favorite markets for new investors out of state?

11 Replies

just reaching out looking for markets that aren't oversold and over bid. Im looking to invest out of state any suggestions? im paticularly interested in college / university towns.  Thank you for any input.

cheers

E

Updated 22 days ago

oh, side note, I'm interested in B,B+ properties, or c+ that can be BRRRRd... ;)

Hi Erik! 

Historically speaking Indianapolis has been a pretty flat market and that's why it's been an ideal location for investors (both in and out of state) for years. It still remains one of the few Midwest locations where 2% monthly rental yields are possible, and when you compare IN tax (Marion Co for example at just over 1%) rates to other areas along with avg purchase price, it builds momentum quickly moving towards the tops of the investing list. Bonus for your specific question, Indianapolis holds IUPUI, Indiana University teaching hospital (many resident interns), Marian University Indianapolis, Martin University, Butler University, University of Indianapolis, Chamberlin University College of Nursing, and a few others like Ivy Tech. Overall it seems like Indianapolis is a great area to invest in for both buy and hold as well as fix and flips- but let me know if you've got more questions about Indy, thanks = )

Metro Detroit Market with some large generalizations, ballparks and assumptions. (anticipating the backlash with the #Detroit flag)

A Markets: sub 1% deals $250k-$1m price point, 6% cap, not a lot of cash flow but not really the strategy in these markets anyways.

B Markets: 1%-1.3% deals $115-$200k, decent cash flow, beating $100/door rule and can get up about $200-$300/door. Price/rent ratio heading right direction

C Markets: 1.3%-1.9% deals $60k-$115k price points, nice cash flow, $200-$400/door. Solid Price/rent ratio.

With just about everything in between. The B- to C+ blend is a sweet spot in the suburbs.

Not a ton of Multifamily inventory but they're out there to add to your portfolio. 1%-1.5% deals usually. We're Inventory stricken at the moment like every other market but feel we at least have more attempts than other national investor markets.

Lansing, Ann Arbor, Lansing, Downtown Detroit are our "college towns" but seems a lot of people have your idea and prices a bit more inflated. We like Metro Detroit Suburbs for the ROI/Cash flow balance most prefer - and stick our toe in Detroit when it makes sense.

Originally posted by @Anna Laud :

Hi Erik! 

Historically speaking Indianapolis has been a pretty flat market and that's why it's been an ideal location for investors (both in and out of state) for years. It still remains one of the few Midwest locations where 2% monthly rental yields are possible, and when you compare IN tax (Marion Co for example at just over 1%) rates to other areas along with avg purchase price, it builds momentum quickly moving towards the tops of the investing list. Bonus for your specific question, Indianapolis holds IUPUI, Indiana University teaching hospital (many resident interns), Marian University Indianapolis, Martin University, Butler University, University of Indianapolis, Chamberlin University College of Nursing, and a few others like Ivy Tech. Overall it seems like Indianapolis is a great area to invest in for both buy and hold as well as fix and flips- but let me know if you've got more questions about Indy, thanks = )


thanks anna!  much appreciated..

 

Originally posted by @Joe Hammel :

Metro Detroit Market with some large generalizations, ballparks and assumptions. (anticipating the backlash with the #Detroit flag)

A Markets: sub 1% deals $250k-$1m price point, 6% cap, not a lot of cash flow but not really the strategy in these markets anyways.

B Markets: 1%-1.3% deals $115-$200k, decent cash flow, beating $100/door rule and can get up about $200-$300/door. Price/rent ratio heading right direction

C Markets: 1.3%-1.9% deals $60k-$115k price points, nice cash flow, $200-$400/door. Solid Price/rent ratio.

With just about everything in between. The B- to C+ blend is a sweet spot in the suburbs.

Not a ton of Multifamily inventory but they're out there to add to your portfolio. 1%-1.5% deals usually. We're Inventory stricken at the moment like every other market but feel we at least have more attempts than other national investor markets.

Lansing, Ann Arbor, Lansing, Downtown Detroit are our "college towns" but seems a lot of people have your idea and prices a bit more inflated. We like Metro Detroit Suburbs for the ROI/Cash flow balance most prefer - and stick our toe in Detroit when it makes sense.

 thanks Joe!  much appreciated..

thanks dreyson..appreciate it.. thats a great suggestion.. working on it ;)   


Originally posted by @Dreyson John Kuikaika Mahi :

@Erik Ped

i personally have heard Midwest and Southeast are great area to invest. What i did myself was make a list of area in Midwest and Southeast that id invest in then do a deep dive about each state to see what it has to offer. I hope this helps!

 

We like the Ring Cities of Metro Detroit: the cities that border Detroit. Best bang for your buck:)