Best Cities to invest in under $100k

Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes

Nooby question here! Does anyone know where I can find a list of or advise me on the best cities to look for investment opportunities (rental) under $100k? Ideally, I would like to start with $50k property but $50k-$100k is my threshold. I live in Los Angeles and you won't get anything in a safe area for $700k+.

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Janett Lewis

Investor · St. Louis, MO · Member since 2016 · 65 posts · 82 votes

@David Waddleton I moved from San Diego to St. Louis specifically for this reason. I have 7 houses here and purchased them all over the past year. I paid 22,000-34,000 and they are all rented from $895-1200. Cashflowing 50% at least after taxes and insurance and maintainence are paid. For $50,000 you can get a turnkey property that’s Cashflow positive! Just have boots on the ground or someone you trust in the area. You could develop a relationship with someone on BIgger Pockets!

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Nathan DeJonge
Rental Property Investor · Ypsilanti, MI · Member since 2018 · 25 posts · 65 votes
8y
To be completely honest David, I would think about what areas you know. I understand that you currently live in LA and that the prices are too steep to enter the real estate game. Did you grow up in another area? Did you go to college anywhere? Any place that you have spent a considerable amount of time would be the first place you should look. This way you know the streets like the back of your hand while having an understanding of who loves where. This knowledge takes years to develop a reliable intuition with. I personally don't believe that this can be gained through off-site research alone. Go with what you know.
Doing this is much better than getting a tip on a city that is probably already old news, exploited, or at the very least unfamiliar. The only other option would be to invest with people that you trust that already know a particular market.
Best of luck!
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David W.
OP
Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
8y
thanks Nathan,
Everywhere I have grown up - Vancouver, Pittsburgh (hate that city), Baton Rouge has changed so much i.e. Baton Rouge after the hurricane is SO different when I visited it. I am starting to read "Long Distance Real Estate investing" but would like to start to check out cities that would be a good place to look. A $50k house is not the end of the world where trying to save up for a 1 million dollar property here in LA will allow you no room for error and you will not be cash flowing I can pretty much guarantee you unless you found a diamond in a rough.
Let me know if anyone has any insight on cities/regions that are affordable and would be a good place to start researching!
8 Reply
David W.
OP
Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
8y
Ok, why are you selling them? Let me know the details thanks.
6 Reply
Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
8y
Originally posted by @David W.:
Nooby question here! Does anyone know where I can find a list of or advise me on the best cities to look for investment opportunities (rental) under $100k? Ideally, I would like to start with $50k property but $50k-$100k is my threshold. I live in Los Angeles and you won't get anything in a safe area for $700k+.
Your Question: "best cities to look for investment opportunities"
This link below has an interesting take, it won't answer all of your questions but it will give you a basis for having the discussion. I looked at CA originally. You know the drill, San Diego, Carlsbad, Temecula, Riverside etc and the numbers just didn't work for me. Some people are chasing Cleveland, Memphis and Nashville. Too risky for me if I can't drive to the property and see the streets near by and know the neighborhood. But, learn how to run the numbers and you can then select the location.
https://www.biggerpockets.com/forums/600/topics/58...
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David W.
OP
Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
8y
Hopefully, the Long distance Real estate investing book will have some insight. I just started it but so far it is saying you don't need to walk by the property, you don't even need to see the property in real life. All the information is from crime demographics, walkability, school ratings, population, jobs etc but I just started it so I don't know how to apply it all yet.
1 Reply
Tinley Jones
Rental Property Investor · San Diego, CA · Member since 2018 · 35 posts · 39 votes
8y
Hi David,
I live in San Diego. I'm just starting out and I have been looking at Indiana. Indianapolis, Bloomington, and Evansville.
Hoping to close on my first duplex soon at around 60k
Good luck!
23 Reply
Brian Garlington
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
8y
I'd look at Cleveland.....next I'd look at Cleveland....if that doesn't work out....look at Cleveland like I did.
Agents and PM's at Holton-Wise......like I did
31 Reply
Account Closed
Investor · Leander, TX · Member since 2016 · 299 posts · 402 votes
8y
Originally posted by @David W.:

Hopefully, the Long distance Real estate investing book will have some insight. I just started it but so far it is saying you don't need to walk by the property, you don't even need to see the property in real life. All the information is from crime demographics, walkability, school ratings, population, jobs etc but I just started it so I don't know how to apply it all yet.
This is true, I have 4 properties in 3 different states that I've never seen in person, one is in a state I've never even been to.
This is 2018, and with today's technology and on demand economy it is possible.
11 Reply
Spencer Cantrell
Rental Property Investor · Green River, WY · Member since 2017 · 2 posts · 15 votes
8y
@Tinley Jones Hi, I live in Wyoming and I'm new on Bigger Pockets. My wife and I have a 4-plex out of state that we have never seen and are finishing up our second flip property. I am looking for another multifamily property and really like the Indianapolis area. I've heard good things about it, but have no idea who to contact as a realtor or property manager. Do you have any recommendations?
15 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Marcus Tukes:
@David Waddleton Hello David me and my group come across $50-100K properties all the time I’m a local wholesaler and investor based out of Atlanta, Georgia but also, do business iN lower markets that’s up and coming for example we have a rental asking $9,000 iN AL rents $750/mo vacant at the moment minor TLC let’s talk if you’re interested thanks.
markus if your going to advertise you need to get a pro membership. also anyone buying a 9k home in those areas mine as well throw there money down the toilet
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Alpesh Parmar
Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
8y
@David Waddleton I live in Bay Area and have been investing OOS since 2015. I didn’t know anything about the cities when I started investing. Now, I fly to the city, build my team and focus on certain neighborhoods in that city. I would say pick 5-10 cities and start researching about employment, neighborhoods and rents etc. you can focus on mid-west or sun belt cities to get started.
26 Reply
Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
8y
What kind of property are you wanting to buy? Something you want to put work into or more turnkey?
3 Reply
Mitch Coluzzi
Investor · Des Moines, IA · Member since 2014 · 238 posts · 230 votes
8y
@David Waddleton - Des Moines IA is empirically a good market to enter both in the low and high end ranges. We even have a few pockets that offer sub $100k SFD investments with solid cash flow. Let me know if the market interests you and I can send you more info. Make sure you find good management if you plan to invest remotely. Simple things like rental certificates can be a bear to coordinate from a distance. Cheers!
11 Reply
AJ Singh
Rental Property Investor · Orange County, CA · Member since 2016 · 513 posts · 374 votes
8y
@David W.
i am not too sure if you can find a decent rental in $50k range in any of the cash flowing cities.
$100k will get u a better neighborhood house which will translate into decent cash flow. whichever city you choose, make sure to take a trip and check the neighborhoods.
Do not buy unseen regardless of some peoples comments about never checking out houses.
Also make sure to get a third party inspection..
9 Reply
Fernan Nava
Rental Property Investor · Barstow, CA · Member since 2015 · 131 posts · 102 votes
8y
@David Waddleton. It all has to do with ur grand plan. But as for pricing lower than 100k. The closest area to LA with those prices is small towns in the high desert area in southern CA. Think Barstow, Mohave, Cal city, and such. Good luck.
1 Reply
Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
8y
Originally posted by @David W.:

