Author Topic: Rentals in multiple cities  (Read 1452 times)

sbryant31

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Rentals in multiple cities
« on: April 05, 2015, 11:35:57 AM »
This question has been plaguing me for months. Do I buy or do I wait? Will I be able to handle having a group of rentals in one city, and a group of rentals in another city? Or will this be a burden?

I have a well paying job in a very inexpensive college town, with very low priced housing and a large student population, so the numbers work. I've found many multifamilies that obey the 1% rule and I'm ready to make a couple of offers. But one thing is stopping me:

I don't see myself here in five years.

I plan on moving across the country to a more expensive city for lifestyle reasons (hint: rock climbing and snowboarding). But I can't move right now due to an incredible opportunity to make a lot of money at my current job. So the question is:

Do I spend the next 2-4 years landlording here, acquiring a couple of properties, putting in sweat equity on the weekends to create some profitable rentals, and then get them professionally managed when I move? If I can get a good cash flow and a good deal on these properties, should anything stop me from buying 3-4 properties in this town?

Does anyone here have experience with "splitting the empire", so to speak? I know it's not ideal, but I don't want to wait another 2-4 years to begin working with real estate.

Another Reader

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Re: Rentals in multiple cities
« Reply #1 on: April 05, 2015, 11:43:28 AM »
Multi-families have higher expenses and need to be closer to 2 percent to be successful, especially in low to moderate income areas. With a more mobile, lower income population that includes students, your vacancy and collection losses will be higher and you have common areas to maintain.

I would have no qualms acquiring rentals that would be profitable when I bought them and whose profitability would increase with some sweat equity.  If you do a good job with the work and follow good landlord practices, your net income will go up.  Should you move out of the area, you can hire management or sell and recoup your investment and more because of the demonstrated earnings of the properties.

arebelspy

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Re: Rentals in multiple cities
« Reply #2 on: April 05, 2015, 03:06:56 PM »

Multi-families have higher expenses and need to be closer to 2 percent to be successful, especially in low to moderate income areas. With a more mobile, lower income population that includes students, your vacancy and collection losses will be higher and you have common areas to maintain.

I would have no qualms acquiring rentals that would be profitable when I bought them and whose profitability would increase with some sweat equity.  If you do a good job with the work and follow good landlord practices, your net income will go up.  Should you move out of the area, you can hire management or sell and recoup your investment and more because of the demonstrated earnings of the properties.

100% agree with both paragraphs.

This post is not adding anything, but just wanted to chime in with an "I agree" for some small confirmation.
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