I need a new market!

10 Replies

I'm searching for my next market foray.  Tips?  I've been doing mostly small multifamilies.  Target acquisition price <200k mostly for duplexes, couple fourplexes.  Here's my experience so far, in no particular order:

1.  Huntsville, AL: Love the market.  Have enough here.  Always open to more but don't want to lay too many eggs in one basket.

2. Cleveland, OH: Good deals to be had. The taxes and POS scare away many people but if you have the means to deal with them and factor in taxes, you can still make >11% COC fairly easily. Have a few properties here, the holton-wise neighborhood grading system helped incredibly. Could go for a few more, but like Huntsville, don't want to lay too many eggs in obe basket.

3.  Indianapolis, IN: Hot market...too hot.  Looks like the best deals are downtrodden and renovation required.  Trying one now, will see how it goes.  New territory for me.  Buy and hold, hard to find 1% rule, best way to make money seems to be the rehab.  Also, looks like appreciation is being priced in.

4.  KC: Similar to Indiana.

5.  Memphis, TN: Don't have a good boots on the ground team.  Also, multifamily seems a difficult route here.

6. Detroit: Scared of the market here. Did one SFR and waiting to see how it performs.

7.  San Antonio: Hot market, lots of competition, keep getting beat out.

I have a few sub 70-80k houses and not thrilled about them.  Waste of a mortgage given the fees involved.  I prefer to jump up above 100k for a duplex or more.

Thoughts?

I would suggest to stay away from memphis as it is the eviction capitol, and generally has a terrible reputation on this side of the state. Look at the realtor.com article just came out on small cities poised to be big, Knoxville,(i am in suburb of knox) made the list so it must have some merit:)

https://www.realtor.com/news/trends/small-cities-could-become-next-powerhouses/

Don’t be scared off from Memphis. A lot of posters here have money in Memphis. There is a large renter base to keep occupancy if you can find a solid property in a solid area. That’s the key to Memphis. Plenty should pop up here soon to weigh in. Check out Chattanooga and Atlanta around the airport as well. Atlanta still has a lot of untapped potential and Chattanooga is getting a lot of spill over from Nashville and Atlanta. Added 20k jobs the last 2-3 years.

Atlanta, Georgia area, low property taxes, affordable housing, and a low cost of living. 

North Carolina in the research triangle area is booming and I would also add Florida in the Orlando and Tampa areas.

Good luck

@Shiv Jey I would agree with you that in general multifamily in Memphis going to be difficult in memphks for an out of stater. Try to stick to above 750 in rent there, for anything you buy.

@Shiv Jey definitely take a look at the Raleigh-Durham numbers (aka The Triangle). There are a decent amount of duplexes and other 1-4 unit opportunities here at 1% rule. Immediate cash flow yes but also huge long term equity potential. 

@Shiv Jey Welcome to BiggerPockets! It is great to have you and please feel free to jump in the community - there are certainly great people around here. Have you looked in the Milwaukee market ? Get great returns on your buck.

We started in Phoenix and are transitioning out due to pricing.  Bought several SFRs in Milwaukee but that market is getting popular as well.  I seem to have 1-2 people a week now reaching out to ask for PM advice in Milwaukee and thinking we need an additional market due to 1) pricing and 2) diversification.

Fort Wayne IN still works for us but is getting pricy and with lower rents maintenance and eat into profits - Would like to start converting this properties to seller financed deals over the next few years.

Hey @Shiv Jey ,

Check out the market down here in southwest Florida (Tampa/St.Petersburg/Lakeland). It's a hot market down here. Multifamily properties may be tough to come by but they are definitely here. Good cap rates, a lot of purchase prices under 200 (for duplex's anyways).. If you'd like to chat further let me know!

Mike