How to Find the Right Market
Fellow investors! I am eager to buy a multifamily, buy and hold rental property!
My question is: If your current market is undesirable to invest in, how do find the best market out of state?
I currently live and work in New York City, but due to the market being too expensive for me personally, I've pretty much ruled out investing here. There are a number of other markets I'm currently thinking of.
I'm going to provide my thought process for each so bear with me...
Columbus, Ohio
- I grew up in the area, have friends and family here, and know it like the back of my hand.
- I know that the market is doing well - with a good volume of multifamily homes (quads in particular) that you're able to purchase that meet the 1% rule.
Birmingham, Alabama
- My parents moved here shortly after I graduated college in 2017, and they are supportive of me investing in real estate.
- I have a very knowledgeable family friend who is a real estate investor here, who would be willing to mentor me.
- I am not as knowledgeable of the area.
Washington, DC / Virginia / Maryland Area
- I travel to DC often for work, and I went to school here.
- I imagine multi-family properties may be more expensive, since it's more of an urban center.
- I have a good understanding of the layout in DC, but very little knowledge of the surrounding area - which would include properties that'd likely be more affordable.
Overall, the drawback for Cbus and Birmingham is that they are much farther from me than DC. DC is relatively agreeable in this regard, as it's a short train or bus away, and I'm there almost every other week. In Cbus and Birmingham, though, I might have more support given my knowledge of the areas or close relatives who'd be willing to support me.
What do you think?
Also, if you have any thoughts on the state of the market in each area, this is welcome as well. Thank you in advance for your time!