Work in one state, house hack in another?

Question

Hi everyone, the situation:

I currently live and work in California (my job is very California specific) but with the astronomical rents eating into my earnings and the downward decline of the state, I am looking to purchase a house hack out of state. I am currently looking at Arizona because it is only one state over and I have always loved visiting there...

The only problem: I cannot work remotely. Although it is only 7 hours away, the commute time is obviously not reasonable. The AZ home will be my primary residence and I will live there whenever I’m not working/in between jobs.

And the house will be put under management from the get-go despite my living there.

I am wondering if anyone has been in this situation: Work in one state, house hack in another?

If so, how did you make it work, especially in terms of lodgings in the work state so it didn’t negate the house hacking benefits?

I’ve read Craig Curelop’s comprehensive book but it doesn’t address this specific situation. I

already have several thoughts on how to do this, but I do feel like I’m missing the silver tuna of options... Any help?

Thanks everyone!

Damaso Bautista · Answer

@Angelo Franco

Many people do this and they fly in and out every morning and every night.  Southwest has commuter flights from Arizona to LAX all the time.

I personally know a guy who has his house in Idaho and works in Anaheim, Ca.

He flies in at the beginning of his workweek and then flies home on his days off.

Austin G. · Answer

@Angelo Franco

Presuming you're in LA/SoCal? Why not buy a HH in Riverside County? The +6hr commute from LA to PHX would not be sustainable. Just my thoughts. I ended up getting laid off working in Irvine, CA and haven't looked back.

Bonnie Low · Answer

I'm not sure how the house hack will work out for you with the travel in between the two states, but I would definitely talk to your accountant before you do anything. There could be income tax implications of this. You will definitely continue to pay CA income tax because your income is generated there. But you might also end up paying AZ income tax because you list AZ as your primary residence and that is reported on your tax returns. I've seen some people do this in a non-income tax state, like NV, but I'm not sure how AZ handles it. Just another layer to think about.

Cody Harris · Answer

@Angelo Franco I had a client that moved to Boise, ID from California but still works there. As someone said above she lives here and flys to Cali for her 2 week on shift then flys back to Boise for her 2 weeks off. I don't know if you have that type of situation or not but if you look into Idaho I'd be happy to help.

Carlos Ptriawan · Answer

The easiest solution is just to rent a house with many rooms and ask for the Landlord to allow you to sublet other rooms/units. If I have a property in your area I will allow you to do that.

Colleen F. · Answer

@Damaso Bautista  I don't think many do it every morning and night. The flight alone is an hour. Maybe every weekend.  Phoenix airport is smooth but not sure how California traffic would impact the trip. Too bad there isn't a train.

Colleen F. · Answer

@Angelo Franco if by putting under management you mean you will rent the house you need to check that might not be considered owner occupied. In addition for a recent refinance we were asked for company verification that we could telecommute. You might just be better with calling it a second home. If you have a travel job it might fly.

Now for the distance. I have done this a couple of times over the years.  A commute of 4-5 hours every weekend is okay for a while but more then that it gets tedious and unmanageable. Basically someone has to live in a room or less desirable apartment.

Curious, what job do they have in California that doesn't translate to other states? or would you just have to start at the bottom rung elsewhere?

Tyler Hungerford · Answer

I'm wondering the same thing as Austin. Why not buy a house hack in California and allow yourself the opportunity to decide whether or not you want to commute. Going from Phoenix to LA is crazy pants. But traveling from OC or Riverside or San Bernardino counties to LA isn't nearly as bad.

Work in one state, house hack in another?

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