Real Estate Agent · Livermore, CA · Member since 2016 · 173 posts · 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 · Scottsdale, AZ · Member since 2018 · 36 posts · 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. :)
Hi John I’m struggling finding Multi to buy in the broader ATL area. Any tips or resources you can share? Thanks.
We're pretty much sfr investors. The duplex we're closing on tomorrow was just sort of in conjunction with other sfr we're looking at in a small town well south of Atlanta (Thomaston). The market has gotten so competitive in our usual hunting grounds that we've moved our target. There are some multi family properties I know of but they're not a good deal. The properties are essentially "slum lord" remnants and the ask on them is about double what I think they should sell for. If you can deal with major fixers, this complex is a row of brick 2/1 duplexes and they ALL need work. A few aren't even inhabitable. Rents rates in Thomaston won't be enough to cash flow them. From my observations and understanding talking to at least one resident there, the landlord doesn't fix anything. If someone could buy all the units and then fix them all up, I'm sure the rents could be greatly increased but it's out of our ability or desire to do. If you think you're up for a major project, message me and I'll send you the info on them.
@Maria D. Santa Barbara, CA there is no where better
Hmmm. No where better I agree. But for rentals? I'd love to hear more. I've never even considered looking in that area as I assumed it was nearly as expensive as Silicon Valley.
@Maria D'Aura I live in the SB area and yes, unless you put a ton down, it's nearly impossible to find cash flow (at the moment). I have hopes for the future though.
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
6y
Couple of things:
I'd look hard on the West Coast. You mentioned Bend, Vancouver and Sacramento. All very favorable places. I suspect that cash flow will not be strong in these areas, though.
Be careful with the Midwest or any markets you don't understand. Properties here are often cheap for a reason. Detroit was mentioned on this tread, which is primarily risky real estate. (Although local experienced operators are doing very well).
Be careful with turnkey providers. Often these are mediocre investments.
Rental Property Investor · Dallas, TX · Member since 2019 · 88 posts · 55 votes
6y
@Alex Bruski The mortgage on my duplex is 1500 a month including the 390 I pay a month in property taxes. But I get 1k a month from side a. I live on side b of the duplex and I plan on forcing appreciation to get 1200 a month. You just have to make sure the numbers work. I'm in Ft.Worth by the way.
Rental Property Investor · Mountain Grove, MO · Member since 2016 · 44 posts · 6 votes
6y
I hope this is the correct place to ask if anyone has any experience with the Vertex42 Rental Property Cash Flow spreadsheet. I like the Bigger Pockets Calculator but I'm not paying what they want for a pro membership these days. At least not right now. Any experience you have with this or recommendations for other spreadsheets would be appreciated.
Hi Amber! I’m brand new but I’m from Chandler and was wondering about the market in the Valley. Where have some of your best deals been recently and where would you stay away from? I don’t have a very high budget and I’m looking for my first property (not necessarily in AZ but it would be nice). I don’t mean to poach or anything sleazy like that, just looking for advise from someone who knows more than me.
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
6y
I might have already answered this thread but I don't want to click through each page to see! I've seen around 400 cash flowing off-market deals secured in the OKC area in the past two years. The norms are 60-80k, 1% rent to value ratios and 8% caps. Taxes are low here and it's very landlord-friendly. It's also nice that it's not over saturated with investors!
Investor · Seattle, WA · Member since 2015 · 14 posts · 9 votes
6y
@Stephanie Jones I would be interested in learning more about the Memphis market. I’ve been interviewing turnkey providers and Memphis invest peaked my interest. Have you had any experience with them?
Broker · Phoenix, AZ · Member since 2015 · 151 posts · 55 votes
6y
I was actually referring to buying a property and making it a short-term rental, not one that is setup that way currently. Finding a SFH or small MF and converting it over, or there are some builders that are doing builds with this in mind in hot locations or on demand. Then you AirBnB/Homeaway it with a company that can manage it for you. When you want to utilize your STR, you just block out those dates with the manager and they block those on the calendars. It's actually easier than a long-term rental to do, if you find the right company. My brokerage has a STR division that does it for in and out of state investors, and they are pulling in 3x the rents of traditional long term here in AZ.