Where to buy rental properties

Question

Hi. Been asking questions here in the forum. And the answers has helped me a lot on my decision making.

Anyways, I live in San Jose, Ca. Finally decided on a garage conversion ADU and plan was submitted today to the city. This will be for rental when done. This will take about 4 mos probably to get the approval, then they will start construction.

My next step now is to buy a rental property. Either a duplex or single family home to start with. I’m deciding between Indiana (indianapolis or Lafayette/west lafayette) area since I lived there before for 4 years or buy a DUPLEX in Sacramento area.

My primary goal this year is cash flow. Along with my ADU project, I hope to increase my Savings and  cbuy another property next year locally or somewhwre closer to San Jose.

Was planning on paying cash on a property in Indiana to start with rather than using financing with Duplex in Sacramento. Would love to hear your thoughts.😀

Aaron Van Curen · Answer

@Rhyna Orillaneda disclaimer: I am licensed real estate agent in Indiana with a focus on investment properties, I have a small property management company, and I invest myself. I will have 9 or 13 units by the end of the month depending on how my due diligence goes.

Anyway, Lafayette is a great market. I think West Lafayette is saturated. There is potential in Indy if you can find the deals. I have 14 off market units in Indy and 14 more coming up in Lafayette if you want to know more about them.

I believe Lafayette is the perfect market because we are the connection between Chicago and Indy, we have a diverse work industry including automobile, health, different types of manufacturing, and we have the massive research department of Purdue on top of the school itself. We are expected to grow from a population of 75k to 100k in only a couple years.

I am working with several clients on the west coast so I’m familiar with your needs. Feel free to DM if you have any questions about the market here in Indiana.

Ali Boone · Answer

Thanks Rachel! :)

Antoine Martel · Answer

You're going to get a better return if you buy out of state rentals and get financing with them. Do not buy with cash because that is going to cut your returns in half.

Mike D'Arrigo · Answer

@Rhyna Orillaneda I was born and raised in San Jose. I don't know the Lafayette market at all other than it is home to Purdue University. It appears to have good population and job growth however I don't know what is driving that. My concern would be the diversity of it's economy and industry and what the economic drivers are. It may be a good market but I wouldn't let the fact that you lived there for 4 years influence your decision. Having lived there has nothing to do with whether it fits your objectives and criteria. That's all that matters. I have a lot of experience in Indianapolis and know that market well. Feel free to reach out if you want some insight and help with Indy.

Rachel H. · Answer

@Rhyna Orillaneda Definitely touch base with @Ali Boone. She's also a fellow Californian and buys property out of state who has written extensively on this topic for the BP blog. Good luck with your purchase!

Where to buy rental properties

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