Investing in your future home market

[Jordan Higley]

Hello,

I'm a new investor, I actually just bought my first rental property this week. The problem I'm facing is....I eventually would like to move to another market because I don't see myself staying in Texas forever. My question is...how hard is it to invest in a market you don't live in? Can it be done? My plan is to move to this future market one day...but won't be able to until I can quit my job.

Is it more reasonable to invest in my current market...build a portfolio, and eventually move after I acquire enough real estate to quit my job? Or is it possible to start investing in this future market in preparations to move there within the next few years.

I hope this all makes sense. This is my first post and I expect to be a long time member once I get my feet wet and start acquiring rental properties. Thank you all in advance for your suggestions.

[Elizabeth Colegrove]

@Jordan Higley 

Welcome to Biggerpockets!

Congratulations on your first house. The first is always the hardest. Once you have it your hooked, at least that was the case for us.

My husband is active duty military. So we are a very transient population. We move a lot, and it's all over. We own 5 houses (4 rentals) in 3 different states, 4 different cities. The houses in Charleston, SC were pure investments. My husband went to school in Charleston but when we bought the properties we lived 6 hours away.

I started a blog/website about our experiences because it has been so rewarding. Oh it has had its moments but everything has its moments. We have been successful self-manaing retaining our profits. In my experience no one care about your property as much as you do. So this allows me to keep control over my properties and prevent a middle man.

We plan on trying to buy our "retirement" home in a few years. We want to lock in the rate, price and have someone else pay on our mortgage. We don't plan on settling down for 15-20 year depending on his navy career. 

So to answer your questions directly. While investing in a market you don't live in can have its challenges it is totally dupable. We also don't plan to move into our final market until he gets out of the Navy.

We invest in our current market, past markets, future markets etc. When we finanally get out of the navy and settle down. We plan on consolidating all of our houses into the one area doing a 1031. This allows you to sell the house and as long as you reinvest the houses within certain rules you don't have to pay back deprecation or pay the capital gains.

Good luck! Check out the blogs and podcasts. Let me know if I can help. I totally get where you are coming from!