Best Markets for SFR

13 Replies

I am on the hunt for the next deal but am looking for a market outside my backyard. I think the Charleston market is getting over priced relative to where we were before 2008 so I figure there should be some better markets out there. I'm looking for areas with solid schools, decent population and job growth, with homes in $125k-$150k range and rents in 1% range, preferably in the south or just a place with minimal snow/ice. I've begun to look at Memphis, Oklahoma City and Kansas City but continue to find a lot of mixed reviews from people who live in each place. Not sure if anyone may have some suggestions.

@Bryston Wisekal Sounds like you've been talking with local residents as opposed to local investors in your suggested markets! 

With most markets in the midwest and south, you're going to deal with snow/ice in the winter months. Oklahoma City not as much, but you are trading it off for tornado valley. 

Since I am from Memphis, I may be biased but the market here is strong and you normally can find turnkey properties in your price range that are renting from 900-1200/mo. Between all the distribution companies, shipping hubs and growth here, the rental market looks to stay strong for years to come. 

Good luck with your ventures!

Tulsa is a great market if you know what you are looking for and the school districts are very important.  The 1% rule is easily obtainable if the financing is right.  With rates going up, you got to be able to buy right

Hey Bryston! Are you looking for properties needing work or that you can add value to, or turnkeys?

Originally posted by @Bryston Wisekal :

I am on the hunt for the next deal but am looking for a market outside my backyard. I think the Charleston market is getting over priced relative to where we were before 2008 so I figure there should be some better markets out there. I'm looking for areas with solid schools, decent population and job growth, with homes in $125k-$150k range and rents in 1% range, preferably in the south or just a place with minimal snow/ice. I've begun to look at Memphis, Oklahoma City and Kansas City but continue to find a lot of mixed reviews from people who live in each place. Not sure if anyone may have some suggestions.

If you are looking for Turnkeys, the best markets are in the Midwest.

Try looking at:

The Best Types of Markets for Profitable Turnkey Properties

I'm local to the Kansas City market. Those numbers are obtainable here. Finding a good team and doing your own due diligence is recommended. There is still upside potential in several different suburbs in KC as well. We do occasionally get snow/ice but it doesn't usually accumulate like it does up north. Are you looking for turn key or more of the BRRRR method?

@Bryston Wisekal I'm local in KC and have helped hundreds of investors find their investment properties here!  Last year I sold over 350 cash flowing properties. 

KC is a growing market, a fun place to live as well, and still offers great cash flow opportunities.

Let me know if I can be of any assistance :)

Hi @Bryston Wisekal

If you look at the KC market, there are areas that will get you the 1% rent but you may sacrifice a bit on the grade of property, school ratings or tenant quality.  If you need a local PM company with experience providing rental due diligence, let me know.  We would appreciate the opportunity to help with you grow your portfolio! 

Happy Investing! 

Paul

At that price range, I would say somewhere in the south or midwest is your best bet.

Originally posted by @Bryston Wisekal :

I am on the hunt for the next deal but am looking for a market outside my backyard. I think the Charleston market is getting over priced relative to where we were before 2008 so I figure there should be some better markets out there. I'm looking for areas with solid schools, decent population and job growth, with homes in $125k-$150k range and rents in 1% range, preferably in the south or just a place with minimal snow/ice. I've begun to look at Memphis, Oklahoma City and Kansas City but continue to find a lot of mixed reviews from people who live in each place. Not sure if anyone may have some suggestions.

 My other bit of advice is to avoid the markets that EVERYONE is talking about. You do not want to be last to the party. Try looking at PRE boom cities. Maybe ones investors are starting to talk about, or just maybe not as maybe! Good luck!

Thanks for all the insight everyone! Definitely don't want to be last to the party. Looks like I have some more research to do. Thanks again!

Originally posted by @John Kunick :

Tulsa is a great market if you know what you are looking for and the school districts are very important.  The 1% rule is easily obtainable if the financing is right.  With rates going up, you got to be able to buy right

 the 1% rule and financing are not related.

Hi Eric, not sure how they are not related. Financing will drive PITI and therefore cash flow. True, the ideal 1% is if you buy a $100,000 property you need to approximate $1,000 per month rent (just to use round #'s) in order to make the 15-20% ROI. But, if the financing is too high, then your cash flow goes down and the 1% rule may not work. Hope that helps explain it better.

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