All Forum Posts by: Tyler Galloway
Tyler Galloway has started 1 posts and replied 2 times.
Post: Should I purchase a 2nd rental property out of state?
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@Mike Roy - Thank you Mike for your advice. I guess I had never really thought of just outright selling the condo. If we were to do that, it would be eligible for a 1031 Exchange correct?
If so, that would certainly open up the local market and would probably make me feel a lot more comfortable. My in-laws own rental property in SoCal already (a cash flowing triplex in the San Gabriel Valley) and it would be ideal to follow in that same mould and have properties that are nearby.
Our ultimate goal, for now, is to more or less supplement our income, not to replace it.
Post: Should I purchase a 2nd rental property out of state?
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I live in the Southern California market and am beginning to consider RE investing. My wife and I already technically have a property (we moved out of our condo and have been renting it out with a $700/mo net).
Our best option right now would be a cash out refi on the condo. We owe 105k and it's worth 400k.
However, the SoCal area is cost preventative for RE right now (especially considering we have, at most, 215k out of the refi and would then be operating our condo at a loss.
I'm starting to consider Phoenix, AZ. It's a growing economy, prices are in our range, it's a fairly close drive/flight for us and, here's why I'm leaning there, my parents are retired there.
My questions:
What are some of the big hurdles that you have found doing out of state RE?
In my position, what kind of properties should I be looking at?
Does the area I'm looking make sense from a RE sense?