Specialist · Huntingdon, PA · Member since 2018 · 162 posts · 147 votes
7y
Hey Garrett,
Just sharing some research that might be helpful.
Orlando
Job Growth: Orlando’s employment growth is among the best in the U.S. with more than 52,000 new jobs created in just a year and a projected growth rate of 3.2% annually for the next ten years.
Population Growth: Orlando’s population has grown 227% faster than the national average over the last 7 years, and with all the new jobs coming to the area, it’s very likely this trend will continue in 2019.
Affordability: In Orlando it is still possible to purchase fully renovated 3-bedroom properties in good neighborhoods for as little as $156,117.
Jacksonville
Job Growth: Forbes ranked Jacksonville #3 on their list of best cities in the U.S. for jobs with a growth rate of 3.16% this year. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.
Population Growth: The population in Jacksonville has grown 24% since the year 2000, and continues to grow by an average 2% annually. Future job growth over the next ten years is predicted to be 39.21%.
Affordability: In Jacksonville, the median home price is about $171,000, which is 15% less than the national average. A typical 3 bedroom home can rent for 15% more than the national average. These factors show us that there’s a strong opportunity for cash flow in the Jacksonville metro.
Indianapolis
Job Growth: Indianapolis is one of the fastest growing hubs for technology, bioscience and Fortune 500 companies in the nation. In fact, Indy is the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.
Population Growth: With a metro area of over 2.1 million people, Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. Since 1989 Indy’s population has grown over 36%, and continues to grow at a rate of 1% annually.
Affordability: Indianapolis is among the few U.S. cities where you can purchase turn-key properties for only $60,000 to $120,000. In 2018, the median monthly rent for three bedroom homes in Indianapolis was $1,208, which is 0.84% of the purchase price of $143,000. This is higher than the national price-to-rent ratio of 0.74%.
Wishing you all the best with your next investments.
Midland, TX · Member since 2019 · 111 posts · 25 votes
7y
@Garrett Diegel
Hi there! I know nothing about the other markets. As to Fort Worth, I am sure there are still deals to be found but properties have gone up greatly over the last 7 years there. Also, make sure you check the property taxes as depending on the area they can be pretty hefty. I love the area itself but just because of pricing I am checking into other areas.
Rental Property Investor · Grove City, OH · Member since 2018 · 93 posts · 71 votes
7y
I am from Ohio and considering investing in Columbus. Cleveland and Cincinnati both have strong rental markets.
Cleveland is also on my radar for this reason. I lived there from 2013-2015. Rental rates are high compared to what you are able to buy it for. In my opinion, Cleveland would be a good market to do the BRRRR strategy because not many are rehabbing these houses nicely(most rentals are old with a facelift) there seems to be opportunity here. Employers are in diversified markets and people in Cleveland really tend to stay in Cleveland from what I saw.
Contractor · Cleveland, OH · Member since 2014 · 317 posts · 181 votes
7y
@Account Closed you're right, a lot of the 2-3 unit buildings especially just get minor paint and carpet touch-ups, as many investors try to do the bare minimum just to get by without any major repairs. I flip in Cleveland and have a few rentals. Definitely hard to cashflow in suburbs on the east side because of the high taxes, but in the suburbs, west side and even rural areas to medina and akron have serious housing shortages. Rentals in good school districts can cashflow nicely.
Midland, TX · Member since 2019 · 111 posts · 25 votes
7y
@Garrett Diegel
Best of luck, feel free to message me if you want to know more about the Fort Worth area in general. I lived about 30 minutes outside of there until 3 hrs ago.
Flipper/Rehabber · Portland, OR · Member since 2014 · 120 posts · 80 votes
7y
I don't know a ton about Jacksonville, I've intentionally avoided Cleveland, and Fort Worth is getting really hard to find deals in. That being said, for appreciation reasons I would shoot for Fort worth first, Indy second, and Orlando 3rd on this list. All are hot for funds though so the pickings are slim. I LOVE Cincinnati (I feel like big funds missed on that one). It's harder to find deals but if you have a good local guy there are still deals there for sure.
