I am paralyzed - can’t pick a market

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I am paralyzed - can’t pick a market

Nerlande Joseph
Miami, FL · Member since 2022 · 41 posts · 19 votes

Hello BP investors. 
I am all over the place looking for a market to invest. Norfolk and Virginia Beach, VA because of the possibility to do both STR and LTR with the same property). Memphis, TN and Birmingham, Al for LTR because of low entry market and decent cash flow). Raleigh,NC area because of growth. Jacksonville, Cape Coral, and West Palm Beach, FL because of easy access to property and can do both STR and LTR.

I am about to close on a HELOC with TD bank. I live in Miami, FL and I know I can't Invest here after all my research, nothing on the market makes sense. I currently own a condo rental in Miami that I bought pre-construction. But those days are over.
Now, where do Invest?  As a nurse and in general, I have a high risk tolerance so I don’t mind investing out of state, preferably in the southern US market.  However, I would prefer to invest in Florida due to easy access. 
Budget is up to $400K for multi and $200-$250k for SFR in a B or A neighborhood ( my risk tolerance has a limit 😀. I don't mind a light BRRR, actually, I would prefer that.
I would definitely need a team because I work pretty long hours ( love my profession and my job). 
  My goal is to buy at least one property before the end of the year.  Therefore, I need to pick that market and focus on it.  
Thank you for your help. 

6Reply
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Most Popular Reply

Ruchit Patel
Bay area, CA · Member since 2021 · 383 posts · 306 votes
4y

Hello Nerlande,

I personally invest in Cape Coral and things are going great. I can connect with that team if you like. The way events in recent years have played out, some of the areas of Florida are giving very unique opportunities for great appreciation and cash flow, both. 

I work long hours too and still, it's possible to make a great investment if you know the right people. 

@Zach Lemaster

--Ruchit

7Reply
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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Nerlande Joseph
    If you're stuck on where to invest would recommend looking in the Midwest. Columbus OH is a great place to start looking in the Midwest. It's a nice balance of cash flow and appreciation. Also, it has lots of job opportunities and population growth, and it's landlord friendly. 

    [email protected]614-412-4565
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    2Reply
  • Andrew Bang
    Lender · Texas; Arizona · Member since 2019 · 276 posts · 282 votes
    4y

    In all the areas you mentioned they have all appreciated greatly in the last couple of years.  If you don't want to invest in Miami because you feel houses are overpriced, the same would apply in Tennessee, Virginia, Alabama, North Carolina.  If there is going to be a market correction it will happen in all those areas.   For your first rental I wouldn't go out of state, choose a city within driving distance.   Once you have a few under your belt and have gone thru an eviction or two, move in move out repairs, finding new tenants, then consider going out of state.  

    4Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thank you for your reply; I guess that is the reason I am looking at Jacksonville, West Palm Beach, and Cape Coral. They are the closest cities where I can cash flow easier. 
    I am doing further research on Jacksonville, FL. I would love to find a 2-4 Units in a great area. Ideal would be to STR one unit and LTR the others.

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thanks for your reply. I thought of OH as well, but I am thinking about maintenance in an old building due to the harsh winters. 

    0Reply
  • Ashley Cross
    Lender · Columbus, OH · Member since 2020 · 202 posts · 214 votes
    4y

    There is going to be pros and cons wherever you invest. The first thing you must do is figure out your goals for the property and what pro/con is most important to you. Is cash flow most important? Or appreciation? Or the class of property/tenants? Or the distance from you? Do you want a totally hands off turnkey? Or do you want to get the most bang for your buck? 

    0Reply
  • Issac San Miguel
    Lender · Austin Texas · Member since 2022 · 319 posts · 156 votes
    4y

    FL, NC, SC

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Hi Isaac

    Where in NC, SC, and FL would I get a combination of appreciation and cash flow? 

    Thanks

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Hi Ashley 

    Cash flow and good tenants pool/class of property 

    Thanks

    0Reply
  • Ashley Cross
    Lender · Columbus, OH · Member since 2020 · 202 posts · 214 votes
    4y

    It’s going to be very tough to do a Brrr in a class A or B neighborhood in Florida and cash flow without being very involved with the process. I have a client that just completed a cash out refi for his Florida investment property but he does short term rentals. I’m happy to give some insight with the mortgage/finance portion of things but you’re going to definitely need to vet out a great real estate agent in the areas you’re looking at.  

    1Reply
  • Jared Prevost
    Lender · Tampa, FL · Member since 2020 · 113 posts · 119 votes
    4y

    In my opinion, there are two ways to address risk in terms of getting a return. I don't think a lower entry price home or market really helps with risk unless, of course, you don't have a lot in reserves or sufficient income. In terms of picking a market and wanting a good risk-adjusted return, I would consider the following:

    1. Macroeconomic trends that support long-term success - markets where there is predictable long-term demand growth (primarily through population and job growth) with supply that is ideally constrained. This may be due to high construction costs, geographic barriers, or political reasons (rent controls are an example). If you're already in Florida, I don't see any reason to invest out of state unless you can't afford any rental property here. In Tampa, you can occasionally find fixer-upper 2/1s in some areas for the mid to high $100ks. Other areas are significantly cheaper, Spring Hill and New Port Richey are great spots to invest with a lower entry price.

    2. Local knowledge eliminates risk - you are 100% correct when you say you need to pick a market and focus on it. I know you live in Miami now, but if there's another market you've lived in that has strong macroeconomics, that may be a good place to focus. You can analyze all the information online you'd like, but until you drive the streets in a market, it's hard to know where the spots you'd like are.

