Hello from Seattle: Local purchases versus distant?

[Michael D Danielson]

Wife and I are just getting serious and are working thru a couple of our basic business strategies going forward. We have had a first home renting out now for 5 years in Bellevue WA with an 22% LTV. Problem w Bellevue is its P/R ratio is currently about 30 with a $1M property and its below median for Bellevue area. We are looking to pull equity out to reduce down to a $100 Cash flow only and reapply the equity to between 1 to 3 80/20 purchases. Problem is that 30 P/R ratio means we can only pull out about 50-60% total equity to stay cashflow + on existing rental.

We are working the the buy one local versus purchases 3 or so longer distance with much lower P/R ratios decision.  Wondering what others starting out have experienced with the Price/Rent ratio and local versus long distance decision.

2nd wrinkle is long term intent is both buy and rehab and buy larger lot subdivide and build 2nd on divided lot.  Done carpentry beyond just DIY since High School and College summer jobs and considering if getting my GC would help with rehab and build still knowing all specialized subs would be required.

3rd and final wrinkle is if its worth getting a RE license for the longer term to eliminate that 3% from Buy and Sell side of numbers.  Wife is an attorney and can execute a private sale but having one of us as an RE would help trim the margins I think.

Wondering if the others here starting out encountered these questions and what direction you may have gone?

Thanks,

Mike