Best Real Estate Markets Post Depression

Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes

I haven't seen much discussion on targeted real estate markets and I don't see this category on the forum. Rich's post caused me to wonder what RE markets everyone thinks are the best to invest in. Where are you investing and why?

What does everyone think of the Austin market? I am too close to the city to evaluate it without prejudice.

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Vikram C.

Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes

16y

I think the best city is going to depend on what your investing strategy is. If you are buying at trustee sales, for example, you would want a city where prices had gone up a lot during the bubble and then collapsed. If you are a landlord, you would want a city that is expected to have significant job growth over time. Some mid-western cities also seem to be good for people who buy very cheap homes and then rent them for very good cash flows, although it is not clear what the long-term trends are for those cash flows.

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Account Closed
OR · Member since 2008 · 1k+ posts · 845 votes
16y
For buy and hold, my area (Bend, Oregon)is good: endless sunshine, ski mountain, 30 golf courses, excellent infrastructure, and all the baby boomers still have to retire sometime.

This area has a history of roller coaster real estate prices: high highs and really low lows. Right now, there some really incredible bargains in real estate.

It's always been a tough area for landlords. Rents never keep up with sales prices and, at this time, someone apparently has drained the tenant pool, leaving an awful lot of sludge and not much else.

Still, it's typical real estate around here and a good market for those who like to buy low, hold a bit, and sell high.
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Bryan Hancock
OP
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
What is there to do in Bend, Oregon? I have heard that Oregon is a poor state in general. My wife's grandmother lives in Eugene and told us that at least.

I have drive through Oregon, but never stayed. It seems like a pretty area of the country.
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Paul Beauchemin
Real Estate Investor · East Aurora, NY · Member since 2009 · 70 posts · 22 votes
16y
As a resident of the greater Buffalo area I won't tell you whether or not to invest here. But here are two thoughts:
1- we never had a real estate bubble, so prices are very low relative to other areas. Property values have been increasing 2-6% for the last decade and this trend did not stop during the great real estate collapse in the rest of the country
2-prices are low enough that its very easy to buy a property that cash flows well
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Mark UpdegraffBusiness Member
Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 696 votes
16y
Upstate NY never had the run up. Easy to find properties that are CF positive. However, most upstate cities are losing jobs too... that said, there still seems to be a trend of people moving back from the burbs due to commuting costs & proximity to entertainment. I think Buffalo is solid for rentals if you get into a good area. There are also flip candidates, but beware the ghetto. Prices were never high, and are beat back a bit now.

Good luck!
Mark

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Armand R.
Real Estate Investor · La Jolla, CA · Member since 2010 · 16 posts · 1 vote
16y

"San Diegoâ€¦.
Washington, D.C."

Really? Post Depression?

I'll have to research Mr. Yun's accuracy on past predictions, as I live in San Diego, well, La Jolla, and I'm from DC/Potomac, and neither market would I list in the top 20 post-big-recession.

DC has the BRAC [military base realignment concentrations from closing military bases] plus of course the government expansion to stabilize housing prices and rents -- but that means in a market correction, there was less loss of value and fewer foreclosures than national average -- so MANY other cities have far better cash flow numbers for multifamily properties than DC, for our market [b and c undervalued multifamily]

So, I'll assume Mr. Yun is crunching numbers for a different market niche!
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Jeff TumbarelloPro Member
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
16y
Originally posted by Matt Eilers:
Here is some thoughts on markets.

According to a presentation by Lawrence Yun, head economist for the National Association of Realtors, these are the top flourishing real-estate sectors in the United States:

San Diego, Calif.

Orange County, Calif.

Houston, Texas

Buffalo, N.Y.

Washington, D.C.

