Hey Peter I don’t, this is just the I formation I’ve found.
It seems like these areas pop up a lot on podcasts and forums.
How long ago did you buy your TN properties?
My properties are in NY, I'm just starting to look at TN.
If you don't already own an investment property, be careful buying a smaller investment property that's too far from home. Better to learn locally before venturing to other markets. Good luck.
I own a 4 plex in Oregon. But you can’t buy in Oregon for under 750k
I’m looking out of state for cash flow, investing in Oregon is a appreciation move for me.
I’m looking for 80’s built 4 plexes and newer. I’m not even going to mess with old plumbing, electrical, and so on. I’m a electrician so there is no way I’ll be buying a house that has knob and tube. I’ve demoed those types of houses and they are extremely expensive to put new up to date wire in. Plus they burn peoples houses down.
Just playing devil's advocate.... by what criteria are you selecting these markets? Anybody can throw out a few cities and say they're good areas to invest. But what makes these markets a wise choice?
If we are talking about multifamily, here's what you need in order for a market to be attractive (to us).
Demand side of the equation:
1. Population growth
2. Diverse employment growth
3. Median income that can support your projected rents (min. 3 times the projected rent)
Supply side - Assuming you are looking at B/C class assets, then:
1. They aren't building any new assets in that class (only new properties which do not compete).
Result - Increasing demand. Stable supply. The laws of economics means that is a bull market.
This defines most markets in Florida.
Your comment about being hit during a recession is true, well, kind of. The recent pandemic is a perfect example of what I am going to say.
Buy next to Disney or the beaches or there touristy areas - yep, you're going to get into trouble. It's always about the sub-market.
That's not what we do. Florida is growing very rapidly through healthy diverse employment growth. Properties are performing extremely well because of that growth and I don't see any of the underlying fundamentals changing anytime soon.
I could go on and on, but I hope this helps a little.
What are your thoughts about the lag time of rental increases that has been apparent in the raleigh market for a long time? Potentially it will catch up all at once?
Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 139 posts · 128 votes
Yep--I am in San Antonio. Been here for 15 years. Explosive growth. Values tripled in that timeframe. Anyone need a local San Antonio type person to bounce ideas off or want to understand the local market I am your guy. I also co-chair the local Professional Investors Guild Chapter (PIG). Ex-Broker license # 562295. Pure investor, trainer, mentor now... Get'r done. Oh yeah--21 years in military as well (Air Force--TACP / Space Officer /Politico-Military Affairs officer). Love love love me some real estate -- 30 years in the game
I’m looking for cash flow, do you invest in those areas. Midwest is no where near the prices in Oregon. I just got a deal on a 4 plex that was 750k, I’m cash flowing on it and it will appreciate pretty nicely
I'm in Kansas City and it's a very good cash flow market, although not what it once was. Real estate prices here have skyrocketed as well.
@Patrick Flanagan I'm OKC all the way! Like most markets inventory is tough and you've got to be aggressive to lock something down right now. I'm a big fan of all off-market stuff for that reason. For reference in this market I'm seeing A class duplexes for ~5% caps and I'm aware of a remodeled 12 plex property in a path of progress area for ~6% cap. So, the numbers aren't where they were pre-corona but they're not bad especially when you compare price point to other markets.
@Peter Nikic why? If point of entry is $300k in your local area and you can find a solid realtor and PM for an OOS investor with a $50k entry... why should you “buy local” first. Many people have disproved that notion.
@Peter Nikic why? If point of entry is $300k in your local area and you can find a solid realtor and PM for an OOS investor with a $50k entry... why should you “buy local” first. Many people have disproved that notion.
Buying local allows someone to more easily learn the process when buying their first property.
For me as long as the cash on cash ROI is 8-10% I'd look to markets that are less vulnerable and that guy can find good property managers and vendors in.
Great insight, do you look at smaller markets out side of big cities?
I live in a small town 30 mins from Portland Oregon, but since it’s close a lot of investors started buying in the “path of progress” since Portland is the new San Fransisco. They are making a killing
I’m not a expert on any of these markets, but these markets have came up over and over on podcasts, bp forums, blogs. Google right now, top out of state markets, these places will pop up.
It was more of me saying I recognize that these markets keep popping up, and I want to get some experts opinions on why they invest there.
There’s obviously tons of awesome markets, I just listed those as the top places I’ve found to start looking for cash flowing properties. Great job growth and rental demand.