Should I move to invest?

Question

Hey community,

I've wanted to move for a long time now. I currently live in Clearwater, FL and have lived here since 1997. I'm 25 now and my wife and I want to move somewhere else. We're looking at Dallas, Denver, or Houston. Is it smart to move for the purpose of investing?

We want to house hack in whichever city we move to. Has anyone else done this?

Thoughts?

Benjamin Carver · Answer

Hey Scott, what are your thoughts on moving to CO as a young professional? I love CO and want to end up there, but the cost of living is much higher than here in Texas where I currently live. I wouldn't be able to invest in as many deals, at least not locally, because house prices are so much higher. How does one choose between a state with a lower cost of living that would propel their FI journey and a state that they think is awesome?

Scott Trench · Answer

I think that the point of investing is to produce passive income to cover the cost of living wherever you might want to live. Therefore, I would live wherever you want, location-wise.

But.... if you move, CO is awesome. And not nearly as hot as Texas.

Alexander Felice · Answer

The ability to move really easily in an effort to capitalize on economic opportunity is a kind of a new phenomenon in the large history of man. I have moved 4 times for jobs, opportunity, or economics.

What better reason to move could there be?  ;)

Steve Kordish · Answer

Hello Kevin, if you've looked at the move with all pros and cons, I'd say "why not". I made a pretty big move over seas to pursue a business/career opportunity as an independent contractor, with zero guarantees. If you and that little guy in your avatar can build a better life/career in another location and your aim/goal is to do it through the RE biz then it may or may not en up being a good idea. No guarantees but it sounds like you've already identified an opportunity, and that's what keeps us moving forward - no?
Sorry, never house hacked so cant specifically comment on that.
Hope you have success in whatever you decide to do!

Account Closed · Answer

This is a personal decision. If moving anywhere enables or enhances your ability to achieve your goals and objectives, you move. If not moving hinders your ability to achieve your goals or objectives, you move.

Kevin Wiley · Answer

Thanks everyone. I guess I should say that investment opportunities are not the only reason we want to move. We. Really really. Do like the states of Texas and Colorado and really want to explore. I feel like moving for a couple of years to invest is the best kind of sight seeing.

@andrew johnson

I've lived in Florida since age 5 actually :) my mother and sister live here but the vast majority of my family are in Kansas and Missouri. Also my wife and I take turns with the baby. I work regular hours and make alright money so she doesn't have to work. I'm convinced the DFW area offers similar mortgage and title work to what I do now if I had to get a regular job there.

Sam Shueh · Answer

You want to relocate for better opportunities. We moved to CA from KY to seek warmer weather, opportunities and real estate opportunities.  Investment in RE is not the only criterion selected.

Steve Kordish · Answer

In my post above, I mentioned I moved over seas . We moved in 2000 to Madrid when my daughter (only child) was 6 mos. old. Her NOT being in school and NOT having to give up friends etc made the decision much easier. My mom begged to differ!The older the kids get the harder it is to move, in my opinion.

Andrew Johnson · Answer

@Kevin Wiley Good theoretical question but it assumes that you can't invest where you are today.  From your post it looks like moving is a "given" and it's just about where to move for the purpose of investment.  For whatever it's worth, none of these markets are going to change your life materially for investing when you juxtapose it against a better/worse job.  So you choose Market A over Market B and get another $50 in cash-flow per month.  While that's nice when you look at cash-on-cash returns it means literally nothing is your career prospects (multiply that times two if your life works) are worse in the market with better cash-flow.  If you want to be a full-time investor I'd posit to say you shouldn't move at all.  Even if you go from $100/door to $200/door it will take you literally years to recoup the cash-flow difference once you factor in the cost to move.  And that's assuming you rent today and won't incur costs for selling your home.

Not to mention if you've lived in Clearwater since 1997 that means you were 15 when you moved there.  What does that generally mean?  Mom and/or dad are probably still around the local area.  What does that mean for you?  Free babysitting!  Unless you want to drag your child around (which I'm not saying is a bad thing in the least) to your fix-and-flips, open houses, etc. you'll be throwing down (guessing $10/hour) for the neighbor kid to make sure Kevin Jr. doesn't crawl into the pool.

Don't get me wrong, I love the theoretical question but have you looking at the pesky *actual dollar* details connected to your desire to move?  The payback period associated with that?  Odds are you're upside down in terms of a cost/benefit analysis when you look at real dollars.  Which means, to me, MOVE WHERE YOU WANT!

:-)

Kevin Wiley · Answer

Thanks everyone. My wife and I have our little 6 month old daughter so we're a little worried about stability. If I could house hack in either of those states, stability would be easier to maintain, for sure.

@Scott Trench, it's cool that you wrote back because I literally finished your book on Audible just yesterday and listened to your interview with Lance Westfield today at work :) lots of good things to say about the book!

How do you guys feel about being a new parent looking to start a new life somewhere? How do people get started in a new city?  Sorry for all the questions, but I grew up quite poor and am learning all of this as an adult myself. My wife and I are doing pretty well for ourselves nowadays.

Should I move to invest?

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