Has Dave covered buying real estate in other locations?
Here's my scenario and thoughts. Not sure if this has been covered by Dave before. I've been going through old videos but haven't seen this yet.
I live in a HCOL area but dont make a HCOL salary. Have a large down payment sitting in a money market account getting 3.5%. I contribute 15% to retirement and have no debt. Biggest issue is that after retirement contributions, child support, and bills I have a margin that isnt enough to pay the monthly cost of owning a home in this area (which I can't move away from). I will also likely inherit a small condo so I don't actually need to buy a big house here,
I want to invest in real estate but basically cant afford it here. Here's the options that I've found:
Invest in a turn-key property somewhere in the south, like georgia or the carolinas. There are several management companies that I can buy though fully in cash, and they'd fill and manage. Low cash flow due to fees, but it would be debt free if i pay in full upfront.
Invest in a real estate portfolio firm. They find, buy, and manage properties for 5-8 years before turnover. They use the contributions of the portfolio holders as the fundraisers for these properties. Then the portfolio holders get a % of the gathered monthly rent as well as part of the sale proceeds when the property is flipped. Rinse and repeat.
Just skip the physical real estate and invest all this money into REITs and other real estate ETFs to get the monthly dividends instead of rent.
Side note - I already have my work retirement funds going into growth focused etfs. This saved cash has already been ear marked in my mind specifically for real estate so I can diversify.