Relocate and House-Hack, or Invest Long Distance?

[Thomas O'Donnell]

So I'm currently in a dilemma. I have about $13,000 that I can use for my first rental property. I have been strongly considering moving to a cheaper more affordable market and house-hacking (I currently live in the CA Bay Area and do not work in tech). I had previously chose Columbus, OH and was planning to move and use a FHA to get into a duplex or a SFH. However, moving expenses would be about $3,000-$4,000 which would cut into the cash that I have, and I would be making less income after the move. I wish I could house-hack in my own market but it is way too expensive.

Very recently I have been considering the idea of staying here, where I currently live with my parents rent free, and getting a new higher paying job (if I can). Then, using my cash I have saved and new income to put 20% down on investment properties in cheaper markets that might need to be fix and flips or fix and holds. If I was to do this, I would probably need to invest where properties are below $75k and I am able to add value through a rehab (with possible use of a HML).

So I guess the question is, should I move now, eat the moving costs, make less money and house-hack whatever I can…. Or should I stay here, up my income, and try to invest long distance with flips or fix and holds (will be a lot more difficult to do).

After a flip or 2, I feel I could potentially have enough to move to a market that I would want to stay in with more money. I really want to get my first property and never look back as I start my REI career. I am just curious if any of you can share some insight on a similar dilemma or maybe have some advice. Thank you all!

[Johann Martinez]

Wow, I am legit in the same situation as you. I have around 15k saved and expect to have 30k saved up by the end of the year. I am also looking into Ohio to invest for my first deal. I have been wondering how I would get around the cash situation; as you said, either house hack the property or make a long-distance investment in Ohio. I have no problem making a long-distance investment, but I would definitely visit the market for a couple of months and create a team to manage the property. Also, before making any decision, you should question yourself if you have a solid business plan once you get there and if you have found the right people to help you get the seal the deal since you would be on a very tight budget and have a limited time frame before you run dry. It sounds like we could potentially help each other out if you're interested.