Suggestions on narrowing down your investing market?

Question

I'm new to the forum and looking to find markets to invest in. I think the ideal market would have a median price range for 3br/2bth in the 75,000 to 130,000. I expect to be investing long distance I'm based in northern Nevada. Looking to get suggestion on any market that meet the criteria or how other BP members have found there market when there local market numbers don't work.

Jody Sperling · Answer

Even six months ago, I would've said your numbers for a 3/2 were easy to find, but nationwide prices have surged on low interest rates, economic stimulus, and limited inventory. Even in ideal Middle West states like Indiana, Ohio, and Michigan, those prices are now fairly uncommon.

Your best bet if you want those prices is to pick a target market, design a mailer, and advertise for off-market property. I've snagged two houses for very low prices in the past four months because the sellers wanted to move quickly and had issues that made the property hard to sell through the typical avenues, but if I was only relying on MLS listings, I'd be shut out right now.

What are your long-term goals with real estate? Are you open to managing rehabs? Best of luck!

Brandon Goldsmith · Answer

Deals in this criteria are still possible, I would check out some Ohio markets and start to do some research from there. @Nick Cresci

Remington Lyman · Answer

There are deals like this in Ohio.

Antonio Cucciniello · Answer

@Nick Cresci I just visited Columbus to take a look at a few properties @Marc Rice is super knowledgeable and invests himself. I highly recommend him!

Michael Dumler · Answer

@Nick Cresci finding a property that meets your criteria is hard to come by in today's market. With record low inventory, it will be extremely difficult to hit the 1% rule for mls properties. If you do plan to purchase an investment property that meets your price, plan to have a low or zero due diligence period and very limited stipulations in your offer. Low ball offers in the nature of this sellers market will be laughed at. Obviously, I can only speak on behalf of my market (Atlanta, GA) but I assume the same conditions are present in other markets as well. Generally, your mid west and south east states are most prominent for low purchase price properties and cash flow specific investments.

Marc Rice · Answer

@Nick Cresci Columbus is a great market to invest with appreciation and affordable entry points, plus cash flow. As @Antonio Cucciniello mentioned there are a lot of good markets and a local investor friendly team is key.

Ian Walsh · Answer

Physical proximity is always a good way to start.

Zeke Liston · Answer

Hi Nick, I would check out Ohio. Columbus, Cleveland, and Cincinnati would all be good markets to check out.

Stephen Brown · Answer

As the Columbus folks have mentioned. There are deals in Ohio daily. 200+ sold multi-families here in Toledo since January 1st!

Antonio Cucciniello · Answer

@Nick Cresci Hey! Totally been in your shoes, now twice. First in New York City. Now living in Austin, the numbers for cash flow do not work.

So, what I do, is I look at factors that bring me cash flow:

Crime, unemployment, property tax rates, median home price, avg rents, price to rent ratio, population growth, if its a landlord friendly state or not and I compare away!

I actually just did this, then went on a road trip to visit 8 of my favorite spots over 9 days. Found plenty of good markets with properties on MLS that cash flow.

Suggestions on narrowing down your investing market?

Suggestions on narrowing down your investing market?

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