New Investor Trying to Find a Market

53 Replies

@Hannah Paitchel we should definitely connect! I’m new as well with some exoerience in residential valuations and property data and I’m in LA!

I have been looking in Memphis, tn and Alabama and Arkansas. Heard good things about Ohio as well.

I started out focusing on auction properties from or Hubzu.

Talked to a developer the other day and his recommended was not to go OOS initially. Buy an hour away from you so you can touch it and feel it.

David Green also recommended I house hack.

I agree with some of the people commenting, leverage your resources. If you have boots on the ground that’s a great advantage.

I also noticed with our housing market data that people from Boston are moving to Portland ME. It’s driving sale to list price ratio folks are purchasing for more that list price. So there’s opportunity and growth.

I’m excited for you!

@Hannah Paitchel you should look at the southeast. Markets in florida, Georgia, and the Carolinas that could work for your price range. The southeast is experiencing the benefits of population migration. Appreciation is solid and cashflow is there in the right areas

Hi @Hannah Paitchel and welcome to BP! 

If you're looking for Cash flow, you should look into the Midwest, there are several markets in Ohio and Michigan where you can still find a solid class B property in your price range. 

If you're looking for appreciation I would look into a state with positive migration, mostly the southeast, Georgia, Carolinas, Florida. 

No matter what market you choose, the most important part is building a great team on the ground and finding especially a good property manager. Even the best property in the world won't perform with a bad PM. 

Originally posted by @Hannah Paitchel :

Hi Everyone!

I'm new to Bigger Pockets and have spent the last 6 months listening to the podcast, reading investing books and talking to friends who are all interested in the same stuff. I now am at the perfect time to start investing! I'm looking to buy a rental property for $150,000 max and my goal/priority is buying a cash flowing property. I'm young (25) and just starting out so the goal is to find financial freedom so I don't have to work my 9-5 for years on end. I'm looking to buy by the end of the year.

I currently live in LA and don't think this market is what I'm looking for. Eventually it could be the right market for long-term appreciation, but for now I'm focusing on cash flow. I grew up in New England so I am familiar with that area and think the opportunities are more or less the same as LA/California. I'm looking primarily for suggestions on markets and for people to tell their stories for where they are investing. I'd love to share our experiences on getting started, your do's/don'ts and anyone in-network they'd recommend in said market.

Thanks for your input and looking forward to networking!

Hannah Paitchel

 Awesome! I also started when I was young, sophomore in school, bought a duplex on OSU Campus and house hacked my way through school. That property is now on its way to giving me its 2nd cash out refi! That was here in Columbus, the market for renters is strong but price point is still affordable.

Hello Hannah. I started my investment journey a little bit outside of my backyard in Maumee, Ohio. It's a duplex and it rented nicely. The strong school districts really helped me boost rents. I bought the property at $180,000 and it brings in $2355/month.

I'd suggest Ohio as we are one of the only growing midwestern states. We also have plenty of millennials that want to stay in cities like Cincinnati, Columbus, and Toledo. Price of housing is much lower here than other millennial hotspots like Austin, Texas or Nashville, Tennessee. Our state has seen immense foreign direct investment from many major companies. We have one of the best healthcare industries in the nation... and our population is increasing in age so there is always a demand for healthcare professionals. It's a great state to invest in, regardless of the city you choose.

Good luck

Hey Hannah, I wish you the best of luck and am here to support. I am definitely biased when I say Atlanta is the spot to be doing your investing. Major hub in the South East and many ways to attack the rental market here depending on your desired audience. As you can see there are a ton of places to invest and achieve that cash flow you are looking for. I would aim to look for areas that you can see yourself spending more time in and having something attached to the city other than just an investment. Maybe a places you like going to, a place that is central and convenient for you. I truly think if you look intelligently enough you can find the numbers in most states people have mentioned. 

Welcome to BP!! Hope you find what you are looking for, you are definitely in the right place. 

@Drew Sygit 

I am a newbie investor in the Grand Rapids market but having trouble finding anything off market, as I have the financing, but my job being 1099 causes some problems. Would consider investing in Detroit if I got to know the right people would be great to connect. 

