Investor, looking for Residential rental opportunities

23 Replies

I'm looking for good opportunities for residential real estate investments (Rentals!). Example would be $100K purchase price with $1,000 monthly rent at the minimum. Cap rate equal to 8% or greater. We have bought in Lincoln, NE, and immediately cash flowed there.

Looking for other locations to invest in, or to check out. Can anyone offer any advice or locations to look at?


Thanks in advance, excited to be here in BP!

@Colan Scheidenhelm I'm from Lincoln and currently living in/beginning to dip my toes into the long term rental business in Columbus. So,

1) I'll echo Remington and Zeke's enthusiasm for the Columbus market. I feel fortunate to be local and am looking forward to continuing the majority of my investing in my backyard,

2) out of curiosity, what areas of Lincoln are you investing in, what types of properties have you bought, what have the numbers looked like? My parents still live there and I've considered the area as one I might explore down the road due to some familiarity.

Colan,

Are you looking to pay cash or get financing? Are you determined to do rentals? Will you have to pay a local property management company and pay for repairs out of your pocket and cover vacancies?

I have operated differently through Home Sweet Home LLC property marketing and management for 20 years in middle Tennessee. Now moving into northern Alabama. If an investor pays cash I pay them 10% fixed. We cover all the repairs, maintenance and vacancies. If you put up $84,000 you receive 10% annual ROI. It is paid out $700 every month. We can do this because we become Joint Venture Partners with you and collect a non refundable down payment from the tenant. We also get a percentage of the deal when it eventually sells. We keep any positive cash flow above your $700.

If you get financing and pay 20% down payment, we pay you 15% annual cash on cash ROI, paid monthly. Same deal, we cover all vacancies, repairs and maintenance.

My investors have gotten their check every month for 20 years.

Just thought I would throw out an alternative to rentals.

Tim

Hi Colan! 

Florida is a really good market where you'll see $100,000 house = $1,200 min rent - $200,000 = $1,800 min rent etc... 

This depends on location though !!! NOT THE RULE! 

I would look into Deltona, Orange City, Eustis, Sanford, Lake Mary. 

South Carolina is really good as well specially if you go to small towns outside of big cities. 

I have a duplex in Hampton county, I would also recommend North Augusta and Columbia. 

Hope this helps and good luck!

Originally posted by @Colan Scheidenhelm :

@Daniel Judge awesome, seems like Columbus is a great area.

Lincoln - we have a converted 4-plex about 1.5 miles south of campus. Homes are older, most built around 1910 or so, so more maintenance may be required, but there are some pretty good opportunities!

The few times that I've looked, it did look like multifamilies near and around the campus area/downtown would be the best bet. I don't get back to Lincoln as much as I'd like, but it's amazing how much it's expanded, particularly on the west and south side of town. Seems like healthy/stable growth, too. 


Are you local and managing the property yourself? Was curious how the property managers in town are.

 

Originally posted by @Colan Scheidenhelm :

I'm looking for good opportunities for residential real estate investments (Rentals!). Example would be $100K purchase price with $1,000 monthly rent at the minimum. Cap rate equal to 8% or greater. We have bought in Lincoln, NE, and immediately cash flowed there. 

Looking for other locations to invest in, or to check out. Can anyone offer any advice or locations to look at?


Thanks in advance, excited to be here in BP!

 You can easily get places like that in the suburbs of Cleveland and they will need no work! 

Originally posted by @Colan Scheidenhelm :

@Tom Ott, how is the rental market where you're talking about in the 'burbs of Cleveland?

 Doing very well! Check it out. 

Originally posted by @Colan Scheidenhelm :

I'm looking for good opportunities for residential real estate investments (Rentals!). Example would be $100K purchase price with $1,000 monthly rent at the minimum. Cap rate equal to 8% or greater. We have bought in Lincoln, NE, and immediately cash flowed there. 

Looking for other locations to invest in, or to check out. Can anyone offer any advice or locations to look at?


Thanks in advance, excited to be here in BP!

Colan, Cleveland is one of the best markets for cash flow and it's great for a long term buy and hold. Property prices are pretty inexpensive here and that could be another reason why Cleveland is a great market.

Hey Colan! Tampa is a great Market. I have managed over 100 rentals for investors here. In the past 8 years rent prices just continue to rise even though interest rates are low. Let me know if you need any info on the Tampa market!