Duplex Investor · Atlanta, GA · Member since 2013 · 29 posts · 0 votes
What are the pros and cons of Big city vs Smaller yet known city investments ?
Where i currently live has population of approx 70k and that is close to Milwaukee and Chicago (the giant) both are 1 hour and 3 hours away respectively. Do i start investment in bigger city with lots of tennants pouring in or smaller city with maybe more vacancies in long run ?
Real Estate Consultant · Kansas City, MO · Member since 2013 · 388 posts · 200 votes
13y
It appears that your strategy is towards a buy and hold rather than flip market.
In either sense, your best answer is the market in which you understand the best or have the best professional resources to pride you with accurate data.
When the going gets tough, and it will at some point in every investors career, where do you want to go to clean up the mess?
These answers will send you in the right direction.
To really answer your question, what will be your competitive advantage? Can you compete where there are a lot of tenants to attract from, or where you can have the best properties for the few tenants that exist?
Real Estate Consultant · Kansas City, MO · Member since 2013 · 388 posts · 200 votes
13y
It appears that your strategy is towards a buy and hold rather than flip market.
In either sense, your best answer is the market in which you understand the best or have the best professional resources to pride you with accurate data.
When the going gets tough, and it will at some point in every investors career, where do you want to go to clean up the mess?
These answers will send you in the right direction.
To really answer your question, what will be your competitive advantage? Can you compete where there are a lot of tenants to attract from, or where you can have the best properties for the few tenants that exist?
Commercial Landlord · Macon, GA · Member since 2013 · 79 posts · 33 votes
13y
One of the big differences will be your availability to buyers when you get ready to sell. Larger investment companies will usually not invest in a tertiary market. In smaller cities its best to buy single family and small multifamily. The reason for this that you will likely be selling to locals when you get ready to sell. There are more buyers for houses and small multi.
Duplex Investor · Atlanta, GA · Member since 2013 · 29 posts · 0 votes
13y
@Bill Ham Great point ! I started thinking the same myself that since my target area is not big city i should focus on SFH rather than duplex or triplexes but again second thoughts creep in that monthly rent will be low which means very very low profit and sometimes under water ! and as a first time buyer this is scary!
Investor · Wausau, WI · Member since 2014 · 10 posts · 0 votes
12y
@Inam Rehman I'm in the same situation. I am graduating from uw whitewater in a week and was looking into moving to milwaukee but will most likely be stuck living in janesville for a while. I attend the milwaukee REIA meetings which aren't that far away and I don't mind the drive, however I don't think I can take the time to do the proper research on milwaukee from so far away.
It's been a few months since your post though so I was wondering if you have any updates or advice.
Duplex Investor · Atlanta, GA · Member since 2013 · 29 posts · 0 votes
12y
@Adam Johnson I am still trying to get my feet wet so dont depend upon my advice. What i am thinking and trying to execute is to start with city and its surroundings that i know better and since Duplexes+ are hard to sell and even harder in smaller cities i might end up having a great deal.
Later on depending on how my first investment works out i will decide if and when to move to bigger city like Milwaukee and Chicago.
when I said larger properties/multifamily being harder to sell in the smaller markets I meant big complexes as in 100+ units or more. I have several in a small town and its harder to sell there than in a big city.
As for duplexes and quads or properties up to 20-30 units are great to buy in small towns. I highly suggest flipping singles and holding multi for long term cash flow.
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
12y
I strongly prefer investing in large cities. It is very unlikely that any metro area of 500,000+ will suddenly fall on hard times . Even areas like Detroit and St. Louis have some very nice areas in the metropolitan area that are great for investors. However in the smaller areas, the loss of a single major employer can devastate the town.