhere cheaper? 

Any advice on what you would do would be apreciated, i'd love to see someones point of view besides mine. 

Thanks.

My advice, when running your numbers, always figure in property management fees, even if you plan on self managing. We bought a property to house hack with the intention to hold on to the property after moving and self manage. Numbers all made sense. But life happened and now we're moving out of the city and too far away to self manage, so we have to sell. Don't be afraid to invest now, just make sure the numbers make sense for when you leave.

@Kieler Stubbs

Couple different ways to look at it. I think getting started earlier rather than later is always smart because it's like pulling off the band-aid. Get going! That's true no matter the market, even in Denver where cash-flowing is tough.

That said -- and at the risk of sounding like a real estate that just wants to sell -- I still think buying and house hacking in Denver for those two years is smart. Some rough back of the napkin numbers:

Find a SFH, 4br+ for $380k or less. If you put 5% down, you've got an all-in payment of around $2,100. If you live in one bedroom and rent the other three for $750 each, that covers your entire mortgage, plus a little. Let's say you were paying the average 1br rent in Denver of roughly $1500, that's $36,000 you'd pay in rent for the next two years. Not only are you not paying that, you're also gaining equity in a home paid by someone else, and any appreciation that comes along with it. When you move out, you rent the final room and you're cash-flowing well then.

Here's a few deal diaries of rent-by-the-room house hacks in Denver -- this one in Aurora, this one in the Barnum neighborhood.

We've also had a few clients do a modified version with a basement apartment or a basement space that has a separated entrance. You rent the basement to one or two people. It's a little less revenue but you get more privacy. When you move out, you still rent out by the room to juice the rents.

Anyway, my two cents. Good luck!

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