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+.
@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!
The one city I know that is the worst is Kansas City. You should all stay far, far away from KC. : )
What part of KC is to be avoided, Westport is red hot, North of the river hot, down towards Bartle Hall booming. Having said that I avoid that area because I do not need to go there.
Know folks who go to this area and do fine. The ones that get burned trying to make C, D areas with too much risk and they get burned. Hell, you can say this about any big city in the USA
I stay in the burbs do just fine I wait for the deal then try to move on it mainly B to A areas.
It's been said already, but Cleveland has many opportunities in the $50K range. To start, check out Garfield Heights, Warrensville Heights, Maple Heights, Bedford, and Bedford Heights.
@David Waddleton
In the past six months I have sold residential properties in Oklahoma City to investors at prices from $48,000 to $82,000, which is the sweet spot where I specialize as an Oklahoma Real Estate Broker. I choose to work with accredited investors. These deals go pretty fast. See also my website: www.mullrealestate.com. Be wary of unqualified wholesalers & good luck in your endeavors!
Milwaukee is a slow growing city. Downtown is undergoing revitalization, and the city is starting to attract college students who moved there following jobs.
Milwaukee homes had a median list price of between $150,000 and $155,000. There was a median price per square foot of roughly $110. A large share of the Milwaukee real estate market consists of starter homes and small single family properties perfect for renting out. And you can buy several of these properties with the profits from one condo in a hot California market.
Luxury markets like the Upper East Side of Milwaukee had a median price of $350,000, a price well below the price tag for mid-market home in hot real estate markets.
Another added note: A recent law passed will protect the right of home owners to rent out their homes on AirBnB and other rental sites.
David the Market in Metropolitan Milwaukee is hot!
@ErinElam The class really depends on the price point, in my option you can find B-, C+, and C within the 100k price range, 60 and under are more C class, 60-85 would be more C+, and 85k+ you can start to see more B to B minus properties.
@David Waddleton we’ve actually been able to find some great MF deals in Northern CA this year... investing in CA is possible if you have the time and patience to look! Forbes recent list of best rental cities to invest in had 3 CA cities in the top 15... now that’s just some metrics and lists are just lists, but my point is folks in CA don’t have to look OOS. There are deals everywhere. IMHO
I'm surprised to hear so many out of state investors pleased with their never-seen purchases. I really recommend taking a trip to visit the area before buying. I have a property in Baltimore that someone in Cali thought was worth 90K because it rents for 900/mo. When you factor in the neighborhood (riot ground zero), fees, and high maintenance, it's probably only really worth 30K. I probably should have sold it to him, lol, but I plan to be famous one day in the real estate space and I don't need that on my conscience.
Yes I did buy from HW. In fact they now manage all 6 of my units in Cleveland. I had some pretty bad experiences with a couple of other companies out there.
@Colleen Prescott Even though you just moved from Oakland to Concord we are still "neighbors" because I have a rental out there also. :-)
@David W. I would suggest start networking and reading about other areas. I have found my self lately travelling to see properties in different states lately. Also when I am on vacation in different states or areas, I tend to schedule showings with a local agent who also invests in that area.
I would say that your best bet would be to analyze the rental cost of a few areas and also pay close attention to growth of population and workforce as well as schools. Each city have different price range and different areas within each cities has different growth potential.
I am a out of town investor myself and i rely on the expertise of a property management company to steer me in the right direction. As they rent properties for a living, they usually can tell you what areas are good areas to invest. That being said, I rely on my research to limit the possible state/cities to invest in. For 50K, you are probably better suited at a fixer upper in a decent area.
@Melissa Maw Feel free to connect with me.....no complaints about Holton Wise...they manage 6 units for me out in Cleveland. I've flew out to their office last year and met some of their people. Top notch group.
@David Waddleton
Detroit! https://itunes.apple.com/us/podcast/real-wealth-show-real-estate-investing-turnkey-rental/id883335228?mt=2&i=1000405224557
Also, the numbers check out in some places here in SoCal. I’ve been looking at deals near Joshua Tree. Not bad. Are you going to any of the OOS meetups here in LA?
I am in the Northeast Florida area ... Jacksonville... you can definitely invest in properties under $100k. I have a few if you would like to reach out.
Hi there!
I would recommend Philadelphia Pennsylvania.
Large city catering diverse economic base.
Low inventory (that translates into strong rental and home buying demand.)
Many investors from California NY and elsewhere are already finding good profitable deals here both buy and hold as well as flips.
Property that is available at 50k and with renovations from 15k (cosmetic play) to 50k (full renovations)are obtainable with persistence.
I’d suggest partnering or working with someone in the area to flatten the learning curve.
Feel free to ask any questions.