Rental Property Investor · Vancouver, WA · Member since 2014 · 73 posts · 15 votes
Hello BP!
I am trying to decide what city to invest in...multi family, SFH for buy and hold. How do you "vet" a city for stability? I have tried researching online but I haven't found what I'm looking for. I will call a couple of realtors and propert may managers for opinions, but I'd like data! Suggestions please. Thanks so much!
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
10y
There are many ways to research out of state investing. It is a question asked all the time here on BP. Give the search feature a shot and you should find hundreds of posts about it. I don't have good luck with the BP search myself, so I usually go to google and type "site:biggerpockets.com out of state" without the quotes. That makes google search only on BP for those terms. Here is an article to help get you started.
Lenexa, KS · Member since 2016 · 58 posts · 14 votes
10y
Good ideas. I have looked into additional markets and in addition to great input from BP, I also look at the following to help with my decision making:
- Large employers - a strong employer base is vital to good renters. Do you like these employers and do they have staying power. Investing in a rental property next to Kmart headquarters might not be a good move, but next to Google is probably a good move.
- Government employers - Since government employment is steady, if there are a large number of these jobs, then rents will be strong and consistent. For example, Kansas City has the Federal Reserve Bank, City Government, large IRS facility to name a few.
- Captialization rates - Talk with some turn-key providers and see what they are offering in this area. It may be a great employment market, but if the cap rate is below 5%, then you are hoping for a speculative value increase and that is educated gambling.
- Location, Location, Location - Drive the neighborhoods and see if it is what you are looking for. Some folks want C neighborhood, others want A. Online pictures may look great, but no one takes a picture of a crack in the foundation or the neighbor who has let their house become a crack house. Time on the street is the best investment you will make.
Go with these four things and you should be able to make good decisions.
Real Estate Professional · Atlanta, GA · Member since 2016 · 10 posts · 6 votes
10y
Very interested in this discussion. If seeing up-and-coming developments in major cities will affect your decision at all, try looking your city up on Devmap.io? Awesome resource to read about and edit info on new construction.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
10y
@Christine Johnson-Sundby I talk about this in detail on my podcast show which you can find on our website. Look for the 11/19/2015 episode. I've also done a webinar on how to choose a market and invest out of state. I'll be happy to send you a link to a recording of it if you'd like.
Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
10y
@Christine Johnson-Sundby If you want any information on Grand Rapids please reach out as I am a local Realtor/investor. Several out of state investors are starting to come this way. Great returns and the city and surrounding area is growing at a rapid pace.
Lender · Spokane, WA · Member since 2016 · 81 posts · 47 votes
10y
@Christine Johnson-Sundby I recommend would Spokane for sure. The Rents for Multi family and SFH are crazy high here right now. Lots of money to be made on long term holds.