Hello,
My name Is Joshua and I am new to the Bigger Pockets community. I am interested in building passive income through rentals but I have done a couple flips to build my wealth faster. My girlfriend and I would like to move to a bigger house but I can't decide if I want to sell my current house for nice profit to invest in out-of-state rentals or just rent it out for 200$/month cash flow.
I currently live in Mesa, AZ about 30 minutes east of Phoenix. As you all may know, the real estate market here is booming. I bought my house for 97k back in 2013 and it is currently worth around 170k. I refinanced back in 2016 and took out 35k to do a flip in Las Vegas which did pretty well which left me with 60k in the bank and 120k loan. As much as I like the profits of the flip, I am more interested in passive income.
Now that the numbers are out of the way. . .
Buying a rental house here in Phoenix is not an option with how hot the market is. It is very difficult to find a deal to fit the numbers considering every 3/2 in the B class neighboorhoods are over 200k.
If I sell, I would be sitting on 100k which I could use to buy property out of state (currently looking in Memphis and Indianapolis) where decent houses are going for 80-120k. If I don't sell, I still have 60k to invest out of state but I'd have an extra $200/month.
What y'all think?
