Buy Now or Wait? Managing Rental Properties After an Out-of-State Move

[Caleb Graham]

So I’m planning to move 1,000 miles away from my hometown in approximately two years. This move is a dream for both my fiancée and me, so it’s not something we'd reconsider. I’ve been actively making offers on duplexes for the past several months because I want to get started in real estate now. However, I'm starting to worry about managing these properties once I relocate.

While cash flow is likely to break even or be slightly positive, paying 8-10% for a property manager would significantly eat into my margins. Right now, I’m living rent-free with family, and I could continue to do so for the next two years before moving.

Here’s my dilemma: would it make more sense for me to continue to save money and start my real estate investing journey in my new state? Or am I overthinking the difficulty of managing these properties, is a property manager necessary? I’m really conflicted and would love any advice or fresh perspectives!

[Nathan Gesner]

Quote from @Caleb Graham:

Add PM costs to your calculation. You should always do that, even if you don't plan to use a PM. Your plans may change and you need the funds to cover that expense.

I recommend you consider a house hack right now. Or buy an investment while still living for free with family. Do something and hold it for two years. Gain two years of experience managing a rental. Continue saving. When you move in two years, transition that property to a manager and then buy a house hack at your new location.