I'm evaluating on buying 1-2 rental properties (either SFH, Duplex or Triple) planning to hold for long term and looking for some decent positive cash flow.
After my extensive research, I short listed four state GA, TX, IN & ID. I was looking for some suggestion or opinion to narrow down my search.
Which cities from these four I should pick - Atlanta, GA , Fort Worth TX, Indianapolis, IN or
Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
7y
Ashley, if you're wanting to cash flow in Idaho I'd suggest Nampa but you'll most likely need to put down 30%. That's a simply one-sentence answer to a lot of research and also holding my portfolio in the Treasure Valley.
Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
7y
Ashley, if you're wanting to cash flow in Idaho I'd suggest Nampa but you'll most likely need to put down 30%. That's a simply one-sentence answer to a lot of research and also holding my portfolio in the Treasure Valley.
30% down isn't necessary if your rents still cover the debt service. I got financing at 15% down for my Boise triplex in March. Nampa is going to have lower rents than Boise, but not by much. In my research, for your price range, you could look at SE Boise, or between Boise and Meridian (it's about the same place I'm looking :) ). If you want a good property manager, I'll hook you up with mine. They've been excellent, and have a contracting arm that does all the maintenance and rehab in-house.
Investor · Idaho Falls, ID · Member since 2016 · 935 posts · 629 votes
7y
@Ashley Rodgers If you are looking for 1-4 units you have the possibility for 10% down as well, obviously it needs to cash flow with that but if it does your cash on cash will be much higher. So depending on how much actual cash you have to put down you could go a long way.
Or you could be open to something larger, a 5+ unit property. I'm not all that familiar with the Boise area other than the really high prices I've seen. So I don't know how easy it is to find a cash flowing property out there. You may have more luck outside of the major cities. If you look to Eastern Idaho you may be able to stretch your money a bit further and get better returns. People have a lot of success here with ST rentals as well. Can't speak much on taxes as I am not familiar with those other states. Eastern ID is a very much more relaxed area though and very low crime rates.
Having lived in Indy not too long ago and now living in ATL, I will personally say the opportunity for Duplex/Triplex is much better at the $200-300k price point you listed, in Indiana, specifically Indianapolis.
At the end of the day though, the city you pick has to be up to you and your comfort level and your personal reasons. But strictly from an opportunity to value standpoint, nothing else considered, I'd go with Indy every time with $200-300k to spend.
As with any city though, be sure you have boots on the ground and area knowledge.
Real Estate Consultant · Whitestown, IN · Member since 2014 · 547 posts · 933 votes
7y
@Ashley Rodgers We have over 140 clients with investments in Indianapolis and most of them are OOS investors. It's relatively inexpensive with decent rent ratios in a growing market. Deals are getting more scarce, but we still have investors buying every month. I don't know about the TX, GA, ID markets, but the tenant landlord laws are very owner oriented and property taxes are predictable. At the end of the day, I think it comes down to where you can find the right team. There are deals in many markets, but having the right team and leveraging their network and expertise is where the real money is made.
@Adam Fleck- Please let me know the details of the property manager.
@Don Spafford - Yes, I'm exploring Eastern Idaho & other parts in ID.
@Evan Parker , @Ross Denman- The problem I see or the properties looking good on cash flow in Indiana - is the condition of units. Most of these properties are old and majority are in red zone (high crime rate), being a out of state investor- wanted to stay low on repairs & tenant issues.
As mentioned by you, looking for the right team & right clues :)
Texas was good but the problem is high properties taxes and each year they keep on appraising property value by 10-25% and gobbling any good returns :(
Can anyone please add some insights from Atlanta - Georgia? About the rental investment properties ?
I can, is there a specific question/set of questions?
How is the rental market in Georgia? Cities where you can have a positive cash flow- considering class B properties. Any preferred cities or areas?
The rental market in GA is fantastic. You can find positive cash flow in too many cities to name. It just all depends on your budget, what kind of properties you're looking for, and what your goals are.
Feel free to shoot me a PM and I'd be happy to talk with you more.