Moving into a house hack, in another state...

[Gavin Dowdy]

Hey there Bigger Pockets community, first post here!

I recently got a job offer in another state and I'm trying to weigh all the pros and cons to see if that's something I should pursue, or if I'm missing something or have options I'm missing. Allow me to elaborate.

I'm 22 years old and currently live just north of Salt Lake City, UT. I have a job I enjoy, and bought myself a townhouse to live in about 5 months ago. Two weeks ago I got a call from my previous boss offering me a position near Portland, OR with a decent raise, doing work similar to what I do now.

Obviously there are a lot of factors to take into account when considering that big of a move, but the one that's hanging on my mind the most is what I should do with my current home. Looking at what I owe on the house, what comps are selling for right now, and having a discussion with my realtor and a few family members, everyone is suggesting I keep the property I live in right now and just rent it out, then move to Oregon and buy a second property there.

What I would love to do is exactly that, rent out the townhouse I live in currently to cover the mortgage, and cash flow if possible, then purchase a home near my new job and house hack there to cover most/all of the mortgage and live "for free". Unfortunately, I don't think the property I live in now will pull in enough rental income to cover the mortgage, and on top of that, I'm fairly certain selling the property would actually take money out of my pocket.

I do have some time to think about all this, since the company I work for has a travel ban in place right now due to COVID-19, I'm not able to travel to Portland for work yet, but whenever this pandemic ends, this job opportunity and big lifestyle change will be staring me in the face asking for action to be taken.

I want to get into real estate investing at some point in my 20's, and I don't want to set myself up for failure by making bad choices with my current situation. What would you all do? What would you recommend I do? Do I sell the house and just take the losses, then try to rebuild my cash reserves to put a down payment on a new property? Am I missing something that might make the property work as a rental?

Any advice or suggestions are more than welcome. Thanks in advance!

[Mathew Wray]

@Gavin Dowdy

I’m generally a guy that advises against selling as much as possible-you’ve already got the asset, gone through the search and buying process, paid the closing costs, etc. 

While there will be plenty of good properties to house hack here in Portland when you get here (eventually), the real question is what to do know. With a low down loan on your townhouse there in UT it’ll be hard to see the rent bumping up enough to make the risk of negative cash-flow worth it. 

A couple thoughts/questions:

1. Is taking the job in Portland going to provide that much of an income boost to even be worth the headache/move?

2. Is the wage increase substantial enough to offset the negative cash-flow by letting you make up the difference without impacting your quality of life?

3. Is anything happening in your area (not that familiar with UT, sorry!) that makes you believe you’ll get an appreciation jump in the next handful of years (university expansions, major employer relocation, public works, etc.??) 

4. don’t let current events dictate your future response...obviously there’s a cloud over everything right now but we know it will pass in time just like wars, terrorism, and financial crisis’ in the past. 

5. Finally, can you rent by the room there in UT to earn more from two-rooms than one unit? Might not be enough space but might just make it worth it too. 

Those aren’t answers, but maybe answering them will help clarify the situation and your options. 

Best of luck!

Mathew