Appreciation and Long Term Investing Illinois vs Washington state

[John Powers]

      Looking to buy a single family home or duplex in north central Illinois or in Washington state. Advantages to Illinois include more affordable home values, lower mortgage payments, cheaper cost of living, closer to family/friends. 

      I make 30-40k a year from seasonal jobs as a restaurant server. 2020 has been a bad year for the hospitality industry, but I have hope that by the summer and next fall the industry will start to recover. If it doesn't I will try to find a job where I an make at least $20 an hour. I have 20k set aside for the downpayment, fees, and basic repairs and cosmetic work. 750 credit score.

      My big decision is where to buy my first property? Should I buy in Illinois where my monthly payment will be lower, and I can house hack a single family or duplex? Or should I buy a single family in Washington state, where I will be working and want to live on a more permanent basis? It also looks like the long term appreciation might be more in than in central Illinois. 

      What do you all think?

Thanks

John

[Nik Moushon]

Originally posted by @John Powers:

      Looking to buy a single family home or duplex in north central Illinois or in Washington state. Advantages to Illinois include more affordable home values, lower mortgage payments, cheaper cost of living, closer to family/friends. 

      I make 30-40k a year from seasonal jobs as a restaurant server. 2020 has been a bad year for the hospitality industry, but I have hope that by the summer and next fall the industry will start to recover. If it doesn't I will try to find a job where I an make at least $20 an hour. I have 20k set aside for the downpayment, fees, and basic repairs and cosmetic work. 750 credit score.

      My big decision is where to buy my first property? Should I buy in Illinois where my monthly payment will be lower, and I can house hack a single family or duplex? Or should I buy a single family in Washington state, where I will be working and want to live on a more permanent basis? It also looks like the long term appreciation might be more in than in central Illinois. 

      What do you all think?

Thanks

John

 John, I grew up and lived in Peoria IL for over 20 years. I currently live in Wenatchee WA. I will never be moving back to IL and will never own property in IL. The state gov has constantly raised property taxes and other income taxes year after year and shows no signs of stopping. The state has lost more people, than gained, for 7 years straight now. It lost a net of 80k people this past year alone. Until the government gets its act together and the debt gets under control it is not as friendly as other midwest states. Yes, IL has really cheap property but so does other mid west states like Ohio or Michigan. If you are going to be living in WA and want to own property in the midwest....just pick another midwest state. 

As your first rental property though I would advise against renting from out of state, especially half way across the country. If you are set on living in WA then I would focus on finding one there. The key for WA state though is location. Price can vary A LOT. From pricey that looks somewhat similar to the midwest to prices that are stereotypical of what you would think west coast prices would be. The trend is that the east side of the mountains is cheaper than the west, though be aware that that is not firm and you can find small pockets that go the opposite of that trend. 

Let me know if you have any questions about either state. This is obviously my personal opinion and others could have their own too.