What Area of the Country to Invest in?

23 Replies

We currently live in Southern California where good deals for buy and hold are pretty scarce. We don't like living here and are looking to move. My husband's industry is pretty flexible and there are jobs in many parts of the country. We are currently looking at Denver, Atlanta, Charlotte, Dallas and Nashville. What should we be looking for to determine if an area has a profitable real estate market?

I think pretty much anything outside of California would be profitable. Definitely check out Nashville, but I'm partial to Knoxville. It's beautiful here and our market is very good. It's less expensive than Nashville and not as big and crazy.

Any city in your list should work wonders for you. You might want to look at the fact that which place is growing and to which place most of the people are moving. Good luck. 

Nashville is an amazing city. The real estate market is strong at the moment with a large influx of people. Any market you mentioned above will have its opportunities. My recommendation would be to first look at what city you like the most. The deals will be there no matter where you go.

I can't speak for the rest of the cities, but I agree with @Luka Milicevic .  Nashville and surrounding areas are really nice places to live and have a high happiness index.  Deals are all around the area too.  Downtown Nashville is a tough market, but should be a piece of cake compared to California.

Originally posted by @Robin L. :

We currently live in Southern California where good deals for buy and hold are pretty scarce. We don't like living here and are looking to move. My husband's industry is pretty flexible and there are jobs in many parts of the country. We are currently looking at Denver, Atlanta, Charlotte, Dallas and Nashville. What should we be looking for to determine if an area has a profitable real estate market?

Robin Cant speak for Denver but Atlanta and Charlotte are two markets I dealt in love them both. Dallas another great market have heard nothing but great things about that place.  Nashville I keep hearing some great things about that market as well.

Feel free to Pm me I can answer any questions

Alex

Originally posted by @Alex Franks :
Originally posted by @Robin Lommori:

We currently live in Southern California where good deals for buy and hold are pretty scarce. We don't like living here and are looking to move. My husband's industry is pretty flexible and there are jobs in many parts of the country. We are currently looking at Denver, Atlanta, Charlotte, Dallas and Nashville. What should we be looking for to determine if an area has a profitable real estate market?

Robin Cant speak for Denver but Atlanta and Charlotte are two markets I dealt in love them both. Dallas another great market have heard nothing but great things about that place.  Nashville I keep hearing some great things about that market as well.

Feel free to Pm me I can answer any questions

Alex

 hey Alex, see your profile and just curious how did you make the first step? As you just mentioned, i am seeing a lot potentials in Dallas now, however it is getting a bit too hot now with so many private equities and cash buyers? how would you navigate in a such market, especially how to accumulate cash flow for a big project? thanks

Originally posted by @Michael Lee :
Originally posted by @Alex Franks:
Originally posted by @Robin Lommori:

We currently live in Southern California where good deals for buy and hold are pretty scarce. We don't like living here and are looking to move. My husband's industry is pretty flexible and there are jobs in many parts of the country. We are currently looking at Denver, Atlanta, Charlotte, Dallas and Nashville. What should we be looking for to determine if an area has a profitable real estate market?

Robin Cant speak for Denver but Atlanta and Charlotte are two markets I dealt in love them both. Dallas another great market have heard nothing but great things about that place.  Nashville I keep hearing some great things about that market as well.

Feel free to Pm me I can answer any questions

Alex

 hey Alex, see your profile and just curious how did you make the first step? As you just mentioned, i am seeing a lot potentials in Dallas now, however it is getting a bit too hot now with so many private equities and cash buyers? how would you navigate in a such market, especially how to accumulate cash flow for a big project? thanks

@mike Lee it takes years to be one of the players in the market. Still learning myself every day.

I got 16 going on 17 years in this business. Yes the funds did the same thing here. I tell folks to listen to the market and it tells us what we need to do at the time.

Never recreate the wheel just go with the flow

Alex

So is it a given that Southern California cannot be invested in right now and there are no good deals? Because I am looking to invest here right now...

Originally posted by @Jack T. :

So is it a given that Southern California cannot be invested in right now and there are no good deals? Because I am looking to invest here right now...

@jack T

Jack promise there are deals in your back yard as many folks still doing deals there. Just a much higher entry point. Which makes other markets look more attractive. I always tell folks let me come to California spend a month attending meeting , finding the right folks doing deals. Knowing enough about this business I am sure we can do deals there.

Again it all about knowing the numbers, finding the right folks, network and marketing.

Promise there are deals being done in your back yard every day

Alex

@Jack T

There are some deals in So Cal, but it's one of the highest cost of living in the US, probably only behind SF and NY. It takes a lot more money to get in as a property here is about 3X or more the cost of similar properties in the middle of the country. I've talked with a few local real estate investors, and they're finding good deals, but they have a strong network in place to find them and are putting down 40% or more, which I just can't afford in this market. They also told me the ROI is not as great in So Cal as other markets. We don't like living in So Cal anyway, and our money will go farther somewhere else.

Got it. 

So say you came here looking for a good investment, where would you start? Who would you be looking to meet/network/market with/to? Say it was a $300k property all cash.

Hey @Robin L.

There is a GREAT market for REI down here in San Diego.

Don't let the cash-flow gestapo on this site scare you away from what Fortune and Realtor.com ranked in the top 3 best Real Estate markets to invest in 2016 :)

If you do ultimately decide to go out of state to invest, PLEASE put in every bit of effort needed to establish a strong OOS team. No matter how great of a deal you find, without the right agent, property manager, vendors, etc; you will NOT see the types of returns that led you out of state in the first place.

