Buy & Hold - If you could invest anywhere in the US?

34 Replies

Originally posted by @Ricardo S. :

Raleigh, NC

 Just out of curiousity, why Raleigh? Not that I disagree, I live here and as a newbie I want to learn!

@Shaun Reilly  

  I like your numbers but with most people buying out of state they usually pay too much to begin with they don't get the same deals the locals do.. So the 2% appreciation usually just gets them back to par.. does not add to their return and in many cases they could and will be under water for what they paid for them 5 years down the track.

Originally posted by @Jay Hinrichs :

@Shaun Reilly 

  I like your numbers but with most people buying out of state they usually pay too much to begin with they don't get the same deals the locals do.. So the 2% appreciation usually just gets them back to par.. does not add to their return and in many cases they could and will be under water for what they paid for them 5 years down the track.

Well I see what you mean.  I'm sure that is the case a lot.  Though my guess is more for the east and west coast newbies that want to get in the game but their $30K cash isn't even in spitting distance of a down payment for an investment locally but can get them 2 "cash cows" with 75-80% financing in most turnkey markets.

I am going to assume someone with a million in cash will be a little more savvy and won't get taken by a turnkey (over)promoter offering $80K ARV places to them for $90K after doing a lipstick on a pig rehab of a $40K junker.

@Jay Hinrichs  ,

    Yes, it is a CA lake, but nowhere near the points you mentioned. If you have driven by route 5 from Bay area to LA, there is a this mountain called Tejon ranch. Going 5 south you climb up this mountain and you see this lake between the mountains.  I envy all the folks that are boating and doing fun stuff in that late up on the mountain.  During one of the trips, I had to stop by and take a selfie!. Someday after I retire, I would like to be in driving distance of that place to go spend time around.  Moon,  moon light and lakes on the mountain always mesmerize me.

@Peter MacKercher : Are you saying a 14% ROI is easy, particularly in your area or in general?

Thanks,

@Naveen Desai  interesting that you're spread pretty far and wide. Are you partnering with various investors who are local to the respective areas? Are they doing the legwork to acquire the properties or are you doing so remotely? Do you have an opinion as to which place has more potential going forward, So FL or Plano?

@Peter MacKercher   great stuff thanks for the detail. Sent you a PM.

@Shaun Reilly   according to your analysis, sounds like the "middle" option of 11 homes at 91k is the one to avoid. Fair to say you're an advocate of either investing in the higher end or the lower end depending on your time and effort constraints/preferences?

@Wes Shive  , Thanks for the note.  

So FL or Plano, TX.  It is hard to tell. The speculation is based on the business activities. 

So FL is attracting may new startups compared to few years ago. So there will be new folks coming in, and many from other parts of the world. Also if the immigration reform comes through,  this area will get bustling. ( I would home this happens). Certain expensive areas like Weston, FL which did not loose much even during great slump around Miami, will still hold good. So is SouthWest ranches ( lots of opportunity now). 

Plano on the other hand in my opinion is a Sure shot area to invest in. Now I cannot expect the percentage potential ROI, but the growth in the area in last 2 years has been amazing. Certain zip codes better than other. So is other parts of Dallas. I would not mind to invest on new construction in the area as by the end of its project completion, the properties would already appreciate and can give me instant return, or equity if I decide to hold on. These other parts being coppel dist, Valley Ranch, Las colinas, and little lesser side, Carrolton, Farmers branch, McAllen. Lots of companies(ask me which ones) from NY, MI, CA are heading to TX and burbs like Fort Worth, Richardson, Arlington. Only if I had lots of cash, I would maximize my investments in Plano and around.

All the places I have invested in are the places I have lived and worked in for few months to couple of years.  So, I know the area, and if need be friends to call upon to just drive by and feed me their inputs. Am grateful to each of them. 

It would be really interesting to see what other folks have to say. So Wes, is this just a hypothetical question OR you really have access to funds to invest? How can I get to reach you to talk?

Thanks, 

Naveen. 

Originally posted by @Jeremy Ferguson :
Originally posted by @Ricardo S.:

Raleigh, NC

 Just out of curiousity, why Raleigh? Not that I disagree, I live here and as a newbie I want to learn!

 Population explosion, positive business outlook, lots of cheap properties, less competition, nice weather

If I can't net 10% ROI, it's not worth my time. I think the answer you will find is to invest in markets that you know. Most investors will say their market is best because they know their market and they are comfortable in it. I like the SEC states because there is a huge rental market. Taxes, insurance, and labor costs for repairs are inexpensive compared to CA markets. Bottom Line: the best market to invest in is the market that you know best.

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