@Kyle Johnson dude you are in a fantastic growth market with great fundamentals. Cheaper is not always better. If immediate/short term cash-flow with moderate appreciation growth helps you reach your goals consider Columbus. If overall longterm returns are your primary objective stick with Phoenix. You can’t beat a local market with population/job growth and strong property/rent appreciation longterm. Local is also more efficient as you can leverage trusted local help, personal contacts, etc. My $.02
@Kyle Johnson congratulations on entering REI! Long distance investing will require a strong core four real estate tram that you will have to rely on heavily and select dutifully. Imo, your first deal should not be long distance and instead should focus on learning acquisition and operational principles on a local unit. As Brandon Turner says on the BP podcast, your first deal isn't meant to be a home run and you shouldn't always be looking for home run deals. A lot to be said for grinding out the first property with something that breaks even and trains you before the market cools down and deals are more plentiful. Best of luck!!
@Kyle Arendsen good advice! One of the few things I disagree with @Brandon Turner with........You need to ALWAYS be looking for the home run, but have criteria for what your willing to accept if you can’t find that homerun! There are still plentiful deals out there despite everyone talking about the right market. You just have to work and acquire differently and it takes a little more grind.
Originally posted by @Whit B. :
@Logan Reeve @Kyle Johnson
There was an article in the Phoenix Business Journal this morning projecting 7% average appreciation in Phoenix for 2021. I am
of the opinion that $200/month in Ohio will never touch $28k in appreciation on a $400,000 home in Phoenix. I have been the beneficiary of the 11.7% appreciation experienced here in the last year on a portfolio of rentals over $1M so maybe I’m biased? 🤷🏼♂️
If you’re looking for cash flow you need to hook up with my wholesalers. I get 30 deals emailed to me every day that are off market with varying viability and returns. They are out there, but with the appreciation as a bonus my money is staying here in the valley for the time being. If you want to chat about all the insane growth we are seeing from employers and migration, you know how to find me.
Have you looked at the appreciation of Columbus, Ohio?
@Kyle Johnson I’m in a similar situation. I live in CT where prices are already high and have spiked with NY’ers migrating up here since Covid but to be honest with you where CT and Phoenix likely differ is that CT has more of a bleak future so I don’t see any sustained appreciation. The economy is lousy and taxes high. With that said, my partner and I have looked at Ohio, specifically Columbus and Dayton. Where I find myself indecisive is whether to look into a turnkey company or to try to assemble the core four and take the plunge. I already have a successful vacation rental in Gatlinburg TN so I feel like I can do the long term thing but buy and hold rentals are a different beast. What are your thoughts if you go long distance?
My two first properties in Columbus each have a net cash flow more than $1,500/ month and they only required about $70k out of pocket each. Not too mention they have doubled in value.
My suggestion is to find someone that can find you off market deals, or who can act FAST for on market deals.
@Filipe Pereira I appreciate it. I will reach out.
@Michael P. It’s 50 degrees in Phoenix today with a high of 77 for the week. 😎 Ummmm...I mean it’s miserable...stay away.
@Jeff Piscioniere I live in CT as well and although there's plenty of money to be made here, I find the dollar can go MUCH further with as good if not better returns, lower taxes, and higher appreciation potential in other parts of the country. For that reason I chose Florida to do my last investment but I still keep an eye out for deals locally as well, but the barrier to entry is much higher as $100K-$150K couldn't buy us a shoe box up here. It's nice to see CT get some long overdue appreciation but time will tell if that will last...
Keep me posted if you wind up going out of State.