What are attractive markets to invest in right now?

13 Replies

I live in California, everything is expensive here. Looking to invest outside of CA and perhaps in southwest, Texas, AZ, NM, what are some good markets right now and why do you like them?

@Coco Cook sounds good, thanks for the info I am really interested in Austin and Phoenix/Scottsdale as well and actively looking in those areas

Phoenix metro (including Scottsdale) is very popular with California investors. We are close enough that you can pop over when needed. Happy to answer any questions I can about the Phoenix market!

@Kevin Reinell and @Coco Cook

There is so much opportunity in the Metro Phoenix market right now. I am helping 2 clients find homes in Scottsdale to rent for $2,000 a month—and the competition is fierce. It’s such a great time to be a landlord here.

I spoke to a Honolulu REI group run by BP members (while visiting there earlier this month this) and shared some of the stats on what's happening here. Major investment and expansion by companies, including Microsoft, Nike and Amazon.

And Phoenix has the fastest-rising rental rates. You can see these reports and more at:

PhoenixScottsdale.realestate/invest

Depending on your price point you could go for a condo in Scottsdale or a single family home near employment centers.

So many options! Plus this is a great place to visit to check on your investments.

You will find properties here to suit your investment profile. Every reason to get started on your due diligence.

Let me know if I can help.

Melanie

Seattle is great if you have the capital and the time to be picky- its definitely expensive but there are some great deals mixed in. I've been investing here in Seattle for 7 years, feel free to message me with any questions. Cheers!

Originally posted by @Evan Brookman :

I'm going to look into Seattle and Phoenix. My friend told me that Phoenix is a hot spot now. 

 

Originally posted by @Kevin Reinell :

I live in California, everything is expensive here. Looking to invest outside of CA and perhaps in southwest, Texas, AZ, NM, what are some good markets right now and why do you like them?

Hey Kevin welcome to the site. This a super popular question among investors living in California. Many people are in the same boat as you and most of them turn to what we call the turnkey markets. There are tons of turnkey markets out there. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

  • Cleveland, Ohio
  • Dayton, Ohio
  • Toledo, Ohio
  • Youngstown, Ohio
  • Cincinnati, Ohio
  • Memphis, Tennessee
  • Birmingham, Alabama
  • Kansas City, Missouri
  • Saint Louis, Missouri
  • Indianapolis, Indiana
  • Detroit, Michigan
  • Erie, Pennsylvania
  • Louisville, Kentucky
  • Milwaukee, Wisconsin
  • Jackson, Mississippi

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

  • Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
  • Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
  • Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
  • Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
  • Make sure your property manager is a licensed real estate brokerage.
  • Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.

@Melanie Johnston

Thanks for the recommendations, I have seen the data on the rising rental rates and have visited PHX/Scottsdale recently and quality of life is good. I do like the fact that it’s close to CA so easy to visit. Do you have any property management contacts I should look into?

You will have a hard time getting close to the 1% rule in most areas in Phoenix or Scottsdale. The least expensive house in Scottsdale right now is less than 1200sf, needs work to make it cute and is almost 300k, you would be lucky to pull $1700-$1800/month out of it.

Jeff S. is right. I live in Arcadia lite and have since 2007.  Do not invest here in Phoenix, way way way way better CF out of the rust belt in NON I  REPEAT NON-WAR ZONE areas.

You will notice that the only positive (hyped up in other words) advice on this post are people in support of YOU investing in the valley are people with a vested interested in getting your $$$.  just stating a fact.