Hot Markets In The States

14 Replies

@Michael LaVan You need to define "HOT" to get a good answer.

Rentals are great in the Midwest (KC St. Louis Minnesota Indy)

Homes are flying off the market just about anywhere in Texas. In the areas I work in north Texas the average DOM are 10 - 15. I direct mail market to get my homes and then sell them quick.

The west coast still has properties somewhat affordable and are appreciating quickly. There could be another bust but that is all speculation investing.

You need to know what you are looking for specifically to find a hot market. If you don't have your investing plan in place, any market you go to will lead to failure.

On top of that, I think it is almost always best to invest where you know. If you are just starting out you probably should invest in your own backyard before trying to become a "big time player" investing out of state.

Like @Ryan Blake said... Define HOT!! In Houston we are experiencing a HOT market for buyers since there is so much inventory. Sellers are of course suffering from this. I've met a few investors that have decided to rent their flips for a while while the market turns to a sellers market again. For wholesalers the competition is fierce and so many players are fighting over leads that it is very hard (lots of marketing $$$$) to get houses under contract at this time. 

Good luck and happy investing!

@Michael LaVan What @Dennis Rodriguez is experience is exactly why you need to know your market and what you are looking for. It is a great time to buy in Houston while it is a great time to sell in Dallas/Ft Worth. These large metro areas are only 4 hours apart but are right now on opposite ends of the spectrum. Find out what you want to do and then ask where is the best place to do it.

@Ryan Blake I totally agree with the comment about investing in your local market.  I realize there are many people who do it successfully out of state and remotely HOWEVER a big part of this game is mitigating risk and I feel there's no easier way than if the property is a short 15 minute drive

Thanks for all the Input @Ryan Blake @Kenton Coffman @Dennis Rodriguez . I have been investing in my market for 2 years now doing flips but im based out of NY where its high numbers. I have been really successful but am interested in branching out to see. A buddy of mines lives in KC and said its looks promising over there also but it seems like Texas is where I need to do some more research. Amazing info Thanks guys 

Michael LaVan

It sometimes feels like every market is hot now .

Example the Detroit market was a running joke on the BP podcast for a while back in the day ... but now ever Detroit has been seeing appreciation . I remember there was a guy on the BP podcast saying how some places have gone up several times over there in a short period .

People are seeking out places where they can get yield and cash flow.
Before places like Phoenix and Atlanta used to be hot rental markets but now it seems people are buying more in places like Cleveland , Indianapolis , Kansas City , Birmingham,AL.etc

The other markets are still hot even though people might not be able to cash flow well because the general economy is doing well , unemployment is half or less than it was during the recession in many of these places and people want to live in those places .

@Micheal Lavan

"What Markets are you guys finding to be HOT right now?"

On a macro level - every market.

"High tides raise all ships"  - this is why you're seeing traditionally dead markets growing.

Never a better time to be a flipper.

Originally posted by @Michael LaVan :

This is a great point @Joseph M. hows the LA market going for you with flipping

 Any market with a high demand for housing will be good for flipping. It's not really the market that can make you a good or bad flipper. It's your ability to do the following.

  • Market to & or track down & find sellers who are in distressed situations. 
  • Estimate renovation costs accurately.
  • Manage teams of contractors & projects.
  • Accurately estimate the re-sale price of the home in question.
  • Keep costs down.
  • Stay on budget.
  • Keep project on schedule.
  • Fund projects.
  • Market completed projects to home buyers.

Birmingham is a good market but like all markets right now they are beginning to slow. You'll see it if you research the market. Most every market is inflated currently. 

Whichever market you buy in keep in mind you're entering the going back to school time & Holiday season. You'll still have buyers but not as many as you would during the spring(closing by the beginning of summer when school is out) & summer(moving before school starts).

You're also approaching election time. Many will wait to see if the Democrats get control of one or both chambers of Congress to destroy everything Trump has passed or wants passed in the future. Given the political unrest many have turned to waiting it out before making the biggest purchase of their lives. 

Homeowners (families) are more intelligent & consider things that most investors ignore because they are only interested in what's best for their family. Investors typically only see dollar signs. That's how they get in trouble. 

Be aware of the market & society in general before you invest. It'll be the difference in a good investment or one you get caught on.

@Michael LaVan It depends on what you consider hot and what your investment objectives are. Markets like Austin and Dallas are on fire when it comes economic and demographic trends but they aren't good cash flow markets. Personally, if your strategy is to buy and hold for cash flow, I don't think it makes sense to be chasing after the latest "hot" market. If you want good long term, stable cash flow, I would look at midwest markets like Kansas City and Indianapolis. 

Hi,

I have found Boise and Meridian, ID to be great for cash flow.  I bought four places in May / June - 2 in Bench (83706) and 2 in Merdian (83713) and had no problem renting them out.  A lot of that had to do with families wanting to move before school started.  Prices seem to be trending higher in these areas since I bought, so fingers crossed that I made the right investment.  

I have a friend who invested in Indianapolis and has positive cash flow.  I haven't looked into Kansas City yet and am told that Bend, OR might be promising.  A lot of Californians are moving to places like Boise and Bend.  

Anyone have additional insights on Bend or KC?

Thanks, Sandhya