[quote=Ren] . . . It isn’t about appreciation or selling – it’s about having the available income and cash to put a lot down on a lot of property (we do), cash flowing well beyond PITI, maintenance, vacancies, and management (if applicable), being smart about what, where, and when we buy, being smart about renting those properties, and living below our means. Selling property in 30 years won’t make a student loan or car payment when it’s needed, but cash flow will, if the numbers make sense before we buy. We also have no intention of buying when we move back to the coast. . . .[/quote]
Ren, you were talking about purchasing several investment properties with mortgages to eventually pay off your residence, vehicles, children’s education and retirement. Since you will supposedly never sell them, you won’t be able to get the kind of cash flow you’re thinking of to do all of these things, IMHO. And if you DO sell properties in those areas you mentioned even after holding them for 15+ years, you may or may not make a profit. A typical profit from sale of residential RE in those states isn’t what it is here …. and buying in “better” areas is more expensive. And you won’t be able to buy as many properties in “better areas” (to attract your “better tenant”) as you could in mostly rental areas.
Of course, you “know all this” and have already figured everything out.
There are GOOD REASONS why residential RE is so much cheaper to buy and also rent in AZ, FL and even RIV County than it is in SD County. If one is thinking investing in rental properties out of state and doesn’t understand the fundamental reasons why the RE sales/rental markets are as they are in those states, then they don’t understand these markets well enough to invest in them, IMHO.
I’m not saying that’s you. Only that investing in distant rental RE can be perilous for someone simultaneously trying to raise a family and hold down a FT job 500 or 3000 miles away from it. It’s better suited to folks who have deep pockets, less daily responsibilities and perhaps be self-employed or retired so they could easily make an impromptu trip to the locale if needed.
I also don’t think it’s that easy for an inexperienced investor (even with good credit) to get repeated non-owner occupied mortgages … at acceptable terms, anyway.
I’ve never had any problems here telling it like it is. If you personally don’t wish to read my posts, feel free to “ignore me.” It won’t bother me a bit.