Columbus, Ohio

I would Google Mr. Yun and look at his last 5 years worth of projections. He is a great contrarian indicator at best :D
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Jeff TumbarelloPro Member
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
16y
Originally posted by Craig Rader:
Why the negativity about Columbus? I'll be relocating there in about 6 months to begin investing, and the strategy I'm looking at will be buy and hold, with the intent of renting. There seems to be a ton of inventory right now, and I'm seeing most of the homes listed on the HUD site and others are selling for much lower than listing. So the deals are there. In a city like Columbus, which some of you don't see as worthy of the top 5, what would be the best investment strategy? I don't plan on flipping and my plans are to hold the properties for at least 3+ years. Should I focus elsewhere? I'll be living in Columbus, so naturally I intended on focusing on that area. Now maybe I should rethink my strategy.

Any advice on the best investment strategies for Columbus, OH (in this market, and throughout 2011) would be appreciated!

I was in Cbus in 2007. Did a little business. I was also working for a bank ( I went home when I realized I was not a midwest banker :lol: )
For Cash Flow I realli like North Linden about 3 blocks North of Hudson.
Linden has a large Somali population that is also Muslim. They can not pay interest on a mortgage. They are great Lease Option Tenants.

You have the truck route around the city. Inside and out are 2 different Markets. Pay bigtime attention to the distance of your comps.
The area can change in 2 blocks.......
DRIVE every comp.....

The rating of the school districts means a lot to the values in an area. Al;ways check that.

It is a great town. I really enjoyed my time there it just was not home :idea:

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Jeff TumbarelloPro Member
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
16y
Originally posted by Bryan Hancock:
I really know next to nothing about Ohio except that my hornz were virtually universally in agreement that Ohio State fans are the worst fans on planet earth absent possibly OU fans.

I think everyone down south associates Columbus with the rust belt type of work and the auto industry. I have no idea if that is accurate so it is nice to see some views that differ so that I can get educated.

What is the primary industry in Columbus? I think it is still slightly bigger than Austin and they are both big college cities from what I gather.

Cbus has a lot of things that allow money to remain in motion
State Seat
County Seat
Nationwide Insurance call center
JPM has 2 small citys there :D
There is a Honda Plant
OSU

That is just a light fly over of what is there. Recently it has had zero population growth which in the midwest is a population boom......
1 Reply
M Layne
Commercial Lender · Baltimore, MD · Member since 2010 · 1 post · 0 votes
16y
http://dallas.bizjournals.com/dallas/stories/2010/07/26/daily25.html?s=industry&i=economic_snapshot
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Diane J.
Real Estate Investor · Aurora, CO · Member since 2010 · 175 posts · 92 votes
16y

Beautiful dreamer!

As much as I love my native California it's a natural disaster waiting to happen. Great climate but man, it's crowded.

Some of the largest data centers are located in the Midwest because of geography relating to loss prevention.

Those that didn't lose their farms in the last depression were able to grow enough food to survive and those that spent their time in the bread lines look for security in owning land. Agriculture requires sunshine and plenty of water, and Texas has it in spades.

Of course, if the poles shift all bets are off!

:crazed:
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Bryan Hancock
OP
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
I always think sunny places are a safe bet...Phoenix WAS booming until recently. I stay away from places in California with rent control laws and don't really like investing there period with prices sky high.
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Waaay up there were the key words, IMO, know your market. There is profit to be had in every market, regardless of the sun shinning or if it's cold (but it's a dry cold, lol).

Each market presents unique opportunities. There is plenty of sound advice and basis for not following the crowds.

Buffalo is a great place to invest, I assisted an investor there and saw plenty of deals, for the buy and hold folks. If Austin or Ft.Worth is hopping with sales, consider flipping.

Yoiur market depends on your strategy as mention above, I think.

I think investors can get into trouble chasing greener pastures and not being aware of market fundementals, social, economic and cultural aspects of the area. I don't see how an investor can be intimately knowledgable in many areas. Basing investment decissions on trends today or buying in Gulf Port just because it's warmer is a mistake, IMO.

And, as Tim pointed out, but maybe few caught, things can happen in an area that can happen that can empty your investment....and then it can happen in reverse as well. Prepers know what I'm saying here, but then that give rise to diversification as well.

