BiggerPockets

Hello to all the Bigger Pockets Members,

I wanted to pose a question to the " Seasoned Real Estate Investing Pros" as to where you feel are the best places to invest in 2008 and why?

After this thread gets a good number of post (say 10+) I will then reveal my Top 10 Picks of where I am buying, and my " Crystal Ball View" of what appreciation I expect for that area.

So whos first?

I invest only in my local area, Texas panhandle, and its been very steady over the last 5 years. I am obviously personally biased, but I can find 15%+ cap rates here fairly easily (I just bought a 6 plex at a 19%) and appreciation holds at about 3% a year. Its nice and steady with a solid economy.

I only invest at home, adnd I think my area is good right now. Sellers are spooked, so willing to look at offers, and you sure can't beat the interest rates. There is also a lot of pent up demand as buyers wait to see what happens to prices.

People are still moving in and the baby boomers want to retire here. Add in a serious limit to available building land and it adds up good.

I did see an article in a ski magazine about the 10 best ski resorts to invest in, and, superficially at least, they sure looked like a good place to put some money. The list included new resorts and resorts that were expanding.

#1 has got to be Indianapolis at the moment.

It is very affordable, a great rental market and has plenty of investment deals to choose from!

Indianapolis does not appreciate very well, but the cash flow allows us to invest in other markets where we are looking for future appreciation as the market plays itself out. I look at Indianapolis as a bond market, safe and secure.

Wholesale, short sale, bank owned and Hud auctions make for plenty of opportunity, and we are taking full advantage of it.

If I was going to start new right now, WHICH I AM NOT, but I would look for mid-sized markets that have a backbone of a large employer or two that is set for growth and stability in the next few years.

I think one such company is Catepillar. All the emerging companies are expanding and CAT makes the large equipment that is needed to build roadways, buildings, etc.

Their HQ is in Peoria, IL, so I would think that is an amazing market there. Some of the employees also live not far from Peoria in Springfield, IL and to me those are solid investment areas.

I guess I'm a little scared to go " outside of the box" , but I have tended to only stick to my local area of Harrisburg also....I don't think the bubble really even hit here too hard, except in some very specific areas.....I think this is a very stable market place with decent appreciation (not huge - but then again not negative...).....

I think I'll stick close to home, at least for now....Thanks - Ken

Im a large wholesaler here in southeast Michigan, and Im buying properties for 10 cents on the dollar all day every day. Now there is the occassional property I get for pennies on the dollar but I never/refuse to buy anything in Detroit for more than 10 cents on the dollar. Everyone sees and reads about Detroit Its an area to think about, your money can go a lot farther here with the way the market is. Where theres gloom, theres money to be made!!!!

Dan Evanski

I hope you're right...

I have three houses in Jackson that I've purchased in the last 6 months. So far all have delivered cash back at closing with positive cash flow.

I keep getting emails about buying in the GO Zone with cash back at close and cash flow for the first 2 years because they're pre leased. I looked into it more and I couldn't find rental prices to support what they were saying after that 2 year period. Which would mean with the financing they were providing, it would be negative. Care to elaborate on your deal and how it's working out?

Looks like we're at the 15+ mark. List still coming? :D

Hey Shaggster,

When you say you are

buying properties for 10 cents on the dollar all day every day

what do you really mean? Does this mean that you have an unlimited supply of houses you are buying and rehabbing for $5k total and then selling for $50k or $10k and then selling for $100k? I understand you can get the properties cheap in Michigan but finding the buyers is another thing. Can you elaborate, perhaps with some examples? Thanks.