Investor · Washington, DC · Member since 2014 · 57 posts · 13 votes
If you had to tell a novice investor to buy one SFR anywhere in the US, where would it be and why?
Price point: $70-100K
CAP: 9.0%+
Rent/Price: 1.3+
Cash on Cash Return: 15%+
I am really interested in Dallas and Houston because of strong macro-economic fundamentals like job and population growth, but have heard that both markets 'are farther along the recovery cycle and that means home prices have rebounded to a point where cap rates are suppressed.' I like Philly because it's 2 hours from me, and they have strong CAPs, but I don't know if the city has the strong fundamentals like Dallas.
My favorite place to buy is as close to me as possible. I find that this keeps me from having any long distance issues with management and vacancy as well as only having to deal with my local state rules and regulations.
My favorite place to buy is as close to me as possible. I find that this keeps me from having any long distance issues with management and vacancy as well as only having to deal with my local state rules and regulations.