All Forum Posts by: Ethan Haigler

Hello @Max Engel,

Most people want to invest in real estate close to where they live - that's natural. But here's the thing: to actually live off your rental income and be financially independent, you need to invest in a city with the right characteristics or you can not maintain financial independence.

Key factors for a successful investment city include:

• Population Growth: Cities with significant and sustained population growth typically have rising prices and rents. If your rents don't increase faster than inflation, the number of properties you own becomes irrelevant—you won't be able to maintain financial independence.
• Low Overhead Costs: every dollar you lose to cost like taxes and insurance is a dollar or less for you to live on. Be very aware of the overhead cost of the city where you invest.
• Job Growth: a rental property is no better than the jobs of your tenants. In the US, companies have an average lifespan between 10 and 18 years. So, during the year you will live on your rental income, your tenants will probably have to find replacement jobs on more than one occasion. So your future depends upon new companies, moving into the city and creating replacement jobs. Companies have a lot of options on where to set up new operations. The most common factors that companies based their city selection on are as follows..
  • Metro Population: 1M+ population provides infrastructure and workforce.
  • Low Crime Rates: Safe environments attract businesses.
  • Pro-Business Climate: Favorable regulations encourage growth.
  • Competitive Costs: Lower operating costs attract companies.

"Live where you love, but invest where you can achieve financial independence." Choose investment locations based on financial goals, not proximity to where you live.

Remote investing works. The critical factor is a competent full service local investment team.