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Updated over 1 year ago, 08/08/2023
New to investing - don't know what market to start with
Hi!
I have one short term rental property and am looking to invest in a second property. I am currently in Phoenix, AZ, but not sure if this is the best place to continue investing. How do I know where to invest next?
Thank you!
Hi Yael! Congrats on your first post! How is your STR treating you here in Phoenix?
Hey Yael!
Welcome to BiggerPockets!
AZ has become a confusing market from a rental point of view.
As for the AZ market overall, it all really just depends on the type of investment that you are looking to target. I'd love to brainstorm some ideas with you if you are open to it.
#5 House Hacking Contributor
- Realtor
- Reno, NV
@Yael Lanciano Congrats on getting an STR already!
A lot of people (myself included) have the "grass is always greener" mentality. If you're in the STR space and just continue getting better, slowly adding more units, and hiring to get more things off of your plate, is there anything wrong with that?
Not saying you should or shouldn't explore other things or other areas, just wanted to throw it out there :)
- Jake Andronico
- 415-233-1796
Quote from @Jeffrey Daniels:
Hi Yael! Congrats on your first post! How is your STR treating you here in Phoenix?
Hi! It's treating me well so far! Making money, but it hasn't been a year yet so I'm going to do a full analysis at the end of January. I'll keep you posted!
Quote from @Jake Andronico:
@Yael Lanciano Congrats on getting an STR already!
A lot of people (myself included) have the "grass is always greener" mentality. If you're in the STR space and just continue getting better, slowly adding more units, and hiring to get more things off of your plate, is there anything wrong with that?
Not saying you should or shouldn't explore other things or other areas, just wanted to throw it out there :)
I hear you, I think I just like the idea of having a place somewhere that isn't so seasonal, but I guess that's everywhere. Thanks for the tip!
Quote from @Noah Corwick:
Hey Yael!
Welcome to BiggerPockets!
AZ has become a confusing market from a rental point of view.
As for the AZ market overall, it all really just depends on the type of investment that you are looking to target. I'd love to brainstorm some ideas with you if you are open to it.
I'd love that! Let's connect.
#5 House Hacking Contributor
- Realtor
- Reno, NV
Quote from @Yael Lanciano:
Quote from @Jake Andronico:
@Yael Lanciano Congrats on getting an STR already!
A lot of people (myself included) have the "grass is always greener" mentality. If you're in the STR space and just continue getting better, slowly adding more units, and hiring to get more things off of your plate, is there anything wrong with that?
Not saying you should or shouldn't explore other things or other areas, just wanted to throw it out there :)
I hear you, I think I just like the idea of having a place somewhere that isn't so seasonal, but I guess that's everywhere. Thanks for the tip!
Best of luck to you on your search!!
- Jake Andronico
- 415-233-1796
Quote from @Jake Andronico:
Quote from @Yael Lanciano:
Quote from @Jake Andronico:
@Yael Lanciano Congrats on getting an STR already!
A lot of people (myself included) have the "grass is always greener" mentality. If you're in the STR space and just continue getting better, slowly adding more units, and hiring to get more things off of your plate, is there anything wrong with that?
Not saying you should or shouldn't explore other things or other areas, just wanted to throw it out there :)
I hear you, I think I just like the idea of having a place somewhere that isn't so seasonal, but I guess that's everywhere. Thanks for the tip!
Best of luck to you on your search!!
Thank you!
#1 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
- 3,755
- Votes |
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#1 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
start local. even if that's 1-2 hours away. go to REIA meetings, talk to agents, network, look at dozens of properties.
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,546
- Votes |
- 9,861
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#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Invest in your backyard. Being a remote real estate investor does not work unless you have a solid team.
Quote from @Nicholas L.:
start local. even if that's 1-2 hours away. go to REIA meetings, talk to agents, network, look at dozens of properties.
Quote from @Eliott Elias:
Invest in your backyard. Being a remote real estate investor does not work unless you have a solid team.
Quote from @Yael Lanciano:
Hi!
I have one short term rental property and am looking to invest in a second property. I am currently in Phoenix, AZ, but not sure if this is the best place to continue investing. How do I know where to invest next?
Thank you!
A lot depends on the kind of loan you want to take on. You can do a 10%-down, second-home loan in markets that are at least 50 miles from your primary residence, but you can't do 2 in any one market. Then again, sometimes it pays to build an empire in one spot if you have a good team (cleaners, handymen, inspectors, etc.). Good luck to you!
- Real Estate Broker
- Cody, WY
- 40,393
- Votes |
- 27,448
- Posts
Quote from @Yael Lanciano:
Hi!
I have one short term rental property and am looking to invest in a second property. I am currently in Phoenix, AZ, but not sure if this is the best place to continue investing. How do I know where to invest next?
Thank you!
Look for Dave Meyers in the BiggerPockets blogs or on their YouTube channel. He's the number cruncher for BiggerPockets and regularly talks about the hottest markets to invest, with data to back up his recommendations.
- Nathan Gesner
Quote from @January Johnson:
Quote from @Yael Lanciano:
Hi!
I have one short term rental property and am looking to invest in a second property. I am currently in Phoenix, AZ, but not sure if this is the best place to continue investing. How do I know where to invest next?
Thank you!
A lot depends on the kind of loan you want to take on. You can do a 10%-down, second-home loan in markets that are at least 50 miles from your primary residence, but you can't do 2 in any one market. Then again, sometimes it pays to build an empire in one spot if you have a good team (cleaners, handymen, inspectors, etc.). Good luck to you!
Good info thank you so much!
Welcome Yael!
Check out AirDNA. It's a website that gives you data and market trends on short term rentals. You can search any city or zip code. It will even give you recommendations on pricing and help you pick a market with demand for short term rentals.
Drive around neighborhoods. See which ones are bound to come up in near future. Maybe you see some condos coming up or breweries. Go where the neighborhoods are becoming "hip" Don't focus solely on cash flow but also equity growth and type of people you are willing to handle at your property.
Also, be patient. Find a property that just needs sweat equity and for a good price. May look outdated and uglier than hell but is that something you can fix mostly yourself? If so, I would hop on that one. Sometimes it takes months or a year to find the perfect property. Don't rush your first ones, as these could be the ones that grow quickly in equity and give you better returns and financing options like HELOCS to fund your next properties without using your own cash. Good luck!
Hi Yael! I tend to make my STR investment decisions based on mill rates and property taxes. Then I focus on those lower-tax locations that have a need - vacation areas, near hospitals, universities, etc. I know that sounds too generic but I know that taxes are inevitable and housing will always be in demand. I think the area you are focused on is a fantastic area. Sometimes focusing on one area in the beginning can help you grow, to learn to manage across borders. Get those processes in place now to grow later :)
@Yael Lanciano- consider 1) investing close to where you live 2) consider places that you have familiarity with 3) consider areas that you have some connections / contacts
Hi Yael,
Not sure if investing in your own backyard is possible. However, if prices are too high or returns no longer make sense - perhaps look into markets out of state.
Right now - my team and I are in the Detroit, MI marketplace and have found a bit of success there. I would strongly suggest looking there.