Here in Metro Detroit the "ring cities" we have a solid mix of $80-$120k purchase price, 1-1.5% deals or so, $200-$350/door, 10-14% ROI, "Good investment areas". Can go a little more aggressive, or a little more conservative depending on your preference.

Warren, Redford, Harper Woods, Taylor, Lincoln Park, etc. 

Part of what keeps the area great is everyone is terrified of "Detroit" and labels the entire area as a "war zone" whereas, we have markets of entirely $500k homes. Balance is to invest in the areas in between the A and the D markets. 

I have my rental properties here and we helped about 100 local and many long distance investors purchase here this past year. Our page has more testimonials to the *location* (not self-promotion lol, just answering the question on markets to invest in)

@Hannah Paitchel I've overseen ~450 investment deals over the last couple years in OKC and am happy to overview what it looks like here. If you'd like to jump on a call feel free to connect or I'm happy to type out some highlights! Big picture: low price points, steady low appreciation, easy to cash flow, low taxes, landlord-friendly. Good luck!! 

@Hannah Paitchel  Have you considered greater Cincinnati? I've lived in greater Cincinnati for over 10 years now. It is a growing area from both a population and job growth perspective. There are also a lot of development projects in the works, especially on the Kentucky side of the river. The City of Newport just built a new outdoor amphitheatre and spent a few million on upgrades to an outdoor shopping center, the City of Covington just purchase a tract of land on the river with plans to turn it into a multi-use outdoor space, and Amazon is building a truly massive distribution center on the airport grounds.

And because of Cincinnati's proximity to Kentucky, the international airport here is actually in Northern Kentucky. I live in NKY now and we're seeing not only a lot of great opportunities to buy (with the fantastic midwest prices people love) but also a solid renter population and opportunities for appreciation. If you'd like to talk, feel free to reach out to me. Good luck moving forward!

Hi Hannah! So happy for you to start this wonderful journey. It doesn't matter when you start, what matters is that you start. 

One thing to keep in mind is that as a out of state investor you want to make sure you find the right people to help you in that area (Property managers, realtors, lenders, etc...) I would check several markets and start interviewing some people to see how it looks. We are seeing more than 50% of investors in Ohio are typically out of state/country. Areas like Cleveland, Akron/Canton, Columbus and Cincinnati have tons of opportunities and possibilities for cash flow. 

Good luck!!!

Hey Hannah!

Over the past few weeks I have put together an excel spreadsheet containing data relevant to todays unpredictable market. I have created a spreadsheet with the 15 highest ranked/most potential growth cities in the US. This document holds information from basics such as crime rate and unemployment rate to TOP ranked neighborhoods in that city with the average rents, average cost/sqft, and so much more. This is all relevant data that can help you make your next real estate purchase, the smartest way possible. Save the hassle of exploring markets and information as I have it all condensed into one form for you with markets you didn't even know we're cash cows.

These cities are nationwide. I have also been in contact with multiple agents and investors from each state to verify the accuracy of my data. Ive sold 68 of them so far at $125. Let me know if you want one.

Noah Spiegel

Hey Hannah! You’ve already received so many wonderful suggestions here, so I’m going to try not to repeat anything that has already been said. We’re a super similar age, and I would love to connect with you to share tips and tricks on our financial independence journey!

I’m currently scoping out properties in Texas (good appreciation, bad cash flow) and Ohio (bad appreciation, good cash flow), which are two locations that have been mentioned here already. Super curious to find out what market you end up investing in!

Hey @Hannah Paitchel

I love hearing about people getting into real estate to quit their 9-5 job, because I was in the same boat not too long ago.

As far as markets, Indiana and Michigan have properties in your price range (about 150k) with great cash flow and decent appreciation. I know a few agents in each state with a lot of out of state investors because you can buy houses for so little and their rent is extremely high. The renters are also very high quality, if your in a good area and your agent has all the right connections. If you would like me to put you in touch with a rockstar agent in either state reach out!