Best city/neighborhood to buy

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Best city/neighborhood to buy

Andres Giraldo
Investor · Miami, FL · Member since 2017 · 2 posts · 1 vote

Hi

Im looking to buy a rental property. My investment rationale is:

1. Strong CAP rate 6.5% or plus

2. No leverage used to juice/reach the CAP rate.

3. Investment amount 250k. All cash.

4. No low income areas. I invest in places where I would live if I had to.

5. The state has a landlord friendly regulation

6. Preferably, not necessarily, low state staces.

So which ones do you consider? Any realtor you recommend?

Thanks

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Todd Dexheimer
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
9y

That's a pretty wide open question. Florida would be fine. Most markets would return you that in an average area. Go to Orlando, Tampa, Jacksonville. Also Atlanta, Savannah, Columbia. Almost anywhere in the Midwest will do as well. I like Jacksonville, Atlanta, Savannah, Columbia, SC, Greensboro SC, Greenville, Memphis, Columbus, OH, Cleveland, OH, St. Louis, Indianapolis, Oklahoma City

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  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    That's a pretty wide open question. Florida would be fine. Most markets would return you that in an average area. Go to Orlando, Tampa, Jacksonville. Also Atlanta, Savannah, Columbia. Almost anywhere in the Midwest will do as well. I like Jacksonville, Atlanta, Savannah, Columbia, SC, Greensboro SC, Greenville, Memphis, Columbus, OH, Cleveland, OH, St. Louis, Indianapolis, Oklahoma City

    3Reply
  • Jarrod Benson
    Real Estate Agent · Orlando, FL · Member since 2016 · 23 posts · 6 votes
    9y

    Hey Andres,

    I sent you a message and colleague request 

    0Reply
  • Juan Jackson
    Contractor · GA · Member since 2016 · 268 posts · 54 votes
    9y

    You can get that in Atlanta

    1Reply
  • Jeff Filali
    Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    I wrote about the perfect markets that fit your criteria in my BP blog post earlier this year...

    2Reply
  • Scott England
    Rental Property Investor · OK · Member since 2015 · 316 posts · 216 votes
    9y
    Andres Giraldo Reach out to Kendal James in OKC. He specializes in investor acquisitions and has helped me acquire multiple properties.
    1Reply
  • Kendal James
    Real Estate Broker · Oklahoma City, OK · Member since 2014 · 18 posts · 8 votes
    9y

    Thanks @Scott England

    @Andres Giraldo, I sent you a colleague request if you'd like to discuss the Oklahoma City market and what I do.

    1Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    that's a good chunk of capital... you could leverage it pretty safe and get a few homes or down on some apartments.

    0Reply
  • Ryan Evans
    Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
    9y

    @Todd Dexheimer has a pretty good list going. I'm investing in Cleveland which is an interesting market. It's got class A-F properties like everywhere else, but I'd say the variance is a lot more extreme than some other parts of the company. I wouldn't live in many parts of it, but you can get 10-30% cap rates with a bit of risk tolerance.

    0Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Ryan Evans what size properties are you investing in? I was in Cleveland last fall and looked at some 20-40 unit buildings, but didn't really see much I liked. One thing that turned me off was the 3 brokers I met with told me that there is no good property management companies in Cleveland. How are you managing your properties? 

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Andres Giraldo:

    Hi

    Im looking to buy a rental property. My investment rationale is:

    1. Strong CAP rate 6.5% or plus

    2. No leverage used to juice/reach the CAP rate.

    3. Investment amount 250k. All cash.

    4. No low income areas. I invest in places where I would live if I had to.

    5. The state has a landlord friendly regulation

    6. Preferably, not necessarily, low state staces.

    So which ones do you consider? Any realtor you recommend?

    Thanks

     What kind of investment are you looking for? Flip? Buy and hold? Turnkey? Something else?

    0Reply
  • Ryan Evans
    Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
    9y

    @Todd Dexheimer I've got a duplex and close on another in a few weeks. I've not looked at anything over a fourplex so far, but I hear you with the property management issue. I currently manage myself, but I realize that's not sustainable long term. I've not heard great things about the property management companies in the area and vetted a few myself. None of which impressed me. I do have one property management contact that is a smaller operation on the east side of Cleveland. I'll be hiring her company when the time comes, but I can't attest to how it will go. Shoot me a PM if you'd like the contact info. 

