Announcement

Collapse
No announcement yet.

How far is too far for a rental property?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • How far is too far for a rental property?

    The housing market in my area like many others around the country is very hot. We've been interested in buying a rental property for a little while, but can't find anything local that seems like a good choice for us. There are some towns within 30-60 min drive that are less desirable to live, but have inventory in a price range we are comfortable with. How far away is too far to own a rental property?

  • #2
    Ours is 1100 mi. Though this is not advice.

    Comment


    • #3
      That does not seem like an unreasonable distance at all. It's within a typical commute range for many people. It seems the more important issue is if properties that you can afford in these less desirable areas will provide a decent ROI.

      Comment


      • #4
        Originally posted by FunkDoc83 View Post
        The housing market in my area like many others around the country is very hot. We've been interested in buying a rental property for a little while, but can't find anything local that seems like a good choice for us. There are some towns within 30-60 min drive that are less desirable to live, but have inventory in a price range we are comfortable with. How far away is too far to own a rental property?
        It depends: do you want to actively take care of the property or do you want to hire someone and be passive? if active, I, personally wouldn't want to drive more than 30-60 minutes max. the longer the distance, the more you drive, the less your time is worth as you need to factor in travel time and work time into your overhead and profit. if passive investor, there is no max distance as you are hiring someone to do the maintenance and upkeep so it could theoretically be half way around the world.

        Comment


        • #5
          Originally posted by Bmac View Post
          That does not seem like an unreasonable distance at all. It's within a typical commute range for many people. It seems the more important issue is if properties that you can afford in these less desirable areas will provide a decent ROI.
          We are considering whether we want to pay for one house in cash, or put 50% down on each of two properties and have a loan. I've become pretty debt averse, and the idea of having another loan to pay on is less than appealing. I feel like we would be cash flow positive that way, but the rents will be lower in the area we are considering.

          Comment

          Working...
          X