Real Estate Agent 路 Livermore, CA 路 Member since 2016 路 173 posts 路 74 votes
I'm selling a rental (escrow scheduled to close 2/14) and need to find a replacement for 1031 exchange. I'm looking for cashflow, C class or better, multifamily would be great. Property needs to be around $550K to complete the 1031.
I live in the San Francisco Bay Area and am considering a single family with in-law that I might make a primary residence one day, but it's probably not the best use of my investing resources so today I'm diving into what my other options look like.
I've been looking around in the central valley and Sacramento area since it's within a 2 hour drive. I've also been considering out of state, where I have some contacts, in Vancouver WA area, Bend OR, and St. Louis MO. Would love some feedback from any investors in these areas or any other areas I should consider.
Rental Property Investor 路 Scottsdale, AZ 路 Member since 2018 路 36 posts 路 33 votes
6y
@Maria D.
Congrats on your 1031 sale! I'm an investor and Realtor in metro-Phoenix and am quite partial to the area here but there are many areas throughout the country (Texas, Tennessee, the Carolinas, Nevada, etc.,) that are investor friendly. It just depends on your goals and what you are looking for. In less expensive areas (like Phoenix) you could split up your 1031 funds into multiple properties, find a property manager (I know a few), get tenants lined up (we have ALOT here), mortgage the properties (we work with the best in the state, with great interest rates) and then enjoy the cash flow, tax breaks and appreciation. We have about 300+ people moving into our county every day (employment is booming) so housing is in high demand. You are in a fabulous position but the clock is ticking for you to find your new properties. I'd be happy to help answer any questions you may have about Phoenix. :)
Rental Property Investor 路 Concord, GA 路 Member since 2015 路 3k+ posts 路 3k+ votes
6y
Here in Georgia, our entire portfolio (we live off the cash flow) was purchased for about the price of your one property. I struggle to wrap my head around west coast prices.
Real Estate Syndicator 路 Milwaukee, WI 路 Member since 2018 路 1k+ posts 路 907 votes
6y
Milwaukee, WI is a good market for cashflow. Cap rates are relatively fair in Milwaukee compared to many other markets. Feel free to reach out if you would like more info on the market and local connections.
Real Estate Agent 路 Annapolis, MD 路 Member since 2017 路 110 posts 路 82 votes
6y
One thing I have learned between managing one property 10 minutes away from me, and another 100 miles away in PA... I鈥檇 much rather have my investments closer to home. Perhaps something to take into consideration as well if you are an active investor. Cash flow is always better when you self manage 馃槂
Real Estate Agent 路 Oklahoma City, OK 路 Member since 2019 路 956 posts 路 600 votes
6y
@Maria D'Aura I've seen quite a few investors pull off 1031's in OKC in the last year. With 550k I would pursue an off-market package of 7-9 properties. In that purchase price range you'd be looking at 8% cap rates and cash flow. It's a solid stable market that holds value and rent rates through downturn. Something to think about incorporating into a portfolio that's based in more fluctuating markets.
@Bob Prisco hi what types of neighborhoods are these cap rates in? I鈥檓 looking for that cap range and don鈥檛 mind properties that need some work but as far as I understand it West Cleveland is where you want to be.
@Tim Debronsky Hi Tim - are these B class neighborhoods that you look at? I鈥檇 love to start investing in Cleveland but having difficulty getting enough traction with people on the ground! Thanks.
Rental Property Investor 路 Tampa Florida 路 Member since 2019 路 21 posts 路 14 votes
6y
@Maria D. That鈥檚 quite a bit of money for the Midwest. You may want to look at acquiring a portfolio in places like, Indianapolis, Milwaukee, Cincinnati, etc. they all have good job and population growth. The price to rent ratios are top notch for cash flow.
One thing I have learned between managing one property 10 minutes away from me, and another 100 miles away in PA... I鈥檇 much rather have my investments closer to home. Perhaps something to take into consideration as well if you are an active investor. Cash flow is always better when you self manage 馃槂
Sadly some of us need to be creative in generating cash flow in our backyard as we need to venture our 2-3 hours drive to meet our goals
One thing I have learned between managing one property 10 minutes away from me, and another 100 miles away in PA... I鈥檇 much rather have my investments closer to home. Perhaps something to take into consideration as well if you are an active investor. Cash flow is always better when you self manage 馃槂
Sadly some of us need to be creative in generating cash flow in our backyard as we need to venture our 2-3 hours drive to meet our goals
Or change your backyard!! Kidding aside, I know what you mean, but at some point if it makes to move, it might be worth doing. HCOL is a big hindrance to financial independence.
One thing I have learned between managing one property 10 minutes away from me, and another 100 miles away in PA... I鈥檇 much rather have my investments closer to home. Perhaps something to take into consideration as well if you are an active investor. Cash flow is always better when you self manage 馃槂
Sadly some of us need to be creative in generating cash flow in our backyard as we need to venture our 2-3 hours drive to meet our goals
Or change your backyard!! Kidding aside, I know what you mean, but at some point if it makes to move, it might be worth doing. HCOL is a big hindrance to financial independence.
I already know fellow investors who moved from Canada to Texas just to grow their real estate empires. I think the other half will have a lot to do on that decision lol..