New Investor, best option before moving?

Question

Hi!

My husband and I currently live in Michigan, but are thinking of moving to San Antonio, Texas to be closer to family.  We are currently working with a realtor in Michigan to purchase fix and flips and also duplexes to rent out.  We currently live in a fix and flip and are nearing the end of it.  We currently do not have any other properties.

My question/thought is, should we purchase a couple properties here, before we move, that we could rent out and have property managed by a company?  We would spend about $70k on each property and rent would be around $1200 a month.  Property Management company charges 6%.

Or should we wait until we move to San Antonio, Texas in the next few months and purchase rental properties/ fix and flips there.  The thing is, We know nothing about the market down there. My husband was a realtor here in Michigan and knows the market here.

Thanks in advance for your help community!!!!

Tj Hines · Answer

@Mel Kline going into uncharted territory can be very risky. Before doing so, you should familiarize with that market before diving in head first. Establishing solid boots on the ground who you can trust make take some time. But time well worth spent doing so. Take a trip there meet with other investors and have them give you their opinion on this and that. No need to fix what aint broken. If you guys have something working for you already, bleed that dry until you can feel comfortable enough investing in another market

Danny Randazzo · Answer

@Mel Kline sell it all, live where you want, and buy large multi family properties where the numbers make sense

David Serna · Answer

There are a lot of deals that I see here in San Antonio which are crushing the 1% rule. Not only that, but there is a lot of appreciation going on in certain pockets around the downtown area of SA that you can capitalize onto. Not only will you gain the cash flow for the upcoming years, but you always have the chance to cash in that appreciation down the line. Reach out to me @Mel Kline if you have some questions about the best pockets in San Antonio for your strategy. Hope you can make it down to this beautiful state

Greg Dickerson · Answer

@Mel Kline Long distance single-family rentals can be a pain. I would not recommend it.

you can research the market in Texas online and by talking to realtors and property managers in the area you are moving to.

The fundamentals are the same. It’s all about demand and location. If the rental income to purchase price does not make any sense then flipping will be your best strategy in Texas.

Jonathan Greene · Answer

Go to San Antonio, learn the market there, and find the soft spots where you can do well instead of deploying out-of-state money for a second and third investment. It's silly to buy properties in a place you know you are leaving and not intending to come back to while paying property management. I especially wouldn't buy out-of-state properties in snow states like Michigan due to the extra repairs even if the spread may seem better than San Antonio.

Saravanan Saravanan · Answer

@Mel Kline

It is generally easier to manage things when the property is within a 10 to 20-mile radius of where you live.  This is what I have learned and seen from the success/failure of fellow investors over the years.

Maybe if you developed a strong team; then there is a possibility things can be operated from far.

Brandon Kingcaid · Answer

@Mel Kline I’ve been doing a lot of research on San Antonio and it will be difficult to get that strong of a cash flow easily. But with some work that is possible, and may see better appreciation