All – thanks in advance for any input.
I am in the fortunate position of having $100,000 in a money market account that I am contemplating using for a real estate investment (or several).
Briefly on me so you know where I’m coming from: I’ve recently moved overseas (to Germany) where I’ll be for the next couple of years. Because I sold my house in the US and get a decent expat package I’ve got a good amount of cash to invest. Most I have put in the market (index funds mainly), but I’ve left myself $100K to invest in real estate. My thought is to pick up a couple of rental properties, however, I have several questions.
Can I buy a property from over here? (I know I can, but is it advisable?) It would basically mean buying sight unseen and really having a trustworthy real estate agent and property manager. Can this be done?
Next is what type of rental: by that I mean speculative (less than break even per month, but high appreciating market) or one with positive cash flow from the beginning? Right now I am thinking about buying one of each: one in an appreciating area with a negative cash flow of a couple hundred and one in another area with a positive cash flow of a couple hundred. As the two will more or less wash – the impact on my cash flow will theoretically be minimal.
So, next questions: where to buy and how to find the right properties? In terms of more speculative properties, I’ve thought about Las Vegas, Naples, FL, or perhaps Hawaii. Any comments on these or other suggestions for appreciating markets?
In terms of markets where I could achieve positive cash flow from day one: I have no idea and would welcome any suggestions.
In case it helps, I do have some familiarity with: Northern Virginia, SE Michigan, and Atlanta. Also I have family in SC, so could be interested in Savannah/Hilton Head area/ Charleston.
If anybody has thoughts on the above I would truly welcome the advice. If you’d rather PM me that would be great as well.