Updated 2 days ago on . Most recent reply
Out of state investing
I have just recently discovered the possibility of real estate investing and I'm concerned whether I should invest out of state or not. I currently live in San Diego but seem to find the area too expensive for my liking. I am active duty military so I move around every few years for work, so I'm trying to decide if buying a property here and house hacking for the next couple of years until I move or making my first investment in a cheaper area is the better option.
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John Clark
#3 Out of State Investing Contributor
#3 Out of State Investing Contributor
"I have just recently discovered the possibility of real estate investing and I'm concerned whether I should invest out of state or not."
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As a former military man myself, and knowing the demands of investing out-of-state in general (check Bigger Pockets in general for the perils of investing non-local), I will give you some advice in military parlance so that you will absolutely understand when it comes to non-local investing:
"Not 'NO,' but "F*** NO!!!!!!'"
You will note that everyone telling you to buy out-of-state is either a real estate agent or an investor who has something to sell. That means that they get paid on commission or for a sale. They don't care if you make money. They only get paid if you buy. Once they have their paycheck, they are gone.
Where are you in your military career?
If you are less than an E-6 or O-3, you should be concentrating on learning the the ropes. If you are ready to take the plunge, buy local, house hack, and have a management company lined up for when you get transferred. Run your numbers conservatively.
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As a former military man myself, and knowing the demands of investing out-of-state in general (check Bigger Pockets in general for the perils of investing non-local), I will give you some advice in military parlance so that you will absolutely understand when it comes to non-local investing:
"Not 'NO,' but "F*** NO!!!!!!'"
You will note that everyone telling you to buy out-of-state is either a real estate agent or an investor who has something to sell. That means that they get paid on commission or for a sale. They don't care if you make money. They only get paid if you buy. Once they have their paycheck, they are gone.
Where are you in your military career?
If you are less than an E-6 or O-3, you should be concentrating on learning the the ropes. If you are ready to take the plunge, buy local, house hack, and have a management company lined up for when you get transferred. Run your numbers conservatively.