    0Reply
  • Jeff Petsche
    Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
    9y

    @Kendal James I'm also looking at the OKC market. Would you be willing to reach out and share how you can help. I'm interested in applying the BRRRR strategy with SFR and up to 4-plexes with acquisition prices between $25K to $120K.

    1Reply
  • Timothy Murphy III
    Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
    9y

    @Andres Giraldo

    You easily can hit those cap rates in B (or even A) caliber areas of the Cleveland, Ohio market. For $250k cash with no loan you could probably acquire a small (5-8 units) apartment building.

    0Reply
  • Andres Giraldo
    OP
    Investor · Miami, FL · Member since 2017 · 2 posts · 1 vote
    9y

    I am looking for a turnkey investment

    0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    9y

    i love the low end of the okc market.  i find it to perform really well.  the ones you are looking at can cash flow great but you need to really be aware of what you are getting into.  might be good to come out and do a little tour before you jump in full force on that type of property in okc.

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    9y
    Originally posted by @Andres Giraldo:

    Hi

    Im looking to buy a rental property. My investment rationale is:

    1. Strong CAP rate 6.5% or plus

    2. No leverage used to juice/reach the CAP rate.

    3. Investment amount 250k. All cash.

    4. No low income areas. I invest in places where I would live if I had to.

    5. The state has a landlord friendly regulation

    6. Preferably, not necessarily, low state staces.

    So which ones do you consider? Any realtor you recommend?

    Thanks

     I would imagine you could hit those numbers in many parts of Florida.

    0Reply
  • Rebecca G.
    Real Estate Agent · Dayton OH (dayton, oh) · Member since 2016 · 194 posts · 123 votes
    9y
    You can buy multiple properties for that price in Toledo, b+ and a areas only. 8+ cap rates.
    0Reply
  • Adam Adams
    Podcaster & Multi-Family Apartment Investor · Denver, CO · Member since 2016 · 273 posts · 138 votes
    9y
    Originally posted by @Andres Giraldo:

    Hi

    Im looking to buy a rental property. My investment rationale is:

    1. Strong CAP rate 6.5% or plus

    2. No leverage used to juice/reach the CAP rate.

    3. Investment amount 250k. All cash.

    4. No low income areas. I invest in places where I would live if I had to.

    5. The state has a landlord friendly regulation

    6. Preferably, not necessarily, low state staces.

    So which ones do you consider? Any realtor you recommend?

    Thanks

    Andres,

    1. a 6.5 cap rate is horrible. Especially right now. You need to be above 8.5 if you're buying right now.

    2. Note: leverage never affects cap rate. By definition, cap rate is not affected by debt service.

    3. why do you want to do all cash? (sincere question)

    4. good criteria

    5. fantastic criteria!

    6. do you mean taxes? I don't know what staces are.

    Based on your criteria, I'd choose DFW. 

    In Dallas they have great landlord friendly laws, big cap rates, a diverse economy, deals you can get into for 250K, among other good reasons to invest there. 

    Good luck!!!

    -AAA

    0Reply
  • Aleejandro Dela Vega
    Investor · Las Vegas, NV · Member since 2015 · 71 posts · 38 votes
    9y
    Las Vegas hands down. On top of your list you'll get real estate appreciation of about five to ten percent per year. You can evict a tenant in lass than three weeks. And finally it's not in any kind of flood, hurricane, national disaster zone. I've searched up and down and it's hard to find a better investment environment.
    0Reply
  • Lance Robinson
    Investor · Scottsdale, AZ · Member since 2015 · 130 posts · 102 votes
    9y

    @Andres Giraldo If I was in your shoes, I would leverage that money to buy local. I love the idea of all cash. Multi family would be a bit harder, but SFR's could be in your wheelhouse. I'd look for something that you could get a deal on that needs maybe $10K of work at most (not too much of a project, but enough to have good equity in it after.) You may be able to pick up a couple of properties this way (not too familiar with the Florida market and how close to you to find properties like this.) But I would take full advantage of all cash to get a deal!

    Good luck!

    0Reply
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