SF or Duplex for an overseas owner?

[John N.]

I‘m in the process of buying my first SF rental on a short sale. YEAH!The quick number (based on the 1% rule of thumb) is between 1.7% - 1.9%. I’m putting the 20% down and after the mortgage, PM, tax, yadda yadda, it’s still putting money in the bank.Of course as long as it’s rented out.

Now for the twist.

I’ve been offered a fantastic (unrelated) position in Beijing to work and study.This needs to happen by Jan of 2015.I’d be there for a few years but will be able to travel back to the US once or twice a year for a couple of weeks.

Soooo . . . the problem lies with what I have currently.I bought a short sale back in Oct 2012 that I am currently living in and rehabbing.I bought it for half of what it’s market value is (currently) and my plan was to sell it on the 2 year anniversary (Oct 2014), run with the gains to buy a duplex to be O/O.But then this lifetime opportunity came up.Maybe Paula Pant can chime in on this since she is also a world traveler too.

BTW, China is nothing new to me since I have already been there 5 times within the last 6 years and have always dreamed that someday I can just go and stay longer.

My real question is, do I still buy that duplex or buy a second SF in cash with the gains or do I take the risk to buy the duplex, live in it for a couple of months before taking off.I believe having 3 rentals and only 2 mortgages, there’s enough wiggle room to not stress out if one should stay vacant for a few months.Or just have 2 rentals and only one mortgage?

I do plan on returning back to the US after a few years so having 3 rentals I could time it right with one being empty to have a place to live.

I’ve already started to build a team.My CPA (who I have used for my taxes for many years now) already works with other investors that are currently overseas and even recommended the PM which she also works with on her own properties.I’ve met him a couple of times to hash out small details and he emails a status report every month.He also has his “own” team of people, like plumbers and such.The best part is, he only charges 10% on the rent collected, not a fee per month even if it’s empty.

If there are any questions to help fill in the blanks that I might have missed, you can fire away.

Thanks