Top 10 hottest top ten real estate markets.....bogus?

Top 10 hottest top ten real estate markets.....bogus?

Dublin, OH · Member since 2015 · 41 posts · 9 votes

The saying goes..."where there this is explosive job opportunities, then explosive real estate follows." 

 SOMETIMES THESE LISTS ARE BOGUS. 

For example, the labor index in 2012 said .."Des Moines, IA had explosive job growth and unemployment rate of 3.5%. So I moved there wanting to get a decent paying job.

I discovered the mega-job growth was in the retail sector paying a measley $8 dollars an hour. Anyone could get a job at Walmart or Menard's --everyone was hiring. But there were no high paying salaried jobs anywhere. So I left Des Moines the next year.

Makes me wonder why Tampa, FL is on the list for hottest real estate markets. I lived in Tampa before I moved tor Des Moines. I had bought a condo in Florida years ago and ended up in bankruptcy after I was laid off from my job in 2010. THERE ARE NO JOBS IN TAMPA, so therefore the RE market cannot be that hot. Yes, I tried renting out my condo and had a lot of renters but most of them were poor rental prospects because nobody had jobs! I couldn't even qualify most of them.

I could see wealthy retirees gobbling up rentals and homes in Tampa. But how is the RE market hot there? I left Tampa in 2011.

What are your thoughts on these lists?

Top 10 Cities Offering the Most Opportunity for Real Estate Investors, 2016

  1. Dallas, TX
  2. Portland, OR
  3. Denver, CO
  4. Miami, FL
  5. Tampa, FL
  6. Seattle, WA
  7. Nashville, TN
  8. Atlanta, GA
  9. Houston, TX
  10. Austin, TX
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y

I would add Charleston SC to that list as top 10.... talk about jobs.. and stable hot real estate

See this reply in the discussion

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    The top 3 are undoubtedly hot.

    For jobs though, I think there is no better place to live than the DC area which does not make that list. With 10 of the too 20 counties as measured by median household income in the DC area (and that doesn't count DC proper as it isn't a county) I find every one I know here has a high paying job.

  • Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
    9y

    Well, we learned in 2008 that it's not only plentiful jobs that make a market got.... Sometimes it's speculation! The market I am most familiar with is Phoenix, AZ, but Las Vegas and many Florida cities fall into the same category. Investors gobbling up properties in the expectation that they can resell at a gain or rent out often drive up prices, too. 

    That said.... It seems to me that many of the cities on this top 10 list actually do have a robust economy with well-paying jobs. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    I would add Charleston SC to that list as top 10.... talk about jobs.. and stable hot real estate

  • Charleston, SC · Member since 2013 · 380 posts · 157 votes
    9y
  • Dublin, OH · Member since 2015 · 41 posts · 9 votes
    9y

    The internet has bad information.

  • Investor · Sunnyside, Queens, NY · Member since 2015 · 213 posts · 159 votes
    9y
    Gotta take all of these lists with a grain of salt. If it were me, I'd be looking at markets where: 1-homes stay on the market for less than 50 days 2-you can still get 1% rule 3-there is a notable hipster scene 4-is also a decent tourist destination 5-inventory can't keep up with demand so absorption rate is > 20%
  • Investor · Riverside, CA · Member since 2016 · 129 posts · 67 votes
    9y
    How do feel about the Memphis and Kansas City markets for SFR buy and hold with good cash flow and some long term appreciation. Looking at both markets and lots of folks extolling the virtues of both on here. Appreciate your honest feedback. Thanks
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Rob Moran  as long as you buy at the top of the market in those areas...

    just don't get sucked into buying in the HOOD.. in any market for that matter.

  • New York City, NY · Member since 2016 · 470 posts · 348 votes
    9y

    a lot depends on your strategy too. What works in san francisco might not work in kansas city & vice versa. I would try this:

    1) list your goals

    2) create a strategy to achieve those goals

    3) create a list of attributes to look for in a city that would achieve that strategy

    4) find cities that have those attributes

  • Investor · Riverside, CA · Member since 2016 · 129 posts · 67 votes
    9y

    Thanks @Jay Hinrichs. Definitely not interested in any bad or marginal neighborhoods. Are you suggesting it's perhaps better to wait and prices are too high?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Rob Moran  mid west is a stable market were prices rise very slowly if at all.

    and with so many homes been turned into rentals values simply fall in line with what an investor will pay for a cash flow.. with the 1% rule being pretty universal.. so 800 rent 80k prop

    that type of thing

    waiting for a correction would only help you if you have the ability to buy pre rehab rehab your self and then find management... the prices that HAVE moved are the wholesale prices in those markets but not a lot values are still low so if you have a 20% upward movement in wholesale prices like we have seen  the wholesaler house for 30k move up to 36k.. and if it moves down 20% same thing.

    Its all about RENT in those markets.. and 700 to 1000 has been the same for the last 20 years basically

  • Investor · Riverside, CA · Member since 2016 · 129 posts · 67 votes
    9y

    @Jay Hinrichs Thank you Sir. 

  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
    9y

    @Rob Moran I'd be happy to show you around Memphis, if you plan to visit. @Jay Hinrichs you are correct, stay in areas that have a proven track record of performance and that are in B and better neighborhoods!

  • Dublin, OH · Member since 2015 · 41 posts · 9 votes
    9y

    I like to buy rentals  in D and warzone areas. Easier to get tenants to occupy the house.

  • Investor · Las Vegas, NV · Member since 2015 · 273 posts · 217 votes
    9y

    @Jay Hinrichs I don't know about Kansas City or Memphis, but not all "hoods" are a bad place to invest just saying...

  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    9y

    I always take these lists with a grain of salt. A hot job market or real estate market doesn't always equate to a hot investment markets, especially if your objective is cash flow. The SF Bay Area is a perfect example of that. Prices in at least 6 of the 10 markets listed have been pushed up too much to get strong cash flow and ROI. Interestingly enough, two of the best cash flow markets and very popular investment markets aren't even on this list. Those are Kansas City and Indianapolis. Both have good employment and strong economies but with very affordable prices which cash flow well. We sell turn keys in both markets. I'd be happy to share my thoughts on either vs some of the other "hot" markets around the country.

  • Investor · Las Vegas, NV · Member since 2015 · 273 posts · 217 votes
    9y

    @James Wachob I was more talking about "hoods" in general, not really Memphis. Don't have any plans to invest there or Kansas City for that matter. 

  • Real Estate Investor · Kansas City, MO · Member since 2015 · 222 posts · 121 votes
    9y

    I believe every investment comes down to your expectations!  You can achieve different things in different markets... there's many different paths to take with real estate.  Setting your expectations and obviously doing your due dilligence, you have a high chance at success. 

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