In-State vs Out-of State Investing

[Hossam Elaskalani]

Hello!

To be brief, I am a first time investor looking to invest a maximum of ~40k on a property. (25% down 4-5% interest is probably my best financing option, currently getting pre approved right now).

I want to invest local (Massachusetts Metrowest region) however with my budget and financing I would be lucky to find a 1 bd 1 ba condo due to the inventory shortage we see nationwide. In the possible deals I’ve analyzed I’m looking at I can probably get away with cash flowing ~150 a month which I can live with since I intend on holding this property for a very long time which is why I don’t seem keen on waiting for a market correction. (Open to hearing why I should reconsider)

But I was thinking, 40k can probably get me much farther in another state. So my question becomes this:

If you had 40k for a down payment would you choose to stick local for your first property or would you consider out of state, and why?

Thank you!

[Jason Regan]

I looked into out of state investing, but bought my first property in Ma. I know Ma has some very hard tenant landlord policies and can be expensive. I looked in Memphis and other areas where it is more landlord friendly and the prices are cheaper. The reason I stayed in state boil down to 2 reasons. 1 is that this is my first investment so I want to see it and know it before going forward. I know this will change in the future but it made me much more comfortable. I can also self manage to save some money while I have a small amount of doors. The second is I had a hard time finding BRRR protentional farther away. I don't know the market so it was hard to figure out what actual repair costs are. I do want to find a team elsewhere when it opens up to begin BRRR elsewhere.