Seattle Area Duplex or Turnkey in Memphis?

[Christian Bateman]

Hey Everyone,

Should I be investing out of state where there is better cash flow, or should I continue to house hack/invest in my hometown?

Loaded question, I know. I've been running numbers on duplexes in the area (Bremerton, WA) that I would like to househack, and they might make the 1% rule, but just barely. The one I'm looking at is a 2/1 duplex currently renting for $1050/unit, but market rent is easily $1300. Duplexes in the area are going on the MLS for ~$290+. I'm struggling to decide if I should continue to house hack and invest in this area where cash flow seems pretty moderate and you have to break almost every rule (2%, 50%, etc) to make an investment decision. Note: There is definitely a lot of upside in the area right now due to overflow from Seattle and better transit options into the city, but I don't want to bet on this with the market being where it is right now.

Our current house hack has worked out great and enabled us to save a ton of money. Now we're just trying to figure out if it makes sense to double down on our area or invest where there's less competition and more ROI.

I've got a good job, good income, trying to replace it that with rental income as soon as possible. Any suggestions? It looks like turnkey might be a good segway into out of state investing? Any Turn Key recommendations? I've heard Memphis Invest is good?

Would you buy a duplex for $270K that rents both sides for $1300? 

Thanks!

[Stephen Akindona]

Although I am from the Memphis market, I would always advocate for investing where you know the market! Naturally you will know the market where you live the best but that doesn't mean you can't learn another market. I have seen many invest out of state with various providers and end up hurt because they just did not know the market. You need to be able to trust who ever you are working with but you also need to understand the market you are investing in! If you can do that then by all means invest out of state. Never stop looking for deals where you live, you can do both strategies it doesn't have to be one or the other!