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Updated over 2 years ago,

Account Closed
  • Massachusetts
9
Votes |
59
Posts

investing from overseas. Cash flow or appreciation market?

Account Closed
  • Massachusetts
Posted

Hello everyone. Been doing a lot of research, reading and listening to all the podcasts available and deciding what to do as I plan to be overseas in a year or two. I am out of a job as I sold the properties that I managed the last 6 years (2 hi rise mixed use buildings). I am ok at the moment as I do not want to go back to a 9-5. I have capital, equity on my residence, low debt, I am looking at multiple pathways, I am looking at either

1. getting a bunch of OOS SFRs to have cash flow for my lost income

while I’m overseas. I worry I will be too dependent on these and make some big mistakes as I’ve never done OOS investment before. How can I make these flawless? Where can I get good information on markets? After being so hands on I have a hard time letting go to a property manager and not seeing the asset with my own two eyes. Researching on markets not too far from northeast such as Columbus, Ohio parts of Pennsylvania, possibly New Hampshire and Rhode Island as well but they are quite expensive. Even looking at Worchester, Fall River and Lowell but I’m not feeling them.

2. Apply for a low money down FHA loan and house hack into a multi family appreciating asset in a hot market in MA. The cash flow will be rough. But banking on appreciation as I will be holding for the long term. I stay for a year or two before moving overseas and it may get us packed up and ready before hand, but moving my family around a few times sounds awful. Does an FHA need income to qualify? I have lack of income now and wife is self employed with sporadic work due to school. I will be hopefully getting some passive income in a few months through a commercial NNN lease deal where I have 20% share of. It's not much but I hope it's enough to get qualified for an FHA loan. After moving I'll have an appreciating asset and cash flow down the line.

3. Whenever I move out of my current residence either in the house hack or overseas I will rent out my current primary which will definitely cash flow and then sell within 2 years to take advantage of the capital gains exemption. I will use that to buy another property either overseas or in the states.

If you were in this scenario which would you choose to invest while overseas? House Hack an expensive entry to market yet historically appreciating asset or OOS cash flowing SFRs? What is less risky? What are my exit strategies for both? What are other cash flowing investments I can consider?

Appreciate your thoughts

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