Best Market For Rental Properties?

[Spencer Hodson]

Hello Bigger Pockets Community! I have been listening to the podcast for over a year and am currently reading books by David Greene and Brandon Turner. Up to this point I have been a passive observer of REI. In fact, this is my first post. However, I am ready to jump into the game. I have even spoken with private lenders who are excited to help me get started. My question for all the REI experts out there is pretty simple: “ If you were starting over today, which market would you target for long term buy-and-hold single family rentals?” I am looking to invest in B class properties in the Midwest or South. It looks like there are plenty of markets that can satisfy the 1% rule, so what else should I be looking for in deciding where to start? I have a friend going to medical school in St. Louis. His wife’s father builds new custom houses in Georgia. I know one family in Kansas City and one in Columbus. Neither is in real estate but they are involved in the community and probably know local real estate agents. I have also connected with a broker here on BP in Birmingham who seems young and hungry to build his own empire. Some additional info: I am living In CA and I have a lot of contacts in UT, ID, NV, TX, WA, and AZ, but from my initIal research it looks like those markets don‘t match what I’m looking for. Is it best to start with the people I know or to find the place that has the most potential? I feel like I can meet the right people if I find the right market but I’ve also heard it is best to start with people you know. Does that apply if i don’t know anyone in real estate in the typical rental properties markets? So where would you build your empire if you were starting today? I’m really excited to get started and I’ve already put in a lot of hours looking for deals. I really enjoy the time I spend on REI and I’m grateful to all the people out there helping new investors get started. Thanks!