Wanted - Best USA states/cities/areas for young investors!

15 Replies

Hey everyone,

My business partner and I are currently contemplating the United States for real estate investing (we’re both foreigners), thus far we have been talking about the plan and how to execute it, but we're stuck on one very important thing, location. We want your opinions on the best places in the United States for wholesale and fix & flip investing. Also, any ‘pro-tips’ or tools you use to analyse an area would be very much appreciated. We’re both open to moving almost anywhere in the US, so your suggestions can be as crazy as you like, we’re just simply looking for a good place to start.

I’m not expecting any ‘golden answers’ so to say, but just to compile a list of notable places would be very helpful at this point.

Take it easy on me guys, 

Thanks in advance, 

Matt.

@Matt Riley   Texas Texas Texas is all I hear about, especially Austin and Dallas.  Good luck

Austin Business Journal just reported a RE economist saying now is the time to sell Austin hotels and apartments, and the rest of Texas is beginning to expect repercussions from the oil  slow down.  That is why investing local is lower risk....buy what you know.  Texas may or may not be overpriced but the up cycle has to be getting a little long in the tooth and prices at all time highs....but inventory is low so who knows.

How do you plan to fix and flip?  Long distance?  Or are you wanting turn-key rentals from wholesalers?  i know your local market is high, but our bust was 5 years ago and the places with jobs are back.

Long distance investing in RE is probably best in a REIT.  A REIT is much cheaper and faster to sell too.  Less chance of being swindled...are you planning on flying 18 hours each way and 2k round trip to view properties?  Google earth may not reveal all.

I love Kansas City and Charlotte, as well as my city of San Antonio. I have no concerns about the oil slow down in what we do. Most of our tenants and buyers are not in the oil business. Always a strong demand for affordable homes in our city. 

You will surely have to move to the US in order to figure out the fix and flip business as you will need a team here to make it all happen.  Managing from so far away will most likely be a disaster. 

There are several markets around the US that are good for your strategy.   Do you guys have an idea in mind for the type of homes you want to be flipping in regards to end sale price or type of homes you want to be dealing with?  

Some markets from what I see for example Dallas and Houston, all homes are well over $100k so you would be dealing with clients who are looking for more higher end properties and then you can also look at homes in the Memphis, Atlanta, KC, Ohio, Indy areas that will be lower then $100k on average.  I am sure you can get nicer ones in these markets as well. 

So you see there are several markets available, you just need to figure out what one(s) will work for your strategy. 

Good luck

Medium buymemphisnow stacksCurt Davis, Buy Memphis Now | [email protected] | 605‑310‑7929 | http://www.BuyMemphisNow.com

What is your bankroll? You cant beat southern cal,florida, arizona, plus those are areas a lot of Canadians frequent so you can have a so call foot in the door

if you don't have the bankroll then I would buy a house from @JoePickett to start

Need some idea of bankroll to give any reasonable recommendations. You can fix and flip in any market. They all will have pros/cons. 

In strong sellers markets on the coasts, you can likely sell a bit easier, but the competition to buy may be brutal. In midwestern markets, like here in Indy, it may be a bit easier to find potential deals. 

Are you looking to flip to retail buyers? Even here in a relative low-cost market like Indy...the most successful flippers focus on a bit higher priced areas that are mainly owner-occupied...so you still need bankroll. Cosmetic flips, with lower rehab budgets, very hard to find those deals and make them work. I see in my area large scale rehabs of older homes, with rehab budgets that are in the $50k+ range (some much higher). 

Which states have you visited the most and have the most knowledge . Start there.

Originally posted by @Marian Smith :

Austin Business Journal just reported a RE economist saying now is the time to sell Austin hotels and apartments, and the rest of Texas is beginning to expect repercussions from the oil  slow down.  That is why investing local is lower risk....buy what you know.  Texas may or may not be overpriced but the up cycle has to be getting a little long in the tooth and prices at all time highs....but inventory is low so who knows.

How do you plan to fix and flip?  Long distance?  Or are you wanting turn-key rentals from wholesalers?  i know your local market is high, but our bust was 5 years ago and the places with jobs are back.

Long distance investing in RE is probably best in a REIT.  A REIT is much cheaper and faster to sell too.  Less chance of being swindled...are you planning on flying 18 hours each way and 2k round trip to view properties?  Google earth may not reveal all.

 @Marian Smith

Do I plan to fix and flip while living here? Absolutely not.

You know my local market is high? Well, that was horribly understated. Melbourne real estate is simply unattainable.

Am I planning on flying 18 hours each way to view properties? No. When I said "We’re both open to moving almost anywhere in the US" I meant it literally, attaining residency in the US.

Thank you for your input Marian.

Thank you very much for the great advice everyone, its really appreciated!

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Houston is an absolutley competitive market, and to date the price of oil has only created more fear than anything else. A lot of the more seasoned investors are selling, however there are still a number of investors that are buying as quickly as they can!

Best of luck! 

William Dampier, City Bank Texas | [email protected] | 7133763321

Western Nebraska

Hi @Matt Riley . I'm a fellow Australian who lives in Atlanta. I didn't move here for real estate - we were transferred with my husband's work. I still see potential in the Atlanta market although it has rebounded a lot since the recession so don't expect to clean up with rock bottom prices.

I would make sure that you are investing in an area of the US which has strong employment and growth. I like Atlanta's prospects for growth because it has large companies based here already (Delta, Coca-Cola) plus new ones moving in. Mercedes just announced they are moving their US HQ down to Atlanta. Plus there's an Australian club! Because it's on the east coast it does take longer to get to Australia so if this is a big factor for you then you'd be better off being based on the west coast (although Qantas does direct flights from Dallas to Sydney).

Have you been on the Somersoft website in Australia? There's a section there which covers Aussies investing in US real estate. It could be worth trying to connect with others who have already bought property here.

PM me if you need any more info.

If Your interested in Florida property I have a canal front investment property in FL with house & bus. bldgs. totals 2400sq ft. Located in Port Orange FL just south of Daytona close to many attractions. It has a 1100sq ft house with 2 bedrooms and 1 ½ baths, a 662sq ft retail bldge with carports front & rear, There is also a 288sq ft. office/storage bldg, a 350sq ft 1 car detached garage with carport and 2 sheds. The prop is zoned B4, Com permitting rental, sales, service bait shop, office, restaurants etc. You get 2 lots with 15725sq ft. 85ft of com frontage with 4 accesses. Back is fenced and has a canal front of 147ft that goes to the ICW. Details and photos at 10realty.com listing#22426. This is a great prop to get started with in FL. 386-304-7508.

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