Flip local or BRRRR out of state?

[Ryan Landers]

Hello all,

Looking for some thoughts from the group on my first single family investment project. I'm trying to determine what is a better strategy between flipping something local or using the BRRRR method out of state. I have $65k for this project.

My primary residence is in Austin, TX. The market is pretty competitive here and the higher cost of homes make it really tough to find deals that will cash flow with the BRRRR strategy. If I'm going to do something here in Austin, it would likely be a flip. I'm a decent W2 earner so my profits would be taxed at a pretty high rate.

The other approach I'm considering is BRRRR in Cleveland, OH. My wife has family there and the homes are much more affordable and cashflow easily. I've found a turnkey partner that I feel comfortable with in the area.

Another option which I'm considering is renting out my current primary residence and purchasing another home here in Austin that my wife and I would move into as our new primary.  It would cashflow around $500/mo if I self managed.

All thoughts, comments and constructive criticism welcome.  I think I just need a little nudge in the right direction...