Semi Local Or Out Of State?
Hi all,
I live in the Bay Area region of California. I have some cash on hand and also about $200K equity in my home. I want to buy a rental property , probably 3 bed single family in a suburb. These properties within 60 miles of my home are too expensive. The properties 60-100 miles away are more affordable. I plan to get a property manager for the 60-100 mile property. If I plan to use a property manager anyway, would it make sense for me to invest out of state or over 100 miles away? The further away I go, the lower the price of the home. Of course i understand that whereever I choose I will want some degree of appreciation. thanks for your insight! p.s. In california people are over bidding sometimes 60k -100k for homes...what do you think of this? Should I wait another 12 months before buying?
You have to decide how far away yuo are comfortable investing in. I would advise to be prepared to visit the properties once a month or so to make sure the PM company is doing a good job.
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