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.
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.