Nooby question here! Does anyone know where I can find a list of or advise me on the best cities to look for investment opportunities (rental) under $100k? Ideally, I would like to start with $50k property but $50k-$100k is my threshold. I live in Los Angeles and you won't get anything in a safe area for $700k+.
Well, $50k in a decent area where you won't have trouble may be difficult to find these days. However, for under $100k, I would suggest Cleveland or most other Midwestern markets. Things are going well and the rent is going up!
6 Reply
Yasuha J. Dorce
Realtor · Miami, FL · Member since 2018 · 53 posts · 23 votes
8y
@David Waddleton Try Jacksonville, FL
7 Reply
Caitlyn Hummer
Turnkey Investment Provider · Columbus/Dayton/Cincinnati, OH · Member since 2018 · 79 posts · 41 votes
8y
Hot markets for turnkey right now are Memphis, Dayton (my market) and Indianapolis. If you partner with the right turnkey provider, distance should not be a concern. To ease your mind, fly to the market for a visit. Any reputable turnkey company is going to be more than willing to take you around the city and show you properties they're working on. Plus, isn't a $500, two-day trip worth it when you're making a large investment.
10 Reply
Janett Lewis
Investor · St. Louis, MO · Member since 2016 · 65 posts · 82 votes
8y
@David Waddleton I moved from San Diego to St. Louis specifically for this reason. I have 7 houses here and purchased them all over the past year. I paid 22,000-34,000 and they are all rented from $895-1200. Cashflowing 50% at least after taxes and insurance and maintainence are paid. For $50,000 you can get a turnkey property that’s Cashflow positive! Just have boots on the ground or someone you trust in the area. You could develop a relationship with someone on BIgger Pockets!
46 Reply
Christopher Dieujuste
Rental Property Investor · West Palm Beach, FL · Member since 2018 · 5 posts · 2 votes
8y
@David Waddleton Indianapolis
2 Reply
Jeff Schechter
Developer · Nashville, TN · Member since 2016 · 484 posts · 406 votes
8y
@David W. Indianapolis, Cleveland, Columbus, Cincinnati, Dayton. That pocket has some of the best price-to-rent ratios, reasonable taxes, and landlord friendly laws....IN being a little more favorable than OH. We've been VERY successful in Indy in the price points you mentioned. Feel free to PM me if you want more info.
19 Reply
Andrey Y.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
8y
Originally posted by @David W.:

Ok, why are you selling them? Let me know the details thanks.
Very poignant question. You should try to see the nuance in your very astute question.
Cash flow is not profit. OTOH, LA has been a very profitable market for decades.
1 Reply
Lee Taylor
Investor · Warner Robins, GA · Member since 2016 · 112 posts · 70 votes
8y
@David Waddleton I live and invest in the Warner Robins area of Georgia where the returns and economy are very strong. I wholesale some, but try to keep as much as I can. An example of a deal I’m currently rehabbing: purchase of $17,000, rehab of $7,500, rents for $650/month.
8 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
8y
Originally posted by @Jeff Schechter:

@David W. Indianapolis, Cleveland, Columbus, Cincinnati, Dayton. That pocket has some of the best price-to-rent ratios, reasonable taxes, and landlord friendly laws....IN being a little more favorable than OH. We've been VERY successful in Indy in the price points you mentioned. Feel free to PM me if you want more info.
Great point. columbus you can get a duplex for 75k that rents for 650 per side all day long. Take your pick, there are probably 20 for sale right now in our market like that. you are in C neighborhoods and management is important but they exist for sure.
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Michael Swan
Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
8y
I prefer presently NE Euclid, NE of the brand spanking new Fulfillment Center and Lake County. You can get a 1/2 duplex for $40,000-$45,000 that rents for $775-$825.00. This is a no brainer, strong C class good working class blue collar area and then just keep going east. Lake County is a strong C+ area that I would highly recommend too. Go as far east as Painesville in Lake county. Some other areas of Cleveland are really hyped and don't command these rents. I have 82 front doors in Lake County and rising!! I have on 12 unit in NE Euclid too. Lake County, Ohio is extremely landlord friendly etc... Also, I have seen 50% appreciation in the last 3-4 years too in these areas for Single Family, condos, townhomes, and duplexes too. They are getting hard to find and you have to move quickly now. Plus , this area has been seeing more manufacturing jobs and machining type jobs too, besides the brand new Amazon Fulfillment center opening early in 2019.
That's just my 2 cents. Take it or leave it.
Swanny
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