I need suggestions about where to invest

Buying & Selling Real Estate
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I need suggestions about where to invest

Glen Rosen
Select a State · Member since 2010 · 26 posts · 7 votes

Hello,
I'm looking to invest in real estate in Texas, Florida, Nevada or Arizona. I want an investment property, either a house or condo, and I want to spend about 100k to 150k. My first choice would be a two bedroom condo, but I could accept a one bedroom condo or a small house. I want to get something in a city that isn't too small, one with jobs that will continue to attract people. Or at the least, I want to invest in a city that won't be losing too many more jobs in the future. I'm hoping for a state that doesn't have too high property taxes, but I'm willing to accept one if there are other good reasons to invest there. Do you think now is a good time to invest, or will prices continue to fall? Where do you suggest I invest? I plan on putting down up to fifty percent down payment and my credit is fine, so it shouldn't be very hard to get a loan, hopefully. If you are an agent, please give me your contact information, also let me know if you know a great agent. I'll thanky you in advance for any information you can give me.

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Josh Green
Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
16y

i'm with robert....i'd say away from condos/townhomes....they can bleed u dry!

what are of FL are u considering?

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  • Robert Mack
    Real Estate Investor · Bergen County, NJ · Member since 2008 · 390 posts · 72 votes
    16y

    Hey Glen,

    Where are YOU currently living? Maybe you could find something in your backyard to invest in. Long distance landlording can be risky for anyone, especially just starting out. You need to be pretty familiar with the area you are investing in.
    I am currently in FL, and I wouldn't invest in condos here. The HOA fees mean that you never really have full control of your investment, plus you have the risk of the HOA shutting down certain amenities if the building doesn't have enough residents to pay and upkeep, or raising dues or basically anything they decide to do.

    I moved from NJ, and studied the FL market about 6 months before deciding to make the move. I also reached out to local investors here. I'd suggest doing the same - researching the areas you want to invest in and flying there to check them out yourself also. There are people on this board who invest in TX,FL,NV and AZ so seek them out and lets talk

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  • Josh Green
    Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
    16y

    i'm with robert....i'd say away from condos/townhomes....they can bleed u dry!

    what are of FL are u considering?

    2Reply
  • Ted Harris
    Real Estate Investor · Portland, OR · Member since 2009 · 660 posts · 244 votes
    16y

    Stick with SFRs! Condos & townhomes bring a whole host of potential issues ... special assessments, unfriendly landlord HOAs, lower appreciation, tougher lending requirements, inventory glut, etc.

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  • Scott Hubbard
    Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
    16y

    I agree... SFR's without HOA's are the way to go.

    0Reply
  • Marc Freislinger
    Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
    16y

    Indianapolis has multifamily properties, in a big city, plenty of jobs. You can pick up 2 or 3 cash flowing duplexes for $150k.

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    16y

    Folks, this is a discussion forum, so no offers of "if you're interested in such and such location, contact me", please. Glen, if you're looking for deals, please post in the Make Deals or Property Wanted forum.

    My advice would be to invest within whatever distance from your house you consider to be an easy drive. Long distance investing has a whole additional set of issues over and above all the ones that come with landlording anyway. At least cut your teeth close to home. At a distance, you're, at the very least, going to give up 10% of your gross income to a PM. More likely, its going to be higher than that since they will charge your a half month to a full month for every turnover. A minor item that would take you five minutes to deal with, and maybe cost nothing, or no more than $10 will end up being $100 for someone to come out and take care of. If you're going to do long distance investing, you will need an especially juicy deal. Those are out there, but you're going to have to work to find them. Read about the "50% rule" in the rental property forum, and only buy a property that cash flows when you allocate 50% of the gross rents to expenses. Expenses does not include the P&I payment.

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  • Robert Mack
    Real Estate Investor · Bergen County, NJ · Member since 2008 · 390 posts · 72 votes
    16y

    Hit that + sign if you agree Josh!! :lol:

    And Glen, always take what other people say with some skepticism and do your own research to confirm/deny their claims!

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  • Carlton Ellis
    Real Estate Consultant · Lansing, MI · Member since 2010 · 117 posts · 32 votes
    16y
    Originally posted by Ted Harris:
    Stick with SFRs! Condos & townhomes bring a whole host of potential issues ... special assessments, unfriendly landlord HOAs, lower appreciation, tougher lending requirements, inventory glut, etc.


    If his primary interest wasn't condos I'd suggest the Dallas/Forth Worth area. However there is a condo market in the downtown area that has shown signs of vibrancy in the past five years.

    This area hasn't expreience the degree of economic downtown that many other parts of the country have. The employment market is one of the strongest in the country and real estate prices have not slipped as much as other parts of the country.

    The issue in the Dallas/Ft. Worth area is that $100,000 to $150,000 is either going to buy you a smaller home in the area or older housing stock if you go for a SFR. In the downtown Dallas area a one bedroom condo is avialable that price range. A two bedroom condo might also be available but much more difficult to find.

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  • Josh Keys
    Accountant · Sydey, NSW · Member since 2009 · 105 posts · 24 votes
    16y

    Agree with what the others have said. Better off buying a SFR or multi units rather than condo as investment. $100-$150k could get you some great 4-8units in the mid west that would be in a positive cash flow position. I saw a number of fourplexes in Cleveland, OH recently for $70-$80k fully occupied, bringing in $20k per year in rents. Just depends on how fixed you are on the areas you originally mentioned.

    I think i remember you saying you based are in China? As a fellow international investor I think it is going to be hard to see you making alot on SFRs, once you deduct the necessary mthly mgmgt costs etc. That is why I started looking at multiunit properties. So far it has appeared to be the best bang for buck in my opinion. Others will disagree and say you should start with a SFR in case you need to sell (which is usually harder with a multi due to a smaller target market). They probably dont have to give up 10% of their rent in management costs!

    Suggest doing detailed online research. I used yahoo real estate and www.homefinder.com to get info on vacanacy rates, crime stats, local schools. Comparable sales on www.trulia.com MLS and craigslist. Avg cap rates on www.loopnet.com, www.investorloft.com. These websites are just a guide and are no subistitte for visiting the areas, meeting with agents etc but are a great place to start. As is BP!

    Good luck.

    1Reply
  • Nate Cadwell
    Real Estate Investor · Tulsa, OK · Member since 2008 · 8 posts · 7 votes
    16y

    I agree with a lot of what has been said. Definitely - education and research are the keys to a succesful investment.

    I believe now is a great time to invest...if you have the education and are prepared.

    Single family is what I have worked with and specialize in. But I do understand the benefits and negatives to multi-family...

    Also, the biggest key is to network excessively with real estate professionals in whatever location you choose. Identify the primary people you will be working with - realtor, attorney, title company, contractor, etc.

    Good luck!

    0Reply
  • Account Closed
    Private Financing Consultant · Honolulu, HI · Member since 2010 · 132 posts · 27 votes
    16y

    Glen,

    Sounds like investing locally is probably safer. Not to say any of the states you mentioned won't be more profitable, but at least when you are near the property you are familiar with the market.

    If you are investing in only 1 or 2 houses to being with, all you need is the 1 or 2 family that will either buy or rent those homes. Know your re-selling or holding strategries and the margin that you wish to make then you will be good to start looking.

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