Updated 12 months ago on . Most recent reply
Local or out of state investing
I have created two posts in the past day or so and they both are providing mixed information.
the problem being in my market (Brooklyn ny) the lowest house is 800k and rent is generally 2000-3500 (medium)
the second problem is I am a college graduate with a part time job and low income so getting a 800k mortgage is almost a no.
so if I look at out of state the pricing is generally what I have saved up and I can just buy it with a low down payment but it's not near by and I can't manage it or do I stay local able to manager it but pretty much not able to do anything until I have some cash available?
my next strategy would be house hacking but even then my market seems too high and I would still need to get approved for a loan
Most Popular Reply
Hey Chaim — you’re asking a great question, and one that a lot of people face starting out.
My general rule is: always invest locally unless you absolutely can’t make it work based on your personal goals. I say that as someone who invests and makes a living helping others invest out of state. Local investing gives you hands-on experience, more control, and typically a faster learning curve.
That said, I also totally get your situation. If a house hack is still on the table, I’d strongly consider trying to pull that off. It’s one of the most powerful wealth-building moves for someone starting out. You get to live in the property, lower your living expenses, and build equity—all while learning the ropes of being a landlord. I really wish I had the foresight to do that when I was younger.
If even house hacking isn’t feasible in your area due to pricing or lending constraints, then yes—out-of-state can be a smart move. But it’s not passive. You’ll want to be very intentional about your market selection, build a great team on the ground, and get super clear on your investment goals.