Texas or Washington - MFR Buy + Hold

[Chris Harrington]

Hello,

I recently accepted a remote sales role and am planning to relocate out of Massachusetts to either Texas or Washington (based on a number of factors/analysis I did on the market, economy, taxes, etc). 

Given that I can work anywhere in the states, and being in a high-paying sales role, I'm planning to move to Texas or Washington to remove income taxes and begin building out a real-estate portfolio of Multi-Family Residential units. My goal is to buy and hold and build up a portfolio over the next 5 years. Ideally, $100/mo/unit in positive cash flow after all expenses. 

With that said, what state looks best in the Real Estate world? What areas within each state looks best at this point? I've been analyzing areas like Spokane and Tacoma WA, and areas like Dallas, Austin, Houston, and San Antonio. There seems to be pros and cons to each. I've been having a difficult time (at first glance) finding a lot of MFR's in WA, and Texas looks to have more options with cheaper property values. I'd rather not spend more than $300K on a first property just so I can get some experience under my belt.

Any recommendations?

[Tim S.]

I'd base it on where you would prefer to live, not the RE market.  You can invest anywhere, but you have to actually live where you choose to live.  Some places are cheap for a reason, because no one wants to live there. 

On the RE question I'd probably choose TX vs. WA, it's much more investor/landlord friendly.   I'm saying that as an investor in WA.  Just comparing the macro factors.  If I found a great deal in WA, I wouldn't pass it up just because it's in WA.