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Updated almost 5 years ago,

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9
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Andrew Mok
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9
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Should I buy in Atlanta or current location (CA) duplex?

Andrew Mok
Posted

Hello,

I`m originally from Atlanta (suburb in Duluth GA), and obviously the cost of entry is much lower there vs where I currently live (Long Beach CA). My wife and I have about $25000 to spend. 

Should I stretch and get a FHA loan here in Southern California for a duplex (probably going to be $500k+) so that when we rent out the other unit we can save on the mortgage to save for another property? Or, should I buy in Atlanta first (~$150k townhome) and rent it out?

Obviously it's very hard to get returns from both rent and home value going up with a small budget like ours, but I'm trying to determine which is the better first step to take. My dad is a real estate broker in Atlanta so I have some family member leverage there, but I assume I`ll still have to hire property manager as he'll be busy with his full time job. 

Atlanta townhome would be risk free (almost) for us, as we can cover the cost should the property not be rented out for some time, whereas if the duplex here in Southern California would be really hard to afford if one of us lost a job and the property was not renting. However, I feel like the home value will go up higher faster here vs Atlanta. 

My dad was advising us to wait a bit as housing prices are pretty inflated as of now, so our target time would be in about 1-2 years, or feel out the economy as the recession seems to be right around the corner.. 

My end goal would be to have multiple rental properties that generate enough passive income so that I wouldn't have to work as much/if at all. 


Thank you. 

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