Budapest, Budapest · Member since 2017 · 17 posts · 3 votes
I'm new to investing and where I live is just to expensive to get into. I been studying and reading everything I can and talking to everyone I can. From what I've read Austin, Dallas, Jacksonville, Orlando, Tampa, and Atlanta are trending up right now. Anybody have any thoughts on this. I live in New York!
@Tom Depuma I can put you in contact with some owners that have off market Multi Families in Orlando for sale in A neighborhoods. Send me a PM if interested.
@Tom Depuma, welcome to BP! You're in the right place. My own properties are in Jacksonville and Chattanooga. I have market reports on the Orlando Metro Area if you're interested. PM me.
@Tom Depuma I can put you in contact with some owners that have off market Multi Families in Orlando for sale in A neighborhoods. Send me a PM if interested.
yea they def aren't at their lowest but still affordable and trending up. That's what I've read at least I don't know for sure I'm far from a professional.
you might want to also consider Indiana as well. The taxes are cheap and the state is landlord friendly. Northwest Indiana in particular is full of Potential and considered a suburb of Chicago as it lays close to the border of Illinois.
you might want to also consider Indiana as well. The taxes are cheap and the state is landlord friendly. Northwest Indiana in particular is full of Potential and considered a suburb of Chicago as it lays close to the border of Illinois.
Elbert, I'm curious about the Chicago markets. Have you been able to weather the storm of the high tax rates/exodus from the city?
you might want to also consider Indiana as well. The taxes are cheap and the state is landlord friendly. Northwest Indiana in particular is full of Potential and considered a suburb of Chicago as it lays close to the border of Illinois.
Thanks a lot for that advice. I will def look into that!
@Ryan J. Shope yes, well you could ask any wholesaler, flipper or landlord that actively invest in Chicago and everyone would all agree the taxes are very high but depending on where you invest deals can still be found. The market is very tight everywhere so the good deals are snatched very quickly.
Flip deals can still have ROIs ranging from 25-31% and buy and holds can still be found with CCR 12-17% its not common for deals like that to be plentiful right own but they appear every once in awhile. This is with high taxes.....but If I'm wholesaling a deal i don't go over about $4,000 in taxes usually because it kills the profit for the investor. This is based on me calculating and analyzing properties. It also depends if the investors are using my rehab team to fix the properties as well.
Lastly, if investors want to have a property manager for rentals that's also available for them to use as well. I work with one who manages Chicago and Indiana and she does a great job. So the infrastructure is there for any investor out of town to use, but unfortunately the good inventory isn't as available. Realtors with great experience of running comps provide quality tight comps within a 1/4 to 1/2 mile for properties and my GC provides rehab estimation cost so numbers are not pulled from out of the sky with randomness just to make a quick buck.
Aren't Austin, Dallas, and ATL hot markets that are at or near their peaks right now and cashflow terrible?
Yep :)
Tom, Matt is right. Dallas and Atlanta can still cash flow, but there is much higher cash flow in some other markets right now. Austin, as far as I know, isn't really cash-flowing at all right now.
Those cities got a huge amount of attention over the past few years because at some point, Dallas and Atlanta especially were the major hot spots to buy because they were on the brink of a big boom. But that boom already happened. The investors who bought right before it (I was one of them) saw a tremendous amount of appreciation on their properties with the boom. But now you'll be paying much higher prices (higher than pre-recession prices) and there's a lot of saturation.
There are other markets that are 'less boomed' and with higher cash flow. The highest cash flow and biggest boom potential I know of right now is Baltimore. The anticipated boom isn't anything like what Atlanta or Dallas' was expected to be, just because of where the general real estate economy is right now, but there's definitely growth anticipation.
Philly is another market that has a good bit of cash flow right now. I say that one just because you said you're in NY.
Aren't Austin, Dallas, and ATL hot markets that are at or near their peaks right now and cashflow terrible?
Yep :)
Tom, Matt is right. Dallas and Atlanta can still cash flow, but there is much higher cash flow in some other markets right now. Austin, as far as I know, isn't really cash-flowing at all right now.
Those cities got a huge amount of attention over the past few years because at some point, Dallas and Atlanta especially were the major hot spots to buy because they were on the brink of a big boom. But that boom already happened. The investors who bought right before it (I was one of them) saw a tremendous amount of appreciation on their properties with the boom. But now you'll be paying much higher prices (higher than pre-recession prices) and there's a lot of saturation.
There are other markets that are 'less boomed' and with higher cash flow. The highest cash flow and biggest boom potential I know of right now is Baltimore. The anticipated boom isn't anything like what Atlanta or Dallas' was expected to be, just because of where the general real estate economy is right now, but there's definitely growth anticipation.
Philly is another market that has a good bit of cash flow right now. I say that one just because you said you're in NY.
that is a tremendous help. I know Atlanta and Texas had theirs already but like I said I'm still learning. Can I ask you how I got started and any reccomendations on thing to read or learn or anything? That's awesome u took advantage of Dallas and Atlanta. If I could hit just one I would be thrilled hahaha
@Elbert D. Good to know. Are these flip margins coming from class C properties?
I don't go into the crime areas @Ryan Redenius the class A andB areas CCR honestly isn't that good but is a great area to flip. The class C areas have a mixture of both.
I'm just wondering how someone can predict where the next market is that takes off. I know nothing is a guarantee cuz then everyone would be doing it but they have to have some knowledge on it
All kinds of info out there that depending on how you put it together may or may not work. You'll get a million different answers of what to look for....
But you can use the census to look at growth/income for the area, it also has projections. You can look around on news sites to see if companies are or planning on building.
You really have to have an idea of the local market though, what's normal or works in the CA won't work in the midwest, what works in the midwest won't work on the east coast... etc.
@Tom Depuma What kind of REI are you looking to do as an out of state investor: flips, buy, rehab and rent, or something more passive such as turnkey investing? If the latter, I would have to agree with others that these markets you name are fairly late or too late in the game for a passive investor looking for cash flow, some more than others. Jacksonville (where I've had properties for years) you can still get modest cash flow, but mostly it is become an appreciation play. The turnkey company I invested with is now doing mostly new construction rentals.