    I hope this is helpful for you!

    3Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    4y

    If you click on the magnifying glass in upper right this is literally asked weekly if not more often. 

    TLDR: to me, if your local market works that’s always my preference. If not, you look for the obvious. No state income tax, no bad weather (snow/tornadoes/hurricanes), low property tax and insurance, newer housing stock, away from earthquakes, avoid states that actively hate landlords, states people are fleeing to not fleeing from, and if at all possible a property and state you would like to retire to someday. 

    That will narrow it down to a handful of states which will leave you with maybe 5-10 major markets. Maybe a dozen sub markets. 

    0Reply
  • Cher Li
    Member since 2018 · 15 posts · 8 votes
    4y

    I live in northern Virginia which is part of the DC metro. It is an expensive market and very hard to cashflow. I wanted to invest in other states, like Florida, but I felt nervous about long-distance investing. Hence, I decided to search within Virginia and bought two long-term properties in Hampton Roads (one in Virginia Beach and one in Chesapeake) last year. It is a 3.5-hour drive away. I rely on a professional property manager on these tenant-occupied properties she already has been managed. But, I know if something goes wrong, I can get down there relatively easily. One year later, I now feel more comfortable with long-distance investing, and am branching out to Jacksonville. I took a trip to JAX early this month and am likely to invest there. Since you already live in FL, you have an advantage than all others like me trying to get into FL markets. This will narrow down your search quite a lot. After observing the market a bit and doing deal analyses over time, you will be able to identify deals that work for your criteria. Good luck on purchasing your first investment property!

    3Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thanks Jared

    I will narrow down my search to a few cities in Florida. Will definitely add Tampa to the mix. 
    Thanks

    Nerlande 

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thank you Cer

    Great perspective 

    Do you have an investor realtor or a team you are currently working with in Jacksonville?   

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thanks much Bill

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thank you Ashley 

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thank you Ashley 

    Will keep that in mind. 
    I am actively researching Jacksonville right now for both STR and LTR opportunities. I need a team as I will not be able to self-managed

    1Reply
  • Ruchit Patel
    Bay area, CA · Member since 2021 · 383 posts · 306 votes
    4y

    Hello Nerlande,

    I personally invest in Cape Coral and things are going great. I can connect with that team if you like. The way events in recent years have played out, some of the areas of Florida are giving very unique opportunities for great appreciation and cash flow, both. 

    I work long hours too and still, it's possible to make a great investment if you know the right people. 

    @Zach Lemaster

    --Ruchit

    7Reply
  • Michael Weigum
    Real Estate Agent · Santa Rosa Beach, FL · Member since 2019 · 112 posts · 116 votes
    4y

    Hi @Nerlande Joseph

    When I started my investing journey I looked up and down the east coast trying to find a beach town to invest in. We settled in Myrtle Beach and it has been a great investment for us. I currently own 2 beach front condos that cash flow very well. I have a good team for property management. I'd be happy to answer any other question you have. 

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Hi Richie

    I definitely would like to connect with your team. 
    Cape Coral and Jacksonville are on top of my list and now, Tampa too since it has been recommended. 

    1Reply
  • Ruchit Patel
    Bay area, CA · Member since 2021 · 383 posts · 306 votes
    4y
    Quote from @Nerlande Joseph:

    Hi Richie

    I definitely would like to connect with your team. 
    Cape Coral and Jacksonville are on top of my list and now, Tampa too since it has been recommended. 


    They are not "my team" to be precise, but more like my mentors and the people, I trust to invest with.

    Shoot me a connection request and direct message after that, I will provide their contact info.

    --Ruchit 

    0Reply
  • Cher Li
    Member since 2018 · 15 posts · 8 votes
    4y
    Quote from @Nerlande Joseph:

    Thank you Cer

    Great perspective 

    Do you have an investor realtor or a team you are currently working with in Jacksonville?   

    @Elenis Camargo You should definitely talk to Elenis. She and her husband Isaac started investing in JAX years ago from NY (they both grew up in Miami). They decided to move to JAX after investing there for a few years. Their company is now managing over 200+ LTRs in JAX. They have partnered with the realtor Michael Braddock (whom they personally use and recommend to others) to form the company Thirdstone Properties. I haven't pull the trigger on any property yet, but would definitely work with them when I do.

    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thank you Cher 

    I will definitely send her a request. I need to help picking a location and start analyzing real deals and pull the trigger when one makes sense. 

    0Reply
  • Alex Evans
    Memphis, TN · Member since 2022 · 230 posts · 99 votes
    4y

    Hey @Nerlande Joseph

    The Memphis market is a great place to invest in. The values here have not really kept up with the rest of the country so you can get into the A and B neighborhoods at a lower price point. 

    We see stable appreciation, decent cash flow year on year, and our rents are increasing as fast as ever! 

    I would be more than happy to discuss the Memphis market with you! Feel free to reach out!

    0Reply
  • Carlos JulioPro Member
    Rental Property Investor · Cape coral · Member since 2020 · 55 posts · 30 votes
    4y
    Quote from @Nerlande Joseph:

    Thank you Ashley 

    Will keep that in mind. 
    I am actively researching Jacksonville right now for both STR and LTR opportunities. I need a team as I will not be able to self-managed


     Hi Joseph iam at cape coral area , I'm not huge investor expert by I've been here investing for the last couple of years and things are going well.  Available for a call if you want 

    0Reply
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