Buying remote for yield vs staying in tier 1 market
Following up on my last post where I got some great feedback of what to do with my self managed portfolio of small multis in the Northeast, I'm back for more advice.
I'm looking to buy a $2M–$3M property with a 1031 exchange and I’m considering ditch the Northeast for better numbers in the Midwest/South.
My concern is, locally, I can visit the property and keep tabs to make sure it's in good working order. Remotely, especially in smaller towns, I’m at the mercy of a PM I’ve only met a few times in a town with maybe one reliable HVAC guy.
Am I trading "known" headaches (taxes/age) for "lethal" ones (lack of oversight/small-town stagnation)? To those who moved capital long-distance: at what unit count/price point did you feel comfortable that the property was "large enough" to be managed professionally without you being there? I look at a lot of properties listed and it's hard to see it not being a struggle. I would have thought $2-3m would get your enough property to have safe scale but maybe I was being too optimistic.