Investing in new markets
Member since 2023 · 25 posts · 20 votes
Investing in new markets
Most Popular Reply
Member since 2019 · 18 posts · 24 votes
3yHi. I am in NY and invest out of state.
So how to choose a sold market when investing in out of state? First, we look on a macro level (cities to invest in) and then micro level (specific areas within that city). The cities must meet the criteria below.
Macro level: Rent to value ratios, Unemployment rate, Population growth, Major employers, Workforce diversification, Landlord tenant laws
Micro level: Crime rate, Owner occupancy rate, Vicinity to retail and jobs
In short, we are investing in landlord friendly markets with high rent to value ratio, positive population growth and opportunities. Within that, we select areas with low or no crime, which are close to jobs and to the downtown core.
Some good markets - OH (Cleveland, Columbus Dayton, Cincinnati) ST Louis, Memphis, Detroit. Also sunbelt states - Alabama is our next market.
All good markets are saturated and will become saturated quickly, but don't let that stop you! There are great deals for everyone.
50 Replies
- 3yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
The midwest....im in Central IN specifically
- Member since 2019 · 18 posts · 24 votes3y
Hi. I am in NY and invest out of state.
So how to choose a sold market when investing in out of state? First, we look on a macro level (cities to invest in) and then micro level (specific areas within that city). The cities must meet the criteria below.
Macro level: Rent to value ratios, Unemployment rate, Population growth, Major employers, Workforce diversification, Landlord tenant laws
Micro level: Crime rate, Owner occupancy rate, Vicinity to retail and jobs
In short, we are investing in landlord friendly markets with high rent to value ratio, positive population growth and opportunities. Within that, we select areas with low or no crime, which are close to jobs and to the downtown core.
Some good markets - OH (Cleveland, Columbus Dayton, Cincinnati) ST Louis, Memphis, Detroit. Also sunbelt states - Alabama is our next market.
All good markets are saturated and will become saturated quickly, but don't let that stop you! There are great deals for everyone.
- Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes3y
Quote from @Keith Tarasiewicz:
Hello!
I have been tasked with picking new markets to take our flipping/wholesale business to and was wondering what parts of the country investors are having the most success finding good deals in? We're currently in a handful of states on the east coast (Virginia, Maryland, DC, Pennsylvania) and prefer to branch out from there, but are open to suggestions.
I've liked the data I'm reviewing in the southeast but my fear is so does everyone else and those markets will quickly become saturated.
Thanks in advance Bigger Pockets community!
Best,
Keith
Invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 fortune 500 companies, over +25% population change since 2000, 2016 smart city challenge award winner gaining 50 million dollars in funding from the government ( https://www.columbus.gov/smartcity/), Intel is spending 20 Billion dollars to build two semiconductor plants, and many many more great things presently and coming in the future. Needless to say Columbus will remain a strong real estate market for the foreseeable future.
- 3yGreg ParkerBusiness MemberRealtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 670 posts · 536 votes
Let me know if you need any help with the Montgomery, Alabama market.
MGM Property Pros LLC - 3yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Keith Tarasiewicz:
Hello!
I have been tasked with picking new markets to take our flipping/wholesale business to and was wondering what parts of the country investors are having the most success finding good deals in? We're currently in a handful of states on the east coast (Virginia, Maryland, DC, Pennsylvania) and prefer to branch out from there, but are open to suggestions.
I've liked the data I'm reviewing in the southeast but my fear is so does everyone else and those markets will quickly become saturated.
Thanks in advance Bigger Pockets community!
Best,
Keith
Hi Keith, personally, I really like Columbus Ohio and work with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. My biggest advice for out of state investors is finding the right team members who has your best interest at heart (and not chasing a commission check or see you as a paycheck!). If that means interviewing multiple people, you should definitely do so! As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
Jimmy Lieu, Red 1 Realty4.9122 Reviews - 3yJoshua JanusBusiness MemberRealtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
Quote from @Keith Tarasiewicz:
Hello!
I have been tasked with picking new markets to take our flipping/wholesale business to and was wondering what parts of the country investors are having the most success finding good deals in? We're currently in a handful of states on the east coast (Virginia, Maryland, DC, Pennsylvania) and prefer to branch out from there, but are open to suggestions.
I've liked the data I'm reviewing in the southeast but my fear is so does everyone else and those markets will quickly become saturated.
Thanks in advance Bigger Pockets community!
Best,
Keith
Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. The appreciation rate in Columbus has been 8% higher than the national average over the last year. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.
