Where to invest

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Looking for a multi family buy and hold property. Budget is 200k. Want good cashflow and appreciation. Been looking in Birmingham, Alabama and Scranton, pa. Any thoughts?

Nathan Grabau · Answer

I have 3 properties around Ames, Iowa that I purchased at their price point and I have been really happy with their performance. Really strong tenant base that seems content with being long term renters. If you send me a DM, I can get you in touch with the team I use there. I got really lucky as my real estate agent their is also an investor with 100+ doors, and runs a property management company with 100+ additional doors. By buying and selling with him and his team, you instantly reap the rewards of their scale.

Patrick Drury · Answer

@Michael DubasI would definitely recommend Columbus OH. It's a solid hybrid market of cash flow and appreciation. Columbus has lots of job opportunities and population growth.

William Broxson · Answer

Im local to Youngstown Ohio area, but you can get a nice duplex or triplex for 200k or less with 15% gross cap if you look hard enough. You might be able to get more than 1 if you look in a C Class neighborhood.

Kate Daye Ruane · Answer

Michael,

Welcome to the fun! once you start making money in real estate it’s addicting :) I can’t speak for some of the farther away markets, but I invest heavily in the Scranton market, myself, and a little in Florida. I am a broker here, who specializes specifically in investment properties, and also in property management. I am happy to answer any real estate investing questions that you may have so feel free to message anytime. Scranton is a great market for a 200k property. To give you an example of an actual listing that I just put on the MLS about 45 minutes ago:

It’s a 3/1 - 3/1 duplex in turn key condition. Each side would rent for 1200+. All separate utilities. New roof. Annual gross: $28,800Expenses are only taxes, trash, and insurance at $5800Annual Net: $23,000List price: $179,90013% cap rate

The property is in great condition and an easily marketable location. Im not sharing this to sell the property, because it’ll have multiple offers, but to give you a real life example of what your money can compute here specifically.

Best of luck in your new journey and don’t hesitate to reach out.

Kate Daye Ruane · Answer

It’s a great place for anyone from the tri-state area because you have the ability to easily come and view your property or do anything that you need to do in the area at any time without having to really pay for any travel or stay the night anywhere.

I have the best property manager, Aubrey, who has worked to manage over 200 tenants of mine annually, and now has openings to take on some more clients. She treats each property as her own and maintains high rents & happy tenants and landlords. I’ll get you in touch with her when you’re ready!

Here is some info about her: https://m.facebook.com/story.p...

Lindsay Davis · Answer

Hey @Michael Dubas, I can’t say much about Scranton, but I invest in Birmingham and think that the city's affordable real estate, appreciation potential, and strong rental growth rates could make it a good fit for your budget and investment goals.

While Redfin estimates a median listing price of around $250k, there are still properties on the market today (and certainly off-market deals) that could be purchased for $200k or less.

Birmingham’s demographic trends also look pretty promising. We grew by 5% or 55,000 people over the past decade. Plus, the city’s economy is well-diversified, and staple industries like healthcare, education, and telecommunications make the city recession-resistant and prop up rental demand.

Of course, Birmingham isn’t monolithic, so make sure to dig deeper into the specific neighborhoods and zip codes you're interested in. Hope you find a property in the Magic City that catches your eye!

Eliott Elias · Answer

Why is your budget 200k?

Emma Duncan · Answer

I live and invest in Birmingham. It’s a great cash flowing market for me but you have to be very careful about what areas you’re investing in. We have heavy crime in certain pockets of the city and unfortunately that’s where you’re going to find most of the multi family properties. Pay attention to crime maps and let me know if you need any guidance if you decide to jump in here.

Bob Stevens · Answer

Cleveland of course. It has been the number 1 overall rental market for about 10 years still going strong. We used to get 25- 30% net caps with all in pricing of about 30k, Now 10- 15% will all in pricing of about 100k. MF were 5k per unit, now 45- 65k per unit. These are based on cash purchases.

Sam McCormack · Answer

@Michael Dubas

Micheal, have you checked out Cincinnati? You could definitely find a duplex in great condition for 200k here!

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