How to start in a state with a budget crisis (CT) should i move?

[Ryan Plesz]

Question for BP Members about what I should Do Now, is my state (CT) dying?

Hi BP crew! I'm trying to get started in long term rentals and looking for some opinions, since I live in a declining state?

I’ll start with my dilemma, then give more details of my situation. I apologize for the length of the post. 

I currently live in central CT. Daily we have news of how bad the state budget problems are and I am leery of buying in a state that is losing jobs, loosing population and who’s future is not bright. I have done research and the situation is grim for the state. If you would like to read more I’ve included a link to CTMirror. https://ctmirror.org/2017/09/21/gop-dems-both-lack-solution-to-cts-cycle-of-budget-deficits/ We have such a ballooning pension problem that I fear the situation may escalate and I could be holding rental property that has increasing vacancy rates due to decreased demand, increasing property taxes to pay for CT’s budget problems and very little or negative appreciation. Every book I read states to buy in areas that have a diverse employment base (not really CT), employment growth (not CT), population growth (not CT). Each day I talk with more and more people who are leaving CT for more tax friendly States. I like the area but we do have relatives in Jacksonville FL and it may be possible for me to move my current job to Jacksonville and my Parents may be interested in moving to this area. I have visited Jacksonville and like the area and like other areas of FL and GA. My other option is to buy rental in Eastern MA (I have started to go to Meetups in that area and it seems much more stable than CT), or RI as both areas are within a 1 hr drive. For me to start in CT would be easy as I have a lot of current contacts for contractors, have my CT real estate license and know the area and my parents currently reside here. My Parents did say they are considering moving south.

My Situation: I have a full-time job (finance)…make around 50k a year and must get out of the Corporate world, I would be amazed if I can make it another 6 months but I will try for the purpose of W2 income for loan purposes. I have no kids, no debt. 80k in cash to invest, 35k in Roth and 200k in 401k. I also have financing options through my parents whom I can either barrow money or can go into a partnership with. I have done a fix and flip in the past with my father and it worked out well and now he is looking for ventures on a larger scale like apartments or mobile home parks, but can start on smaller multi families….combined we could do 800k cash with higher financing. My parents have been in the apartment business on a smaller scale and I would like to do something where we could work together. I have been educating myself with tons of blogs, and books. Considering taking 1 or 2 seminars, like the mobile home academy course or maybe Jake and Gino’s course on multi investing, nothing over $700, but just something to get me motivated enough in myself so I can take the leap.

My Goal:

In 5yr to have 8 to 10k / month in passive income (It would not be completely passive as I do not mind working 10-20 hours a week for this income but I will try to get systems in place to bring it down to 5 to 10 hrs a week. I would still be active in real estate looking for deals to increase my income because I enjoy the search, crunching #’s and even the physical labor part. I would look for C+ to B+ long term rentals, primarily multi-family. I could start with 3 to 4 plex’s and mover to apartment or there may be some mobile home parks in the area.

I appreciate any feedback.

Thank you VERY much!

Ryan