Traveling for work - Where do I invest?

Question

Fresh out of college, making more money than I have ever made, and am ready to start investing in some small multi-family/single family real estate. I've done my research, sort of found a niche, and have connections in the industry but have yet to find someone in a similar situation where I can get some real guidance.

I currently am a construction manager and my company moves me every 1-3 years depending on the duration of the job.

My question is, where should I begin to invest? I've only lived in my current location only a few months, and although it seems like a booming area, the real estate price tag is higher than what I want to get started with. Plus, I may have to move within the next year or so. I do have more stable locations such as my company headquarters, where my parents live, and my old college town where I have connections and have been doing most of my price analysis'. All of these are at least 250 miles apart from each other and over 500 miles away from where I am currently. I do like taking risks, but would like to get opinions from others who may have dealt with similar situations.

Thanks!

Chris Levarek · Answer

@Tanner Peabody The sooner you can acquire assets at current inflationary rates which then appreciate the better. As you might know, the dollar value decreases daily the more money is printed. Thus for every asset you don't purchase, it will take more dollars to purchase it tomorrow. So start now.

As far as where to invest, invest where it makes sense. I live in Phoenix, Arizona and invest in North Carolina, Ohio and Texas. Those areas meet my business needs and investment criteria. I work mainly with multifamily and apartment syndications so I can only recommend those areas at present I think are good for that type of asset.

Some recommendations include, Texas(DFW, San Antonio, Houston), Ohio(Columbus/Cleveland), Florida(Tampa/Orlando/Jacksonville), North Carolina (Raleigh, Charlotte), Tennessee (Nashville), Indiana (Indianapolis), Arizona (Phoenix/Tucson), Colorado (Denver).

Consider even investing passively in an area to learn the market and build the network. Either way, Create the vision or goal. Define the strategy. Build the Team and Invest where it makes sense. :)

Nic S. · Answer

@Tanner Peabody house hack in every state you live in. 3.5% down stay 2 years then rent out your unit.

Tanner Peabody · Answer

Thanks Jim.

Knowing what you know now, would you have rather waited 10 years to get into RE or would you have made a deal earlier?

Brian G. · Answer

@Tanner Peabody while it is a much more challenging prospect to invest in a market you are not living in, it can absolutely be done. Personally, I would choose a market that you know best and have people there that you trust. If a viable market exists that you know well and have some contacts, start there. Advice: Don’t let purchase price dictate where you invest and make sure you buy very desirable properties. What you buy in a given market is the most important decision you can make that will mitigate your risk. Said another way, buy the nicest assets you can afford! My $.02. YMMV

Zeke Liston · Answer

Hi @Tanner Peabody, congrats on the job. I would recommend Columbus, OH.

Tanner Peabody · Answer

@Nic Stergion

This brings up a great point. If I was single, I’d definitely think about the house hack idea. I am getting married in a month though, and I’m sure the wife wouldn’t like the fact of sharing a home.

Now listen to this.

My company currently pays about half of my rent (the average 1 bed unit in the city of the headquarters). I currently have a 2 bed apartment and pay extra for a garage unit. But if I have a mortgage (home), the company pays for 100% of my rent and expenses traveling out of state. If I take the “mortgage” deal, I’d be able to put that extra grand of rent on top of the money I’ve budgeted out for investments into a mortgage/renovations...

This sounds obvious, but wouldn’t it make sense to get a home/duplex, pay for that mortgage, all while the company covers my share while traveling, then renting out that home or units?

While typing this out I’ve realized that I’d hopefully be at least even on a mortgage and still getting my living expenses covered, plus getting my spouse and I’s normal salaries...

I think I may have just made up my mind.

Remington Lyman · Answer

I would recommend looking into Columbus, Ohio. A lot of OOS investors have been successful in this market.

Tanner Peabody · Answer

I gotcha. I'm not saying that I want to quit my job and go full time with real estate. Using my w-4 job to fund my investments, I'd like to get started with something soon. That'll allow for many years of failures and teaching moments that will get worked out with time.

Nic S. · Answer

You’re welcome ;). Good luck @Tanner Peabody

Angela Dulin · Answer

@Tanner Peabody Hey Tanner, I agree with Chris, I am an agent in Mid TN/Nash area. I work exclusively with investors finding the types of investments you are looking to get into. Some rehabs/flips, others buy/hold SF-MF rentals and even tear downs for new builds. I have multiple clients who have worked within the frame work you are suggesting in regards to moving from city to city within a couple of years. Rentals seem a natural fit for this as a long term strategy, but in my experience a balance of flips and rentals allows for a bit more flexibility. Quicker cash flow with flips, but anchoring in some rentals allows the city to continue paying you, even after you move on. Feel free to reach out if you have any questions. I’d be happy to help.

Angela

Traveling for work - Where do I invest?

Traveling for work - Where do I invest?

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