Best Markets to Buy/Hold in 2019

Multi-Family and Apartment Investing
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Best Markets to Buy/Hold in 2019

Ben Mosh
Member since 2019 · 3 posts · 3 votes

I'm brand new to Real Estate investing,  and hoping to get some advice on a few markets that I should consider looking at (for buy/hold strategy). Also would be curious if you have any suggestions on a price range I should be targeting (if I have ~$60k saved). I currently reside in Southern California, and assume this isn't the best place to invest (with the limited savings that I currently have). 

Any advice would be greatly appreciated! Thanks,  in advance!

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Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
7y
Originally posted by @Ben Mosh:

I'm brand new to Real Estate investing,  and hoping to get some advice on a few markets that I should consider looking at (for buy/hold strategy). Also would be curious if you have any suggestions on a price range I should be targeting (if I have ~$60k saved). I currently reside in Southern California, and assume this isn't the best place to invest (with the limited savings that I currently have). 

Any advice would be greatly appreciated! Thanks,  in advance!

 Buy and Holds are great investments in Midwest cities. Prices here are still so low but the rent keeps going up! 

Try looking at this article below.

https://www.forbes.com/sites/ingowinzer/2019/01/07/2019-best-markets-for-real-estate-investments/#6b585dbb71f5

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  • Bo Goebel
    Rental Property Investor · Nashville, TN · Member since 2017 · 108 posts · 66 votes
    7y

    @Ben Mosh Market selection is really important, so your question is a great one. 


    Buy and hold strategies are typical in cash-flowing markets, usually off the coast (especially in the Midwest/Southeast). Good market indicators surround the law of supply and demand- population growth, job creation, job diversification, high-median income, low cost of living, etc., and typically are broken down by submarkets. Because real estate is hyper-local, saying "invest in Dallas-Fort Worth" is much too broad to be of any value. One area of DFW could be overbuilt and too expensive, while the neighboring area is growing and has high demand/low supply. 

    SO... for market selection, I would always advise you 1. select 1 or maybe 2 markets, and 2. Invest in a market that you are familiar with. Having a good team/ people you can trust on the ground in the areas you are investing is more important than being in the best market. Try to qualify the market you grew up in, or have family, or visit often. If not, get to know the market well prior to investing in it.

    For price range, with about $60k you should be looking no higher than the $200k range for a turn key rental. Simple math below:
    200,000 X 20% = $40,000 down payment
    Closing costs/set up fees= ~$7,000-10,000
    Initial repairs/cash reserves= ~$10,000

    Getting resources from here regarding the BRRRR method or just long-term buy and hold strategies will be extremely helpful in your search.

    2Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    7y
    Originally posted by @Ben Mosh:

    I'm brand new to Real Estate investing,  and hoping to get some advice on a few markets that I should consider looking at (for buy/hold strategy). Also would be curious if you have any suggestions on a price range I should be targeting (if I have ~$60k saved). I currently reside in Southern California, and assume this isn't the best place to invest (with the limited savings that I currently have). 

    Any advice would be greatly appreciated! Thanks,  in advance!

     Buy and Holds are great investments in Midwest cities. Prices here are still so low but the rent keeps going up! 

    Try looking at this article below.

    https://www.forbes.com/sites/ingowinzer/2019/01/07/2019-best-markets-for-real-estate-investments/#6b585dbb71f5

    2Reply
  • Christopher Hunter
    Investor · Atlanta, GA · Member since 2016 · 335 posts · 144 votes
    7y

    @Ben Mosh  Hello Ben.  Wow the number 1 question on every investors mind.   Let me provide you a link that explains how to find a target market then step by step to research that market. 

    https://joefairless.com/apartment-syndication-school/

    Look at series #5, part 1&2

    To help look up 

    Marcus & Millichap

    IRR

    Costar

    These websites will help with researching the markets you have selected.

    Happy hunting 

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    There is no such thing as the best or the worst in investing. There is only the risk of the asset, the risk of the market, and your risk tolerance. Potential higher returns correlate with higher risk.  That isnt good or bad, its simply a matter of being.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
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  • David Danforth
    Rental Property Investor · Elk Grove Village, IL · Member since 2014 · 31 posts · 25 votes
    7y

    Some of the commercial brokerage firms offer great market research, also sources like IRR and Marcus & Millichap can be of help.

    0Reply
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