Posted by Matt (MPD) IL on July 13, 2002 at 05:13:58:
banks,
Depending on how you are structuring your deal i.e., who the owner is, who the property manager is etc., there might be a financial advantage to doing property well outside your local neighborhood. As the property manager you could potentially collect mileage reimbursement as part of your management agreement and, if the property is located far enough away you could even collect money for meals/lodging etc., should the need arise. You’ll want to consult a competent accountant as to what you can actually take legally as far as deductions go.
On the flip side… are you comfortable with finding t/bs that will take care of the property so you don’t have to go there a few times a week to unplug toilets and replace lightbulbs? Do you have a decent car that can make the trips back and forth? How do you feel personally about your ability to keep control of a property that far away?
Is it ok to travel 3-4 hrs to do a L/o. I can probably get a few deals in a town thats 4 hrs away I dont know if I should do deals that far away though
i have been full-time and have done everything within 10 minutes of my home. never even looked at anything outside that area. i’m not that greedy, that i want to do everything, that i can get my hands on. i’m farming the area and know the values here, go to ‘open houses’ on sundays to keep up with the market, see what sells fast and what doesn’t, and people here know me. i always manage to find deals close to home. it’s up to you, whether you want to drive that far, but i believe, that would can find deals closer, if you put your mind to it.