Keep in mind, my experience is from flipping. I've passed on a lot of deals that would have been good cash flow had they fit the model of my previous companies. Still, I would dig into Cinci if you can. It's a real dark horse right now.
I don't know a ton about Jacksonville, I've intentionally avoided Cleveland, and Fort Worth is getting really hard to find deals in. That being said, for appreciation reasons I would shoot for Fort worth first, Indy second, and Orlando 3rd on this list. All are hot for funds though so the pickings are slim. I LOVE Cincinnati (I feel like big funds missed on that one). It's harder to find deals but if you have a good local guy there are still deals there for sure.
Keep in mind, my experience is from flipping. I've passed on a lot of deals that would have been good cash flow had they fit the model of my previous companies. Still, I would dig into Cinci if you can. It's a real dark horse right now.
Why intentionally avoiding Cleveland, if you don't mind sharing?
Flipper/Rehabber · Portland, OR · Member since 2014 · 120 posts · 80 votes
7y
@Robert Matelski it's more of a model issue than anything else. fix and flip more than buy and hold. There are good pockets in any city. Give me 48 hours and I'll find them. But I also need really good local contacts. Between not having good local contacts and what I know about the pockets in my wheelhouse in cleveland, I've simply chosen to avoid it for other areas.
@Robert Matelski it's more of a model issue than anything else. fix and flip more than buy and hold. There are good pockets in any city. Give me 48 hours and I'll find them. But I also need really good local contacts. Between not having good local contacts and what I know about the pockets in my wheelhouse in cleveland, I've simply chosen to avoid it for other areas.
Real Estate Broker · Tri-Cities, WA · Member since 2018 · 47 posts · 33 votes
7y
Hey Garrett,
First off, seems like you've pegged some good markets there - and they're all over the US! Do you have any personal ties to any of the markets or any particular region of the US? In just about any market, most the work will be finding the right deal, so if you're going to spend a lot of time thinking about it, studying it, maybe even visiting, it doesn't hurt to have a personal reason to want to do all those things! Either a connection there, or maybe just the weather or pace of life.
Second, what are you investing in? I think that makes a big difference. If you're investing in 100+ unit apartment complexes, Fort Worth will be nearly impossible to find a deal. If you're looking at SFH or under 20 units, then Fort Worth is an amazing market for that, and you can find off-market deals flying under the radar of bigger investors.
Other than the two above, there are a TON of factors that can influence this decision - job growth, population growth, home structures, overall prices, average rents, tax friendly, law friendly, and so many more. I'd do an in-depth analysis of the Top 10 metrics you value, then just look at it based on which market scores the best!
Specialist · Huntingdon, PA · Member since 2018 · 162 posts · 147 votes
7y
Hey Garrett,
Just sharing some research that might be helpful.
Orlando
Job Growth: Orlando’s employment growth is among the best in the U.S. with more than 52,000 new jobs created in just a year and a projected growth rate of 3.2% annually for the next ten years.
Population Growth: Orlando’s population has grown 227% faster than the national average over the last 7 years, and with all the new jobs coming to the area, it’s very likely this trend will continue in 2019.
Affordability: In Orlando it is still possible to purchase fully renovated 3-bedroom properties in good neighborhoods for as little as $156,117.
Jacksonville
Job Growth: Forbes ranked Jacksonville #3 on their list of best cities in the U.S. for jobs with a growth rate of 3.16% this year. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.
Population Growth: The population in Jacksonville has grown 24% since the year 2000, and continues to grow by an average 2% annually. Future job growth over the next ten years is predicted to be 39.21%.
Affordability: In Jacksonville, the median home price is about $171,000, which is 15% less than the national average. A typical 3 bedroom home can rent for 15% more than the national average. These factors show us that there’s a strong opportunity for cash flow in the Jacksonville metro.
Indianapolis
Job Growth: Indianapolis is one of the fastest growing hubs for technology, bioscience and Fortune 500 companies in the nation. In fact, Indy is the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.
