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!
I see a lot of out of state investors asking about midwest cities, but then I also hear a lot of people say there are still plenty of opportunities in places like CA, FL, TX, etc. Ironically I've heard St. Louis investors talk about how this market isn't that great and suggest looking outside STL. Wondering how much of this is the "grass is always greener" effect. Also wondering if investors are going to start moving away from metro to mid-size markets in the 40k to 100k population range.
California opportunities? Maybe Salton City or Mohave Desert but not anywhere close to desirable areas i.e. Los Angeles under $100k.
David if you are considering Orlando, Tampa or anywhere in central FL I can absolutely help. I’m a local investor and agent. Orlando is ranked #1 by Forbes and #3 by yahoo as the top place to invest in. As far as other cheaper markets, I saw in an early reply you mentioned Pittsburgh. Pittsburgh has the largest volume of properties available for under 100k. You can find some decent cash flowing properties there but they will be older properties. I’ve seen Cleveland and Indy come up multiple time in several articles about cheap properties as well. The biggest benefits of the FL market, especially central FL and Orlando is the appreciation we are seeing which isn’t slowing down any time soon.
Thanks. I have seen Orlando come up several times. I feel that now I have to find a way to verify this info by doing my own research but at this time I don't know how. Do you have any advice on how to narrow the country down by using raw data such as Employment growth, population growth, big companies coming into cities providing economy growth, etc?
Right now in NE Euclid, OH and Lake County, OH, I presently have ZERO vacancies out of 120 front doors. Knock on wood!! I am pushing 2br 1bath units to $750.00 for about 900sf, plus $25.00 pet rent, per pet, two pets max.
Those are on 8 apartment complexes total. I also have an LOI out for a 60 unit and a 24 unit in Lake County too. The last 34 unit deal I had was at about $33,000 a door in a solid blue collar hard working neighborhood in Lake County, Ohio. Very difficult to find deals in these areas I invest for Apartment complexes. If you want 1-4 units in these areas, I would get about 8 residential agents with offices in NE Euclid and Lake County to find you these deals, before they get listed on the MLS. Back in 2014-2015 they were all foreclosures, bank owned, short sales etc.. that has all but dried up out there. You need to hustle to find them, before other investors scoop them up.
I leave Mon, Tues, and Fridays available to talk and advise BP members on the phone and just to talk RE from 3;15-6:15 PST. I live in San Diego. Listen to podcast 238 and then reach out to me.
I see a lot of out of state investors asking about midwest cities, but then I also hear a lot of people say there are still plenty of opportunities in places like CA, FL, TX, etc. Ironically I've heard St. Louis investors talk about how this market isn't that great and suggest looking outside STL. Wondering how much of this is the "grass is always greener" effect. Also wondering if investors are going to start moving away from metro to mid-size markets in the 40k to 100k population range.
Scott, personally I've never considered TX a very good cash flow market. They have some of the highest property taxes and insurance rate in the nation which are cash flow killers. FL is just as bad when it comes to insurance and will only get worse after Hurricane Michael. For cash flow, I still like midwest markets like Indianapolis and Kansas City. The returns are much stronger there. It's not just lower priced homes that these markets have going though. Both have strong economic and demographic trends.
Thank you SO much, everyone, for your amazing responses. You are truly appreciated =).
Question: How do I do my own research to find suitable cities? Problem with articles and people's opinions as they might not be based on cold hard numbers. So I'm looking to find raw data on the following and if I'm missing some please let me know:
Population Growth
Job Growth
New Companies coming into city i.e. Google, etc
Unemployment Rate
Also want to eliminate states that have high property tax rates, high insurance rates
Then once I narrow I can find areas in the city and use more mainstream info: school scores, walkability scores, crime demographics, etc.
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+.
To clarify your question - are you looking to purchase a house for a total of $50-$100k or do you have $50-100k to invest? Are you willing to take on debt?
Hello John, I have the ability for up to $100k and prefer not to do cash as it will tie up my money. This will be my first property out of city/state so I need to be prudent and not risk too much. I am willing to take on debt (mortgage you mean?)
Just to add to Johns point, were you referring to 100k down? ~4-500k home. This is what I gathered when you mentioned home prices in LA are 700k+. I could be wrong, most people are referring to a 100K total price, if that's what you meant, I would save a bit more before you jump in.
At that range its more of a headache than its worth. Have you thought of Las Vegas? You're relatively close and the market there is quickly growing.
So 20% down on $100k house is what I meant. Looks like Vegas has blown up a little too much. Timing is killer. If I had money back in 2008!
@David Waddleton I average about 22- 35% here in Cleveland. I have partners from Cali. Just be careful who you deal with. No matter how popular they seem. My suggestion is fly out and check out they're system. No matter where you go people try and do take advantage of out of state investors. Good luck
@frank wolter thanks I appreciate it. Where in Cleveland - areas do you recommend?
I see a lot of out of state investors asking about midwest cities, but then I also hear a lot of people say there are still plenty of opportunities in places like CA, FL, TX, etc. Ironically I've heard St. Louis investors talk about how this market isn't that great and suggest looking outside STL. Wondering how much of this is the "grass is always greener" effect. Also wondering if investors are going to start moving away from metro to mid-size markets in the 40k to 100k population range.
Scott, personally I've never considered TX a very good cash flow market. They have some of the highest property taxes and insurance rate in the nation which are cash flow killers. FL is just as bad when it comes to insurance and will only get worse after Hurricane Michael. For cash flow, I still like midwest markets like Indianapolis and Kansas City. The returns are much stronger there. It's not just lower priced homes that these markets have going though. Both have strong economic and demographic trends.
Interesting. I find the cash flow in Houston to be insanely high so long as you don't pay what some crazies have started to pay in the last year or so. In the last 24 months I've bought quite a few properties, all cash flowing with 100% (+/-) leverage.
@David Waddleton I’m a Realtor/Investor in the Indianapolis market. Born and raised in this state. Indianapolis is a great market for cash flow! Now that the summer rush is winding down, you might actually have a chance of finding a house that doesn’t have 5-6 offers with some of them being cash. Trying searching the MLS and crunching some numbers on a few properties.
@Tinley Jones, I just moved from the Indianapolis area to Tampa Florida! Indy is a great area to be looking. A lot of nice up and coming areas and the real estate is still cheap compared to a lot of the country. Indianapolis is definitely a city to watch IMO. Good luck!
@Craig Boutte I would be interested in more information about the property in Lawton. I was stationed on Fort Sill, so I spent time there way back when. I really enjoyed it.
@Janett Lewis
Hi Janet
My name is Tina Thompson
I am looking at buying a property in the St Louis Area. Are you able to give me your contacts there for contractors and any others that you may think would be helpful.
Thanks
@Brian Garlington
Hi Brian
Can you give me more information regarding your lender that finance under 50,000
I have been told the same thing regarding “they don’t lend under 100,000”
I would also like to know more about your deals that you have purchased
Thanks
Tina
@Cody L. how are you finding these deals? are you doing your own direct marketing or wholesalers? Are you buying them with that much equity to be able to 100% leverage or do you have some kind of special financing?
@Charles A. Just curious, when you analyze a market what metrics do you focus on, and why is population not important to you? Or do you not think data outside of COC is important? No right or wrong here, as everyone has different strategies, so just curious what yours is?