Hi, my name is Chris and I will be buying my first investment property this year. I’m doing a ton of research (while trying to avoid paralysis by analysis) to help insure my first investment goes well. I live in a very expensive market and although I have my primary home here, it is not an affordable market to purchase multiple investment properties quickly. I am looking for a market that is affordable but has high rent costs and high rental needs so I can maximize cash flow to allow for more rentals down the road. I’m curious if anyone has any advice what markets to look at where they have had success in that are also good for a newbie that is looking for cash flow over equity.
@Chris Criss I'll second some of the comments made by @Cameron Braig. The largest population growth over the next 30 years according to the US Census Bureau will be in the Sunbelt areas. Good weather, lower taxes, business-friendly, and landlord-friendly. It's also where a lot of the institutional money is going in either apartment value-add or build to rent strategies. Some markets like Raleigh, Tampa, Atlanta, Charlotte, etc. have already appreciated a bit too much in my opinion for much of a cash flow play. However, there are many secondary markets to consider. The Triad area (Greensboro, Winston Salem, High Point) would be one to consider. I'm from Raleigh, but personally investing in Huntsville, AL and Cape Coral FL with new construction to rent.
If you're new or just don't have time any longer like me, you may want to consider turnkey. I've personally had great success with Rent to Retirement. They are in a lot of the markets in the Sunbelt and may be worth looking into their market research. Good luck!
@Chris Criss the best cash flow markets are generally in the Midwest, however, not all markets are equal. For long term buy and hold, you want to look for not just cash flow but long term viability. The main things that I look for in a market are:
Cash flow and COC return Population trends Jog growth Median income Low to moderate property taxes and home owners insurance Favorable landlord/Tenancy laws
We're active in Indianapolis, Kansas City and the Quad Cities. All 3 markets are a good fit for the criteria I've outlined. I would highly recommend adding them to your radar.