Population Growth: With a metro area of over 2.1 million people, Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. Since 1989 Indy’s population has grown over 36%, and continues to grow at a rate of 1% annually.
Affordability: Indianapolis is among the few U.S. cities where you can purchase turn-key properties for only $60,000 to $120,000. In 2018, the median monthly rent for three bedroom homes in Indianapolis was $1,208, which is 0.84% of the purchase price of $143,000. This is higher than the national price-to-rent ratio of 0.74%.
Wishing you all the best with your next investments.
Rental Property Investor · Kansas City, MO · Member since 2016 · 116 posts · 49 votes
7y
@Garrett Diegel The list you are researching right now is very strong, but I would add Kansas City, MO to your list as well. Kansas City has a very strong rental market. Our metro is unusually large, has two professional sports teams, and is also benefited by an eclectic variety of industry.
To add to that, the affordability is extremely attractive. KC is one of the few markets able to provide B class property from $90k-$150k while being able to stay right around that 1% RTV. Feel free to reach out if you would like more detailed info.
First off, seems like you've pegged some good markets there - and they're all over the US! Do you have any personal ties to any of the markets or any particular region of the US? In just about any market, most the work will be finding the right deal, so if you're going to spend a lot of time thinking about it, studying it, maybe even visiting, it doesn't hurt to have a personal reason to want to do all those things! Either a connection there, or maybe just the weather or pace of life.
Second, what are you investing in? I think that makes a big difference. If you're investing in 100+ unit apartment complexes, Fort Worth will be nearly impossible to find a deal. If you're looking at SFH or under 20 units, then Fort Worth is an amazing market for that, and you can find off-market deals flying under the radar of bigger investors.
Other than the two above, there are a TON of factors that can influence this decision - job growth, population growth, home structures, overall prices, average rents, tax friendly, law friendly, and so many more. I'd do an in-depth analysis of the Top 10 metrics you value, then just look at it based on which market scores the best!
Thanks Mason. You are correct that they are all over. We don't have any ties to any market except for our local market here in NV. Other than that we are looking strictly for buy and hold cash flowing properties. Certainly scheduling a "work trip" to Florida would be more fun than say snow covered North Dakota haha. But all that aside it is really the numbers and overall quality of the investment that matters to us. We are looking for SFR and MFR properties under the 20 unit mark that provide solid cash-flow numbers.
I would also totally agree that we will be doing more digging when it comes to census type data such as job, pop, price growth, taxes, laws etc. That being the case the amazing people of BP are super good at helping us narrow down markets and build our team on the ground in those areas.
Thank you so much @James Wise. I have come across this post from you before and reviewed it a bit. I'll have to do some more in depth reading on it that is for sure. The place we are at right now in the process is deciding which market we like best and then moving on it to build our team on the ground. I'm not opposed to multiple markets but being a smaller buy and hold investor we only have the bandwidth to go into one market at a time. Just needs to be profitable, target rich, and meet data standards. Outside of that the city with the best team on the ground would win out for sure.
Thank you so much @James Wise. I have come across this post from you before and reviewed it a bit. I'll have to do some more in depth reading on it that is for sure. The place we are at right now in the process is deciding which market we like best and then moving on it to build our team on the ground. I'm not opposed to multiple markets but being a smaller buy and hold investor we only have the bandwidth to go into one market at a time. Just needs to be profitable, target rich, and meet data standards. Outside of that the city with the best team on the ground would win out for sure.
Real Estate Broker · Chicago, IL · Member since 2016 · 23 posts · 7 votes
7y
@Garrett DiegelI know a guy that works with a lot of AirBnB and he finds, furnishes, and manages your rental in a handful of states. Is this something that you would be interested in? Let me know and I can make introductions.
Midland, TX · Member since 2019 · 111 posts · 25 votes
7y
@Kenneth Williams
Best of luck on the phone interview, either way, there is a ton of opportunity for work here. Dang post office is even paying $21.43 an hour. Feel free to message me if you want more info on the area. I’m sure you’ve heard housing and rent here are really high because of all the jobs. Right now I work PT from home and husband works for a chemical company.