Bottom line, the is profit in all markets if you know how to pull it out.
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Bryan Hancock
OP
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
I agree that there is money to be made in any market if you know them well. There is also easy money to be made in markets with great fundamentals where any idiot can buy there, hold, and make money. Since I consider myself one of those idiots I was wondering what markets other people like to see if it was worth investing elsewhere. I like to stay in Texas because I like the laws here and know them well.

Contrarian investing is a good play IF you think everyone else is getting is wrong. Money often follows good market trends so being a contrarian isnâ€™t always the right play.
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Diane J.
Real Estate Investor · Aurora, CO · Member since 2010 · 175 posts · 92 votes
16y

I'm pretty sure you're talking about me! :lol:

After 14 years in Colorado I'd rather pay for cooling than running the heat for 8 months of the year. Looking into geo thermal when I find my dream property.
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Account Closed
OR · Member since 2008 · 1k+ posts · 845 votes
16y
[[[,,,What is there to do in Bend, Oregon? ..]]

2 ski mountains, 2 more in day trip distance.

Hiking, camping, cross country skiing, snowmobiling, snow boarding, white water rafting, boating, river and lake fishing, fossil hunting.

Technical rock climbing, 30 golf courses, hundreds of miles of bike trails.

At least 3 National or international Bicycle races of at least 3 different kinds. (Road, cross country, and this odd one where they carry their bikes over obstacles)

Art and music festivals every week, free concerts weekly in the summer, assort food festivals, several boutique brewers for a beer tour.

Great shopping, no sales tax.

Quilt festival that brings in over 30,000 visitors every year, Lots of interesting fund-raisers (one where they bring in 8 famous chefs and each chef cooks one course).

A philharmonic orchestra. Or if your tastes run the other way, monster truck rallies.

Rodeos, cuttings, horse shows, and a National Hunter Jumper show. Something every week at the fairgrounds.

A very good college with lots of interesting classes on offer. Lots of ecological types of volunteer work, with nice people (easy to make friends)

Farrmer's market, assorted street fairs and parades.

Lots of activities for children.

Our world famous Pole Peddle Paddle, combo race that involves skiing, running, bike, and kayak. It brings contestants from all over the world.

Olympic athletes train here; you an watch.

Did I mention stunning scenery and endless sunshine? Oh, and a low crime rate.

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Patrick Karbon
Residential Real Estate Agent · Denver, CO · Member since 2010 · 73 posts · 36 votes
16y
I'm supprised nobody has mentioned Detroit but I guess that's a good thing for us. As Vicram and Charles noted, you have to know your market. Dispite the negativity that most associate with the city and Metro Suburbs, there are some of the best real-estate deals around for people that live and work here. The simple fact is that most people from Metro Detroit are looking for ways to stay or move back and help build it up to it's better days. True, the economy's down as a whole but here we've been able to maximize a balance in providing Land Contract Home Buyers great value with affordable downpayments and our Note Buyers with very attractive returns.

I'm afraid I don't know Austin well enough to comment but all my friends from there and who have moved there say they love it. I have to assume there's some kind of increase in demand as the city becomes more and more hip.

Great topic!

Patrick
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Mark Bradley
Real Estate Coach · st louis, MO · Member since 2010 · 3 posts · 2 votes
16y
In every city there is going to be parts that stay strong and prices held up during this government real estate caused crises.

If you have realtytrac service they put flags up on a map that tells where forecloses are. Look at parts of your target city that have no flags!

That might be a good part of town to invest in. Okay, I'll give away this secret.....invest around colleges...no flags.

Mark Bradley

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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Yes, any idiot should be able to make money within a couple of miles of any state or large private college/university, lol. I know I did!
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Bryan Hancock
OP
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
In Austin anything near UT is primo real estate and will stay rented come hell or high water.

I think the people that are reading this thread realize money can be made anywhere. The point of the thread was supposed to be trying to figure out what marketst people thought would be the best over the next 5 or so years.
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