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Updated about 9 years ago, 11/18/2015
Stuck on Step 2- What is the best way to get set up for success?
I'm stuck on WHERE to get started. I've got a good grasp of the big picture of real estate, I've been a part of various real estate groups as well as read/listened to many books/audiobooks on real estate.
I've been an international teacher for the past 6 years, so I've lived in several different countries, but not in the US. My last gig was in Dubai where I am at the moment.
My question is WHERE do I choose to invest?
The pros and cons of 3 cities:
Richmond, Virginia.
Pros: It's the town where I grew up, went to high school, college/university and where I visit when I return to the states because my parents still live there. This is a pro because I have a network of friends, a familiarity of the community, and the city. It's in the US, I'm a US citizen and the legalities are more straightforward. If I choose to invest here, I'll need to get a job to support myself while I get through the "starting out" phase.
Cons: Income tax, my parents are moving to Tampa, Florida for retirement next year. I do not currently reside here.
Tampa, Florida
Pros: My family (2 brothers, nieces and nephews, and my parents) will be there and if I'm living in the US, I'd like to live near them. Could be a fresh start. Could be good for vacationers rentals. It's in the US, I'm a US citizen and the legalities are more straightforward. No Income Tax. If I choose to invest here, I'll need to get a job to support myself while I get through the "starting out" phase.
Cons: I'm unfamiliar with the city having never lived there. I don't have a network of people I know outside of family. I do not currently reside here.
Dubai, UAE
Pros: It's where I'd prefer to invest because I'm currently in the city, I'm a member of a cycling team, I've got a current network of day-to-day friends, athletic clubs I'm a part of. I have a pilot boyfriend who I live with and financially supports me which enables me to focus on important things instead of going to work. Dubai is Tax free. I'm semi-familiar with the city as far as socio-economic areas. My current strategy would be to lease and sublet because I do have money to be able to do this on my own, or to buddy up with others to buy a property.
Cons: The market is not affordable for the amount of money I have, fees for everything are so high. Because I don't have a job, I can't get a mortgage. I do not have a residence Visa with prevents me from doing legal things. LTV is 25% for first mortgage and 35% for second mortgage. As a teacher making $4,000/mo, my salary wasn't even high enough to qualify for a mortgage.
General questions:
How important is it to be in proximity of the first investment property?
Is it wise to do an investment property for the first time with partners? Is 3 other partners too many to start out with?
Is the Tax status of each city something to be concerned with?
What other advice/thoughts do you have?
I feel frustrated because I feel that if I were in the US, I could buy a property deal outright with cash and a business plan that it could cashflow and pay its own mortgage. But if I move to the US, I'll have to start paying taxes and get a job. I'm driving myself crazy going back and forth on investment decisions between the US and Dubai.