Next Place to buy?

26 Replies

Hello All, 

I own properties in Rochester NY, and Detroit MI.   I spent a lot of time on both choosing those areas and making them work.   I am looking for a few new ideas for the next place to invest.   Ill have maybe $150,000 to invest by october.    What areas are you excited about? 

Hey Peter,  I am in the Detroit area.  How many properties do you have here? There are some great deals here and should still be in October.  If I would have to say another area besides here I would say Indianapolis,  Cleveland, pretty much the Midwest but I'm sure every state has an area great for investment with due diligence. 

Hello Al, 

I own about 25 homes, part owner of a 64 unit building (currently rehabbing), and small partner in a few other projects there.   How about yourself?  

@Peter Grosso

I live in ATL but I buy all my rentals in NWI or Northwest Indiana near Chicago. 

You can buy things like this:

A Areas all in for around 100k rent around 1,400 to 1,600

B Areas all in for around 60k rent around 1,000 to 1,300

C Areas all in for around 40k rent around 800 to 1,000

I live it also because it is also extremely Landlord friendly all laws are in our favor. 

The negative is you are not going to get really any appreciation at least nothing to write home about, but if you are just looking for cashflow it is great cash on cash return.

Hope that helps a little.

AC

Indiana , Ohio , and midwest 

Good luck moving forward with your investing

@Andrew Cordle Atlanta was once an area of interest for me, until I turned my focus to the Midwest. I'm curious to know why , you chose the Midwest with some areas of Atlanta being pretty cheap to get into in my eyes. Take into account I mean cheap in comparison to prices where I am in Philadelphia .

I traveled to Atlanta and found a 4br 2.5 bath single home for 40k in Atlanta . 705 wave land ave 30349 zip code

This seemed like a good deal for a buy and hold.

@Terrell Brown

I am not saying ATL is not a good place to invest for buy and hold.  When I started buying for Buy and Hold I lived in Chicago so I was buying rentals in IN. I later moved back to ATL so I continue to buy rentals in IN. 

I really enjoy the house I get for the price I get it and the rent it provides and the type or level of tenant I get in that area and price point. 

I think there are several areas in ATL good for rentals though. 

AC

Areas with negative/low/slow population growth have the rental yield.  However, your appreciation will significantly lag stronger markets.  

I think you need to project the investment value out 5 and 10 years as well as rent this far out.  Buying a house which makes a $100/mo more in a slow growth area without these longer term projections is short-sighted.

Rick

@Peter Grosso  I am partial to Indianapolis because, like mentioned above, it's a land lord friendly State, we have lots of jobs, affordable purchase entry points, a strong economy and high demand from renters [plus, I live here!]

@Peter Grosso  

Like many others have already said, the Midwest is great for cash flow. I like Indianapolis and Kansas City a lot. I just completed a review of 40 markets and some others that are looking promising are Omaha, Des Moines, Oklahoma City and Tulsa.

@Peter Grosso  - I'm not sure if you are flipping or renting, but here is the latest data for the markets that I'm interested in buying.  This is just a quick indicator for how hot the current market is there.  

Hi @Peter Grosso  I buy in the exact same market as @Andrew Cordle  and I will say that it's a great market to invest in. I live in Chicago, but all my rentals are in NW Indiana. For all practical purposes, it's considered a suburb on Chicago. There's a local train that runs between NW Indiana and Chicago. It takes less time to travel to NW Indiana than most of Chicago suburbs from downtown Chicago (where I live).

It's a great cash flow market with very high rental demand.

Thanks for starting this topic.

I am starting to think of where to invest.  What do people think of Columbus?

@Andrew Cordle and @Sharad M. what cities in NW IN do you buy, and type of properties at what cost:

2-3 BR/1-2Bath SFH - Price point for 2 BR and 3BR+

2-3 BR Duplex - Price point for 2 BR and 3BR+

MF  2-4 Flats - Price point for 2 Flat. 3 Fl, and 4 Fl

etc.

@Gautam S.  I am buying in EC, Hammond, Merrillville and with some properties in Lake Station and Hobart.

Price point varies based on what cities, but it's anywhere from $40,000-$65,000

I love Boise, and several surrounding communities because people move here specifically for the quality of life, and the city is booming...making top 10 lists all the time these days. I can only imagine that our market is extremely different than Rochester and Detroit...not many <100k properties here. 

@Justin S.  - Great chart.  Do you have something similar for Ohio? Specifically, Cleveland, Columbus, Toledo and Dayton? 

Thanks!

@Peter Grosso

Hi Peter,

I owned 3 properties in Rochester and recently sold out. They where decent rentals for me over the years.

We have been buying in Toledo for 3 months now and have over 25 deals pending on our white board.

Solid B class turnkey properties are going for between $40,000 - $45,000 with rents from $750 - $900pm.

Its a great market to be in. There is awesome value to be had all around the Midwest IMO.

Thanks for reading and have a great day.

@Peter Grosso  I'm partial to Indianapolis myself.

Good jobs, great buy in price points, strong rental demand, etc.

OK, guys.  I really appreciate the advice.   Perhaps my followup question belongs on a different thread(might do that anyway), The markets that I am in, I learned on my own.  I definitely made some mistakes in getting to know what is good and bad in the markets, how to get the best price points.  Is there a system to get to know a new market that I should learn? 

@Peter Grosso  

As I mentioned in another recent post, I like Indianapolis and Kansas City for cash flow. $150,000 would go pretty far in either of these markets. I think that both offer a good combination of economic strength combined with good housing prices and rent/price ratios. You can find information on both markets on my website at www.investwithpinnacle.com

Best of luck,

Mike

What are your thoughts regarding the Miami Beach area?  Look me up if you'd be interested in this HOT Market...

St Louis is a great place also. You can buy a house for 22k that has a tenant in it paying 650 per month. You can find a house for 30k with a tenant in it paying 700 per month. These homes are not in the war zones either.

@Peter Grosso  

I think the next market you should invest in depends on what you are looking to achieve from your investment, and what is your short term and long term investment strategy. What are your goals for your REI? I would be just like others on the forums that say invest in Atlanta, St Louis, Houston, Dallas, Columbus, etc... You should invest in areas and in PEOPLE that meet and exceed your goals and expectations.

Happy Investing, you will do great!!!

 "Be more concerned with your character than with your reputation. Your character is what you really are while your reputation is merely what others think you are"

-John Wooden

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