Originally posted by @Kevin Fox :

Hey @Robin L.

There is a GREAT market for REI down here in San Diego.

Don't let the cash-flow gestapo on this site scare you away from what Fortune and Realtor.com ranked in the top 3 best Real Estate markets to invest in 2016 :)

If you do ultimately decide to go out of state to invest, PLEASE put in every bit of effort needed to establish a strong OOS team. No matter how great of a deal you find, without the right agent, property manager, vendors, etc; you will NOT see the types of returns that led you out of state in the first place.

 While it's true that San Diego has a much better investing market than LA, it's a solid 3 hour drive from where I currently live. I really want to invest near where I live, because I want to be very hands on--driving around the neighborhood regularly and slowly building a local team, so San Diego is just too far.  I know "hate" is a strong word, but we hate living in Los Angeles. We would be moving to one of these other cities as a better place to raise our kids, so I wouldn't be out of state investing. We are waiting to start investing until we figure out where we want to move, because we want our investment properties to be close by.  

You're very fortunate that your jobs are flexible enough that you can move anywhere that you want. We currently live in SD and although we are brand new to REI, I am quite hesitant about looking for any deals to flip or rent here because of the high cost of entry (and the fact that CA is such a tenant-friendly state -- the importance of which, cannot be understated in my previous experience). But our jobs are keeping us here for now, and so we are looking for the best way to get started in this market. Good luck!

Originally posted by @Robin L. :
Originally posted by @Kevin Fox:

Hey @Robin L.

There is a GREAT market for REI down here in San Diego.

Don't let the cash-flow gestapo on this site scare you away from what Fortune and Realtor.com ranked in the top 3 best Real Estate markets to invest in 2016 :)

If you do ultimately decide to go out of state to invest, PLEASE put in every bit of effort needed to establish a strong OOS team. No matter how great of a deal you find, without the right agent, property manager, vendors, etc; you will NOT see the types of returns that led you out of state in the first place.

 While it's true that San Diego has a much better investing market than LA, it's a solid 3 hour drive from where I currently live. I really want to invest near where I live, because I want to be very hands on--driving around the neighborhood regularly and slowly building a local team, so San Diego is just too far.  I know "hate" is a strong word, but we hate living in Los Angeles. We would be moving to one of these other cities as a better place to raise our kids, so I wouldn't be out of state investing. We are waiting to start investing until we figure out where we want to move, because we want our investment properties to be close by.  

Hey Robin.

That's certainly fair enough. San Diego would still be my vote for raising a family, but I realize it's not for everyone ☺️

Originally posted by @Sharyn Umaña-Angers :

You're very fortunate that your jobs are flexible enough that you can move anywhere that you want. We currently live in SD and although we are brand new to REI, I am quite hesitant about looking for any deals to flip or rent here because of the high cost of entry (and the fact that CA is such a tenant-friendly state -- the importance of which, cannot be understated in my previous experience). But our jobs are keeping us here for now, and so we are looking for the best way to get started in this market. Good luck!

CA laws are SO tenant friendly it's crazy! We experienced this first hand when we were renting and had a run-in with a landlord who tried to raise our rent too high and too fast-- (we had lived there over 2 years and there were all kinds of protections as far as length of notice for raising rent, etc.) San Diego is not as high as LA but still very expensive market compared to the rest of the US.

Denver is a beautiful place to live, but it is not a good market unless you are only after appreciation. Finding cash flowing property here is no longer an easy task. Not that it cannot be done, but not without fairly considerable effort. I recommend you follow the advice of the Real Estate Guys Radio Show, "Live where you want to live and invest where the numbers make sense."

You will have to spend much more energy vetting the team and location you are comfortable with, but no more time than you would vetting the area and the property if you buy in your back yard. Different strategies with different pros/cons. It's all up to you and your goals!

Best of luck and happy investing!

@Robin L. Hi Robin yes I believe you should also look into Phoenix( yes i know is super hot ) but you said dallas, I am a Former Analyst for a large Private Equity Real estate Institution, i see number maybe a little differently then most people, but all the market you mention are good, and i have nothing against them but my 2 cent is Phoenix I used to have very diverse portfolio in about 6 states, now 80% is focus in Arizona and New Mexico. I see something happening in does suburban markets send me a PM i will happily share more with you also, @Jack T. also jack California, is a bit saturated, but San Diego inland and north markets are pretty solid, and have ok cash flows and to build long term wealth California is the best place by far. anything you sit on in california is gonna be worth a fortune in the future, is just the facts like manhattan. areas where the crash never affects as much, prices like in smaller market. that still haven't recovered. 

Originally posted by @Robin L. :

I've talked with a few local real estate investors, and they're finding good deals, ... They also told me the ROI is not as great in So Cal as other markets. We don't like living in So Cal anyway, and our money will go farther somewhere else.

I would not trust those investors as the ROI in So Cal and San Fran has been higher than anywhere else in the nation. This is a fact and can be looked up.

Having stated that the ROI in So Cal is great, if you are moving elsewhere I would not invest in So Cal. It is not because of So Cal ROI but because of difficulty of doing out of state REI.

I think you need to decide where you want to live and then invest smart locally.  

Good luck

The Denver area is terrific.  Properties are definitely appreciating.  You can still find properties that will cash flow because rents are also quite high.  You do need to do your homework before investing, just like always, but buy and hold is a lot easier to do right now than fix and flip, unless you're buying wholesale.