Author Topic: Out of State Investing Advice (Read 3212 times)

on: September 08, 2012, 01:09:36 PM

I was wondering if anyone has any advice on out of state investing. I live in eugene, or and the prices around here are too high for me and the numbers generally don't look too good. It seems pretty tough to make a property cashflow. I am looking to buy a sub $100,000 rental out of state. If I add a partner, I could swing a bigger deal, but by myself, that would be what I could afford to start out with. I am going to a local REI meeting on tuesday to talk to local investors and see if maybe I can find a mentor. But anyways, I was just wondering if anyone has any advice or some good books on out of state investing for a beginner who has never bought real estate before.

Another question I had.

Do you think that it would be a good idea to take out my roth ira to use as a downpayment on an investment house?

I'm 20 years old and currently make 24k a year. I don't really see my salary going up much higher then $30,000 / yr any time in the near future. I work as a farm manager and love what I do. I have thought about pursuing a degree in a higher paying field, but I don't think that I would be happy. I have decided, at least for now, that I would rather enjoy my work and not retire as early. My plan is to continue to enjoy my work as a farm manager and to invest in buy and hold real estate in my free time to build wealth.My current monthly expenses are about $750 / month, leaving me with about $1250 left over to invest. Over the past year, I have contributed 10k to a roth ira with vanguard, and have accumulated 10k in an emergency/house fund.

An idea that I had was to use my roth as a downpayment. Obviously I would need to save some more so that I have some cash reserves before I purchase anything, but if I were to use my roth, it is that much sooner I could purchase a house and take advantage of these low interest rates. Should I do that, or would I be better off leaving the roth alone and just redirect my contributions into my housing fund. It would take longer for me to be able to purchase something, but my roth will still be funded and I wouldn't lose those 2 years that I have funded it.

Another option that I am exploring is to partner with my father where he provides the money and I provide the work. I would like to do this along with purchasing something myself.

Sorry for the all over the place post.