How to pick a location...

4 Replies

Hi there. I am looking to invest in my first property and as most of you likely felt early on, it can be a bit overwhelming. I am looking to buy and hold a single family home via either short term or long term rentals. 

So far I have been looking at Bend, OR, Sunriver, OR, and Palm Sorings CA.

For example: In Sunriver, OR I am finding that it might be difficult to pay off my mortgage and monthly expenses via renting which to me seems like it wouldn’t be a smart investment then. 

A couple questions come to mind:

1. Any advice for a first timer? 

2. How did you determine which location was the best place and has the biggest ROI for your first investment property?

3. If I won’t have a positive cash flow each month, is it a smart investment?

4. Which markets are the best to buy in currently?

Thank you for the help!

1. Continue to educate yourself, stay committed, network

2. "Best" is subjective. What are you looking for? 

Cash flow = South and Midwest

Capital Appreciation = Coastal Cities

3. Typically not a good investment, especially for a newer investor trying to create wealth through cash flow. This method can work with experienced investors, whom have capital to tie up for long periods of time.

4. Subscribe to Mashvisor.......Just joking. In all honesty this is the golden question which all investors always try to speculate. Just find the one market which provides a team you can trust, and numbers that work.

Best of luck!!

@Jenna Gollands You make your money when you buy a deal.

Know when to walk away - the numbers don't lie! + If it’s not a Heck Yeah, then it’s a No! (keeps you from jumping in on so-so deals/properties/etc)

This holds especially true when starting out: The best deal you can do is the one you decide to walk away from.

First three rules of real estate investing: location, location, location. + Location: the only thing about a house you can't change.

If your offer has a bunch of zeroes in it, it will be shot down like the balloon it appears to be. Make it at least appear like you did a detailed analysis.

It’s not the quantity that matters it’s the quality! And due diligence for the latest deal is more important than the deal itself!

Budget ... That's your driver. I'd love to invest in a major coastal metro try to get some appreciation, but my budget doesn't support it.

It does support the Midwest though, easily. Even with a vacancy it won't put a dent in my lifestyle. Last thing I wanted was something I could hardly afford, that's a ticking time bomb toward disaster.

I am flipping in CA... but when I buy, I will target MF in the midwest or its close cousin.  a B fourplex here that rents for $3500 a month is $500k.  a fourplex in a B midwest is $250k and rents for $3000... not hard to make that choice.