I had this same issue. I live in CA and didn't know what market to pick. If you listen to my podcast I talk about how I just googled the top 10 cash flowing markets and picked one. I happened to pick a great one, Kansas City (mostly MO side but I'm in KS as well). It got me thinking about what makes good markets - still affordable but with population growth.
I really dove into the data and I'm actually launching a software product called VestMap that allows RE investors to quickly look at the 7 location factors I think are important for any address in the US. Think of it as rentometer for location data. I recently did a large meta-analysis of the whole US by zip code (using geospatial methodology). Here are the 16 markets that I like based on that analysis. Feel free to email me for a link to the whole article (will be a blog post on VestMap.com when I launch) for detailed methodology. Too long to post here.
Investor · Charlotte, NC · Member since 2020 · 124 posts · 189 votes
5y
@Matt Carruesco Admittedly a daunting decision but at the end of the day all that matters is if the numbers work! Just do your research until you feel comfortable enough to jump in on a market
I will invest anywhere as long as the numbers make sense aside some other criteria such as rent to price ratio population and job growth etc.
Totally recommend checking out the Charlotte NC suburbs like Gastonia and Kannapolis where the rent to price ratio is amazing. Most of them hit the 1% rule with some TLC. Happy to further discuss this market as I live and actively help investors get into BRRRRs in these markets.
Real Estate Agent · Dallas, Ft. Worth · Member since 2020 · 52 posts · 27 votes
5y
Hey Matt, one thing I would recommend is sifting through various turnkey company websites and seeing what markets their properties tend to be in. You'll start to notice commonalities...for instance, it's not a coincidence that tons of turnkey companies tend to have lots of properties in Missouri. This might be one way to leverage the work they've already done in identifying great markets.
I'm having a hard time picking a place as well. Everytime I think I'm getting close something about the area gives me doubt. I've been looking in the Midwest for cash flow and landlord friendly. Many of the places where the numbers work the crime rates seem high.
It's not meaningful at all to look at the crime rate for an entire market. Any large market is going to have areas that have high crime. The key is knowing which neighborhoods are good. This is usually going to be in the suburbs outside of the inner city, urban core. We've been active in Indianapolis and Kansas City for 10 years and have had lots of success. Like most markets though, they both have good areas and bad. The biggest mistake out of state investors make is buying in the wrong neighborhood not the wrong market.