Buy Personal Residence or Start BRRRRing Out of State?

[Damian DelSignore]

Hi Everyone,

I’ve been a long time listener of the podcast and have been saving up money to begin my real estate investing career. I currently am 25 with about $50k in cash saved up.

I live in Austin, TX, where tons of companies and people are constantly moving to. Originally, I planned on buying a small multifamily here to househack, but then realized that it’s very difficult to find a multifamily that will cash flow (even if I rented the whole thing out).

I’ve also started reading David Greene’s book on out of state investing (among other investing books) and it seems like BRRRRing out of state could be a good option as well.

So my question is, should I focus on saving money to 1) buy a primary residence in Austin, where companies/ people are constantly moving to (since prices are expected to keep increasing), or 2) should I use my money more efficiently and BRRRR out of state?

My long term goal is to be a buy and hold investor, while still working my full time job.

I appreciate your responses and thanks for reading this lengthy post.

Thanks,

Damian

[Jordan Moorhead]

@Damian DelSignore you can find a property to househack in Austin, I did. It’s just a lot of work and difficult.

I’d start with househacking and then look at markets close to you like Killeen or Temple.

Out of state sounds sexy but in all reality you’re better off being able to drive to your properties and there’s opportunity close to you.