BiggerPockets

There are a lot of posts on here about what area to buy in. Many know that my faves are TX and certain parts of FL. I see lots of chatter on the same 2 states from investors that aren't area bound.
So,,, Lets' hear it. Both from actual investors, and prospective investors.
Texas? Why?
Florida? Why?

If you have a different location you feel REALLY good about, tell us about it and WHY you feel good. I think this would be a single thread where all the input could be batched together for consideration. One stop shopping for where to invest and why. OK, state your case for your faves. Rich

Great question Rich. In Houston, you can buy, on average, Class B-/C+ apartments for $20k/door with $600-$700 rents. The math works.

PLUS, apartment renters in this strata in Houston, (can't speak for other TX cities) IN GENERAL would rather spend their money NOT on a SFR, but on a NEW CAR, CLOTHES, etc. to keep up with Jones', when in fact they are entrenching themselves to become perpetual renters. Great for the owners, sad for the renters frankly.

Said plainly, you'll always have a viable tenant pool because of this level of conspicous consumption.

R Sean

I've met with Jon K- He has a great niche. He is buying cash flow with a kicker. His properties he buys are mobile homes on acreage. The rent is high, and I suggested that he try and split the property into 2 or more parcels and he'd still get the same rent.

RSEAN- if you think a post or title is good vote for it and keep it in peoples' minds. Thanks. Rich heading to Spain

This thread has gooten too much to one area. Doesn't ANYONE like a different spot than Texas? Come on. Rich

Rich, if you had asked this question a month ago, I would have recommended Elk Grove, near Sacramento. I spent countless hours analyzing economic data, home prices relative to average household incomes, crime stats from the FBI, school quality, etc. for the entire northern California region before identifyinf Elk Grove as underpriced.

And then I saw BP and you guys posting about values in TX. I will go into serious depression if I buy in northern California after hearing what Jon K had to say about his D/FW investments. Vikram

Rich, can you walk me through the numbers on the home you are referring to? If I understood you correctly, the home costs $91K and the rent is about $1,000 per month. So, applying the 50% rule, it works out to $6,000 per year in NOI and if I were to use a 8% cap rate, the value works out to around $75,000.

So, in order for this to work, we will need to expect significant property appreciation over the next few years, right? Are these homes in a nice area with good schools, low crime, and reasonably affluent people? I would guess that the median household income in the neighborhood should be at least $70,000 for me to expect significant price appreciation there.

Rich,

While you´re asking for, OHIO (Akron, Cincinnati, Cleveland, Columbus, Dayton, Mansfield, Toledo, Sandusky, Youngstown and so on)!!
Why? - Amazing deals with crazy houses for cheapest money.
Example: The 60 unit complex in N Ohio and in Cincinnati a 12 unit house with 5x 1bed, 4x 2 bed and 3x 3 bed for only $85k ask, needs rehab about $100k (says the broker) and has an ARV of nearly $400k. There are many more houses with potential and there are many people they will leave the slumlord houses and go to better units for reasonable terms. Steve Sparks can tell you a thing or two about it.

-Uwe

Marc,

No, you not blind :). But Rich ask for our special area and why.
Now you carried Indiana into play. This is what Rich has wanted.

-Uwe