Short Term Rental while Living Abroad?

[Caleb Wagner]

Hello!

I would appreciate the community's advice on my opportunity.

My family and I are moving abroad for a 2.5 year work assignment but are slated to return to the same area upon the conclusion of my assignment. During my assignment, our housing costs are covered by my employer. We currently are renters but planned to buy a single-family residence (SFR) when we return.

So here's the situation. As of this week, we are considering buying a SFR, before we leave and renting it out while abroad. We have savings for 20% down on the properties we are considering (plus emergency fund, etc.). The pros would be:

- Ability to choose our housing in-person instead of remotely

- Tenants helping with loan paydown

- Potential cash flow and tax advantages

- Investing our down-payment instead of it collecting dust in our high interest savings account

Cons/unknowns:

- Would have to pay a property manager since living abroad

- Real estate market in our area seems inflated; a crash could negate any returns

- Not much time to rehab

- Would have to "evict" tenant when we return

So what do you think? Is it worthwhile to purchase a home before moving abroad, rent it out, then move into it ourselves in 2.5 years?

Any advice is greatly appreciated! Thanks!