Another example of economic growth is the upcoming Ohio State University Wexner Medical Center Inpatient Hospital which is a 1.9million square foot hospital that will bring over 800 new beds and a thousand new jobs.
https://abc6onyourside.com/news/local/new-osu-hospital-expected-to-transform-health-care
Here are a few more recent investments
https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbus
Check out The Complete Guide to the Columbus, Ohio Real Estate Market which goes through the Columbus, Ohio market in depth and will give you a better scope of where the highest levels of growth are taking place and where to look to invest.
- Member since 2023 · 25 posts · 20 votes3y
Quote from @Kerry Noble Jr:
The midwest....im in Central IN specifically
Hi Kerry thanks for the reply! Are you doing most of your investing in the city or suburbs of Indy?
- Member since 2023 · 25 posts · 20 votes3y
Quote from @Elena Orselli:
Hi. I am in NY and invest out of state.
So how to choose a sold market when investing in out of state? First, we look on a macro level (cities to invest in) and then micro level (specific areas within that city). The cities must meet the criteria below.
Macro level: Rent to value ratios, Unemployment rate, Population growth, Major employers, Workforce diversification, Landlord tenant laws
Micro level: Crime rate, Owner occupancy rate, Vicinity to retail and jobs
In short, we are investing in landlord friendly markets with high rent to value ratio, positive population growth and opportunities. Within that, we select areas with low or no crime, which are close to jobs and to the downtown core.
Some good markets - OH (Cleveland, Columbus Dayton, Cincinnati) ST Louis, Memphis, Detroit. Also sunbelt states - Alabama is our next market.
All good markets are saturated and will become saturated quickly, but don't let that stop you! There are great deals for everyone.
Hi Elena,
Thanks for all the details! We've got our criteria figured out for the most part, we're just interested to hear how other investors are fairing in other markets. I've been hearing/reading a lot of good things about OH. Are you finding deals/inventory to be scarce? What type of returns do you target? Would love to connect offline if you have some time this week!
Best,Keith
- Huntsville AL · Member since 2021 · 44 posts · 30 votes3y
I used to work in Boston and there's a strong rental market on cycle with the universities. Your best bet for an off market deal there would be to contact a property manager let them know what you're looking for. A lot of the time when a big landlord is looking to sell it doesn't even hit the MLS because that property manager has investors waiting.
- 3yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Keith Tarasiewicz:
Quote from @Kerry Noble Jr:
The midwest....im in Central IN specifically
Hi Kerry thanks for the reply! Are you doing most of your investing in the city or suburbs of Indy?
Inside 465
- Member since 2019 · 18 posts · 24 votes3y
@Keith Tarasiewicz yes we invest in Columbus and Cleveland. The markets have both changed since we started investing in both. They are both competitive markets but great markets. Dayton and other sub markets are good too but I am not active in those cities. Happy to connect if you would like.
- Real Estate Agent · Member since 2019 · 569 posts · 257 votes3y
Quote from @Keith Tarasiewicz:
Hello!
I have been tasked with picking new markets to take our flipping/wholesale business to and was wondering what parts of the country investors are having the most success finding good deals in? We're currently in a handful of states on the east coast (Virginia, Maryland, DC, Pennsylvania) and prefer to branch out from there, but are open to suggestions.
I've liked the data I'm reviewing in the southeast but my fear is so does everyone else and those markets will quickly become saturated.
Thanks in advance Bigger Pockets community!
Best,
Keith
Have you looked into the Emerald coast? We do flipping and building in our area. New construction is pushing the highest premium on the beach and properties under 500k for short term rentals are moving in less than 14 days if staged and renovated correctly.
Quote from @Keith Tarasiewicz:
Hello!
I have been tasked with picking new markets to take our flipping/wholesale business to and was wondering what parts of the country investors are having the most success finding good deals in? We're currently in a handful of states on the east coast (Virginia, Maryland, DC, Pennsylvania) and prefer to branch out from there, but are open to suggestions.
I've liked the data I'm reviewing in the southeast but my fear is so does everyone else and those markets will quickly become saturated.
Thanks in advance Bigger Pockets community!
Best,
Keith
Flipping to whom end user or investors for rentals ?
- Real Estate Agent · Harrisburg, PA · Member since 2016 · 159 posts · 82 votes3y
Check out Camp Hill PA area!
