Has anyone ever sold their portfolio in one state and then relocated to a new state buy properties? How does that work? Is it a gradual shift meaning start selling in one location and as rentals sell begin buying in the new state you're relocating to? Is it a sell the whole portfolio in one fell swoop move and begin buying again?

I've never done this, but I would have to ask, why bother?

If I had to sell everything now and move, I doubt I would be back into the rental aspect of this business given the potential pitfalls alone. I'd probably just flip Properties.

You would have to learn an entirely new market. Housing rates, what's a good deal there, what isn't. What neighborhoods are good, what are the ghettos. Typical desirable tenants for the area. What lawyers are good to use, what lawyers to stay away from. What contractors are trustworthy and who the schisters are.

How to work the inspectors and codes guys to meet your needs.

What are the new codes and inspection requirements of this new and foreign land. And on and on and on.

Not to mention, you have to UNLEARN all the location specific stuff you've came to know over the years. The game you've mastered is GONE.

Yes, I've done this several times. Left Calif. when I sold my company and retired. Sold all The places and moved to The islands Latitude 24 and all that. Got there 350 years too late. Had a great time there for 6 years then moved again to The north. The thing I've found is there's opportunities everywhere. You just have to adapt.

The stuff NE said applies but new things can be learned. Just takes time. It might be advantageous to partner with a local for a while to learn the local details. Start small. Make the mistakes on small deals so you don't lose it all, then when you know who and what and where and how locally, push down on the gas. In fact, tromp it to the floor.

For the LL that asked why, I have 3 words why:

Mickie,

And why not? You are smart. You’ll do fine. But very true that markets are very different.

Learn about 1031 exchanges to avoid the tax bite.

BRAD

PS

I’d LOVE to sell all and 1031 it into a high class apt complex. One thing to manage.

Then I’d buy a golf cart to drive around my little empire!

Puerto Rico. Income tax is 4%.

I have not done that but lost out on a 10 or 12 unit building because they were bundling it with one or two other buildings that were beat up and we had no interest in. I think they were cashing out and didn’t want to be stuck with the beat up one. We made a good offer but someone else came along willing to take the whole bundle.

I have not done that but lost out on a 10 or 12 unit building because they were bundling it with one or two other buildings that were beat up and we had no interest in. I think they were cashing out and didn’t want to be stuck with the beat up one. We made a good offer but someone else came along willing to take the whole bundle.

RENTS DUE (MA),

If you're thinking of investing out of the country, you might consider either Panama or Japan.

The cultures there are quite different as well as the way rents are done. A little research will show you some interesting differences.

I've been considering these places myself, especially as some places are becoming, shall we say, unfriendly to landlords.

It took us four years to do our relocation to AZ. We first invested in a couple of houses, then a 12 and 4 plex. We actually started out in Vegas, but I was stretched too thin.

Mickie, RE in NC is expensive...as I guess it is anywhere these days, but extra-high here because we are a Net-positive growth state (more people moving here than leaving.) Supply & Demand.

Charlotte, Raleigh, Winston-Salem: all thriving.

I've just done it. I just closed the very last Oregon property 2 weeks ago.

1031 properties, plus cash out the owner occupied. I want to cut back so I am doing 1031 on lower rent properties and combining 2 into one very nice property to reduce both the number of doors and tenants issues.

We went through this a couple of years ago. We had a growing herd of cash cows, and then DH got a job transfer to Ohio. I didn't want to sell the herd, because we had a great team in place and it was a great market. So we kept them.

Not Japan. The housing market is different. Houses beyond a certain age are usually torn down, maybe 30 yrs? They actually tear them down and build new. I think there's a property tax law or something related that I read somewhere. After X years of age, they are assessed a penalty of some sort. Lots of houses are just abandoned to avoid the tax.

When I retired from the service I relocated my assets to Pa. It was hard to make 1031 happen as the market place I selected was a smaller one and the SoCal prices had heavily inflated themselves.

Wow, I have not been on the Q&A for years. I learned so much from Jeffrey and the landlords. Reached financial independence a few years ago from doing out of state investing.

We have done allot of Long Distance Landlording.

You need an ethical agent with experience in taking clients out of state who can make a plan for you. In addition, you need a sharp local agent to work with your buyer's agent who can tell you WHERE to buy.

We sold most of our portfolio to one investor 15 years ago and bought a large multi in AZ for cash flow and a portfolio of SFR's and a duplex in another state for appreciation. Its kind of like stocks and bonds....get some of both...multis and SFR's.

Someone I met through the Mr. LL network was the buying agent and now is the selling agent...we are exiting in a rising market.

Our other long distance experience was buying a well located retirement on the New England Seacoast. It has turned into an excellent investment but not without going thru some tough down markets. As per Robin, get a good team. Buy where you like to travel or have family. You can write off some of the expenses to the properties. Ask your CPA. I would recommend newer properties as they are easier than supervising rehabs from out of town. But it can be done if you have a rehab team or a property manager with good connections to contractors. I have design skills so I enjoy sending plans, samples etc to the PM who hires a contractor to implement. If you do something "cool" and different, there is always someone who will pay allot for luxury. The more property you own in another state the better attention you will get from a property manager. It's even better if you can buy big enough to have onsite manager and maintenance. Then there are less worries and hassles.... someone is one site. Things hum along, you talk to the team once a week and get your check consistently every month. But remember, I'm talking about what its like after 15 years of work. I had a vision of what I wanted and I was willing to work for it. It wasn't always easy but year by year things come together if you stick with your plan. Exiting a portfolio out of one state to another is a challenge...all the negotiations, and escrow games but you can do all on line with text e-mail and electronic signatures. Mickie, If you feel the impulse to be an out of state landlord and like rollarcoaster rides, pick somewhere you like to visit or have family/friends, take a deep breath and pull the trigger.