A place near me, or near my family?

2 Replies

Hi Everyone,

I'm trying to decide right now between buying a place near San Marcos, TX, or buying one near me.  I've used the calculators, but could you help me think this through?  

San Marcos:  It's near my family, and I can now visit several times a year and check out the property as a business expense.  The prices are lower (about $125K-$175K), so it seems like I can afford bigger places there.  Right now, it seems like the market is so hot, it's very difficult to get to the 1% rule, but I can get close with some of them (.8% or .9%).  I can't really get a fixer-upper as living far away, it's more difficult to do rehab/repairs.

New Jersey:  I can get a multi-family that's about 3x more ($350K), and hit about .9%, the low estimate rents are $3100 total.  There will be repairs, perhaps $20K?  However, it would take a lot more of my cash right now, and I was hoping to save for a wedding next year.

Seems difficult to get to that elusive 1%, but I really don't like my money sitting around right now and I'm itching to find a deal!

If purchasing a property in $350k range is going to make you tight on cash, then I would go for a lower cost property, because you are going to need extra cash on hand for unforeseen expenses. Who would manage the property if you purchased in Texas?

Another option is to look for properties further away from where you live, but still in driving distance. There are plenty of lower cost areas within less than 2 hours of Fort Lee, NJ that could meet your cash flow criteria.

Be patient with your search. I understand that you do not want your money "sitting around", but if you make a poor property selection, you are going to be wishing all it had been doing is sitting around!

Originally posted by @Rick C. :

If purchasing a property in $350k range is going to make you tight on cash, then I would go for a lower cost property, because you are going to need extra cash on hand for unforeseen expenses. Who would manage the property if you purchased in Texas?

Another option is to look for properties further away from where you live, but still in driving distance. There are plenty of lower cost areas within less than 2 hours of Fort Lee, NJ that could meet your cash flow criteria.

Be patient with your search. I understand that you do not want your money "sitting around", but if you make a poor property selection, you are going to be wishing all it had been doing is sitting around!

Hi Rick,

Thank you for your advice!  Very helpful!  

Best,

Henry

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