- Real Estate Agent · Columbus, OH · Member since 2023 · 161 posts · 217 votes3y
Consider the midwest! As a local investor in Columbus, Ohio I think we have a good mix for appreciation and cashflow.
- Realtor · Columbus, OH · Member since 2023 · 8 posts · 25 votes3y
Hey Keith, I recommend you to start in the Columbus market. In the past years Columbus grew out to be the largest 15th city in the entire nation. You could start in central Ohio. The other day I was reading an article about Franklin county historic houses where the houses are being increased in value of 30-35%. The good news there are plenty of distressed houses in Franklin county that needed to be flipped, Good luck.
- Real Estate Agent · Atlanta, GA · Member since 2020 · 416 posts · 233 votes3y
Hey Keith,
The demographic trends in the southeast are absolutely booming right now. With that being said, you are wise to have some skepticism on what is going on today and what will happen tomorrow . There will likely be a time in the future where supply down here catches up to demand which will affect prices on a very local level. If you are going to go out of state and into an unfamiliar market, keep an eye out for desirable areas with constrained supply.
Josh
- Real Estate Agent · WA · Member since 2021 · 254 posts · 173 votes3y
Bigger pockets has a list of the top performing states on average for investors. I heard great cash flow and appreciation investments can be made in Alabama and Detroit.
- Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes3y
Quote from @Ran Iarovich:
Bigger pockets has a list of the top performing states on average for investors. I heard great cash flow and appreciation investments can be made in Alabama and Detroit.
I love that people are slowly starting to wake up to Detroit.
The next 3-5 years are going to be a lot of fun for the folks that have been putting the work into that market.
- 3yElise Bickel TauberBusiness MemberReal Estate Agent · Cranberry Twp · Member since 2017 · 385 posts · 198 votes
Are you over in Philly area or Pittsburgh? I'm over in Pittsburgh and there are a lot of great deals here both for rentals and flips.
- Member since 2023 · 25 posts · 20 votes3y
- Member since 2023 · 25 posts · 20 votes3y
Quote from @Najma Osman:
Consider the midwest! As a local investor in Columbus, Ohio I think we have a good mix for appreciation and cashflow.
Thanks Najma! Are you finding deals easy to find? Are your target returns strong?
- Member since 2023 · 25 posts · 20 votes3y
Quote from @Joshua Janus:
Quote from @Keith Tarasiewicz:
Hello!
I have been tasked with picking new markets to take our flipping/wholesale business to and was wondering what parts of the country investors are having the most success finding good deals in? We're currently in a handful of states on the east coast (Virginia, Maryland, DC, Pennsylvania) and prefer to branch out from there, but are open to suggestions.
I've liked the data I'm reviewing in the southeast but my fear is so does everyone else and those markets will quickly become saturated.
Thanks in advance Bigger Pockets community!
Best,
Keith
Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. The appreciation rate in Columbus has been 8% higher than the national average over the last year. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.
Another example of economic growth is the upcoming Ohio State University Wexner Medical Center Inpatient Hospital which is a 1.9million square foot hospital that will bring over 800 new beds and a thousand new jobs.
https://abc6onyourside.com/news/local/new-osu-hospital-expected-to-transform-health-care
Here are a few more recent investments
https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbus
Check out The Complete Guide to the Columbus, Ohio Real Estate Market which goes through the Columbus, Ohio market in depth and will give you a better scope of where the highest levels of growth are taking place and where to look to invest.
Hi Joshua thanks for the reply and the info! Looks like a lot of fans of Ohio in this thread!
- Member since 2023 · 25 posts · 20 votes3y
Quote from @Joe Chirdon:
Check out Camp Hill PA area!
Hi Joe, looks like a hot market! Redfin compete score is 90!
- Investor · Cleveland · Member since 2021 · 247 posts · 240 votes3y
Quote from @Keith Tarasiewicz:
Quote from @Ben Firstenberg:
This might be unconventional, but I think finding good people (agents, contractors, lenders) will be more crucial to your success than the particular market you choose. Like you said, everyone knows which are the "good" markets and which aren't, so the real competitive advantage is the people you work with. So maybe pick a handful of interesting markets and reach out to some people in those areas and see if anyone resonates with you?
That said, we have a great team here in Atlanta. Would love to talk if you're interested. Feel free to reach out!
Hi Ben thanks for the note and will definitely keep you in mind! Do you strictly cover Atlanta proper or other parts of Georgia?
Of course! The majority of my business is in Atlanta (including the outer suburbs, which are quite extensive) but I'm licensed for all of Georgia.
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