Is It Possible To Market In Cities That Are Small? 10,000 People

17 Replies

I would like to get some quality feedback as to whether or not i'm in the right market for real estate investing. I live in a city called Clinton SC which is comprised of about 10,000 residents or less. The city next to me which is about 15 minutes away from her is called Lauren's SC; it too has the same demographics. I want to see if other investors are able to make it work for them. The next biggest city is Greenville SC which its about 45-60 minutes away. I currently hold an 8-5 regular technician job in Clinton, but have the flexibility to work my 8-5 as well as REI. Im trying to figure out if I can even make it a go here.

I haven't invested in a city that small but I don't see why not. Of course won't be as many opportunities and such but there could still be ways to get into REI by investing in all 3 of those cities around you.

Try it.

I sure hope so because 21 of my 26 rentals are in towns with a population of 10,000 or less! No matter what the size of the town, people need to rent. You need to make sure that the town isn't saturated with rentals. How do you do that? Check Zillow & Craigslist for rentals along with their rental rates. Drive around the area and look for "for rent" signs. You could also put a false ad on Craigslist and see how much response you get.

@Jesse R. The good thing about investing in small towns is the fact that you have much less competition, and if you’re good at it you b come the go to guy.

Ok thanks for that feedback. My next question is since the area is small and I’m going to be using either PML or HML how do I factor in the waiting period after the house is fixed? As far as someone said my area is a great place for rentals I totally agree! I have gotten several leads for awesome rental properties, but have not been able to do anything as I can’t find an investor who will invest in a low dollar amount on a house. I have had 4 offers for around 9000 for each house to buy, but just didn’t have the capital of my own nor a PML or HML to do the deal so I passed. But I’m trying to get a higher ARV house to fix and flip so that I can buy those lower end houses with my own capital and then rent them out. My main concern about buying a higher ARV for a great deal is that I may have to wait a while for it to sell and I’m not sure how that will irk with a HML or PML. Thanks everyone for their generous feedback. I appreciate you.

Originally posted by @Jim Shepard :

I sure hope so because 21 of my 26 rentals are in towns with a population of 10,000 or less! No matter what the size of the town, people need to rent. You need to make sure that the town isn't saturated with rentals. How do you do that? Check Zillow & Craigslist for rentals along with their rental rates. Drive around the area and look for "for rent" signs. You could also put a false ad on Craigslist and see how much response you get.

Hey Jim.  Thanks for posting.  Do you mind sharing your average price and rent ranges?

Jesse, have you thought about partnering (joint ownership), where you do the legwork and you use a silent partner for the finance?  I would love to talk to you about that

@Mike Dymski   I have commercial as well as residential so I will just give out the numbers for the residential.  My average price is around $70,000 for a sfh and they rent for $800 to 1100 per month.

Joe Jackson
I’m definitely all game in joint venturing with another investor like yourself. I couldn’t find any contact information to get ahold of you but maybe we can reach out on here.

@Jim Shepard not a lot of meat left on the bond after a repair or two. I imagine you are probably not leveraged the way I am. I do $1250-$1350 a month on homes I have 70k in. Typically it's a buy, big rehab and rent.  (Greenville, SC)

@Mario Brown Still deals like that to be found in the Greenville area? Or are those numbers from a by-gone era?

@Jesse R. I would be interested in investing with you. Let me know when you find a good deal and I will analyze it with you. I'm new to the game as well but I have some money to invest.

Originally posted by @Mario Brown :

@Jim Shepard not a lot of meat left on the bond after a repair or two. I imagine you are probably not leveraged the way I am. I do $1250-$1350 a month on homes I have 70k in. Typically it's a buy, big rehab and rent.  (Greenville, SC)

Hey Mario. What is your average ARV? I imagine it's a lot more than $70k.

@Jesse R. I have a small multifamily property in that area. It's been my best deal and extremely easy to fill via Craigslist.

Hey @Mike Dymski & @Graham Howell ARV is typically 125k to 145k. Of course i have not always been that selective but when trying to manage multi-family and deal analysis team with single family activity, the singles have to be well worth the time.

Each of the 4 homes i have hit these numbers on have been the product of direct mail, an 1 instagram lead and one of off Craigslist all in the last 12 months.  

@Jesse R.

Absolutely. Your plan on flipping one for capital and investing is solid but a word of caution: based on price it sounds like it may be in a D area so harder to find quality tenants. Just because a place pencils out on paper doesn't mean it works if the tenants don't pay and you have to go through evictions.

Go to your local REIA to see who operates in the area. It's nice being the big fish in a small pond if there isn't a lot of competition in your area.

Your area is probably not saturated with DM which is good too if you're using that to find off-market properties.

@ Ray Lai. Thanks for the information sounds like you understand my area. What type of DM do you think would be best to find off market homes?

@Jesse R. 

I would love to sit down with you one day and discuss your plans, goals, etc. Maybe meet up at Whitefords or somewhere that's not to crowded. I live in Clinton myself so it's nice seeing you on here. 

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