All Forum Posts by: Marcos Medeiros

House hack is likely the better option. You need to live somewhere and right now that is South FL. You say you want to stay there which means you still need to pay for a living situation whether that is rent or a mortgage. If prices are high there, rent is likely high too. So, if you invest out of state is that going to cover your rent in FL and give a return? Doubtful. In other words, getting say $400 a month in positive cash flow out of state while still having to pay say $2000+ a month in rent makes less sense than getting a home where you instead cut your costs down to say $1000 a month or less by renting a portion of the property out.

Better to get your foot in the door in FL with a house hack where you can reduce your living expenses as much as possible by renting rooms or finding a multi-unit property you can make work. Do this while saving for the next one. After a few years the home and rent will have hopefully appreciated (though even if it hasn't you will still have built equity through debt paydown) and then you can decide if you want to keep it as a rental, sell it and go for something better, or invest out of state. 

Then I would consider house hacking. Marry the property and date the rate. 

What is your plan in 3 to 5 years from now from a living situation?

It isn't a bad idea to consider investing outside of your state, but there are inherently more risks with closing on a deal for a property you may have never flown out to see in person. If that is the route you choose, be sure to pay for a reputable home inspection and renegotiate the purchase price based on the findings. And take the time to do the research on how much the closing will realistically cost you; I know in PA, the transfer tax alone on each property sale can be enough to discourage some investors. For example, if you were to buy in the city of Pittsburgh, the transfer tax of the sale will equate to 1% of the sales price paid to the state and an additional 4% of your sales price paid to the city, so before factoring in any closing costs/fees/ agent commissions etc, you are already adding on 5% of the agreed upon sale price. Every state calculates different, so doing the research upfront can save you a lot of money on the back end.