I like my investment properties to be in the city that I live in. Where I can keep better track of them and manage them hands on. Also by investing where you live, people know you and often refer both tenants and deals your way. Investing closeby you also can get the pulse of the market better.
Saying all that, for the right deal I would go maybe 20 to 30 minutes out. But that’s it.
A couple of years ago I bought a HUD for rehab that was an hour away. Didn’t go up to the house much to check the progress of the work and then when done got lazy and had a realtor sell it for me. More money out of my pocket.
Shortly I should be having a good chunk of $$$ coming from a sale of a property. I’d like to re-invest in other property(s) with 1031 exchange(s), but would like to have the new property(s) to be as close to home as possible. I work full-time, have 2 small kids, and don’t want to have a lot of my time wasted as travel time going to and from my properties. I realize I’m limiting myself by doing this. Even still, how far away is too far to have a rental property?
I live in a suburb of Milwaukee, so there should be enough properties around to choose from without having to go too far(I hope).
Re: How far is too far for property to be? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on April 27, 2000 at 11:24:31:
I agree with David that its personal. Personally… I guess I am somewhere between John and Phil. I own nothing in my own town. I do want to be able to visit the proeprties when I feel I need or want to. So I prefer them witin an hour plane ride, no changeovers. That is an easy daytrip in and out.
I totally agree with John about the management though. Onsite is critical. And I do a ton of management by phone, fax and mail…