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. 

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

    Thank you Alex 

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

    Thank you Michael 

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

    Thank you Carlos. 
    Definitely. 

    0Reply
  • Josh GreenBusiness Member
    Realtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 396 posts · 353 votes
    4y
    Quote from @Nerlande Joseph:

    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. 

    I can totally help find you an STR with 20-30% cash on cash returns year 1 in the greater Tampa area in the $250-$300k range!  Also, living only a few hours away, makes for a nice home away from home and pretty easy to keep eyes on the property.
    [email protected]801-441-8891
    Impact Realty Tampa Bay.4.962 Reviews
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    Suncoast Vacation Homes4.959 Reviews
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    1Reply
  • Josh Pulley
    Member since 2022 · 39 posts · 23 votes
    4y

    @Nerlande Joseph,

    I'm brand spanking new to REI, i am moving to Raleigh in sept. I am currently a firefighter paramedic and my wife is a nurse. We are looking to do a few fix and flips when we get out there with the equity we have built in our Las Vegas home.

    In the long term we are interested in getting some acreage and building out a STR geodome or Swiss a-frame glamping site. Once we get out there and get our feet underneath us it would be awesome to link up and possible do a JV if I've earned my stripes in the real estate game.

    1Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Hi Josh

    For sure, keep me in mind; who knows where we will be in a couple years. 

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

    Hi Josh Green 

    Let’s connect. So we can take a look at some numbers.  I am interested. 

    0Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    4y

    @Nerlande Joseph I agree with everyone who has said to stick with Florida for your first rentals. You are close enough to drive and already know many of the state landlord laws. Best of luck!

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5112 Reviews
    WebsiteView Page
    1Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thank you Ryan

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Nerlande Joseph 

    You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

    https://www.biggerpockets.com/...

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Check out Killeen Texas, this is where I invest. Happy to talk more 832 818 3045

    1Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Will do!

    Thanks you 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    @Nerlande Joseph

    I recommend you consider Houston, TX!

    I personally have rentals here in Houston, the income growth and appreciation are steady.

    A local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the market better.

    Do market analysis on current rents, potential rents, appreciation, etc.

    All the best!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
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    0Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    Thank you!

    It is a lot to take in. I am continuing to learn. 

    Thanks 

    Nerlande 

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

    Thank you!

    It is a lot to take in. I am continuing to learn. 

    Thanks 

    Nerlande 

    0Reply
  • Chad Gray
    Raleigh, NC · Member since 2019 · 57 posts · 54 votes
    4y

    I'm going to echo what a lot of others have said and recommend looking in some of your local markets at least for the first property. Maybe the price points in Miami don't make sense, but I'm sure you can find something that does in some of the tertiary markets within an hour drive of Miami. Also start networking with other investors and wholesalers, if nothing on market makes sense, start looking off market.

    I live in Raleigh and I can tell you houses for 200-250K in A-B neighborhoods pretty much don't exist. Your best bet for finding something in this price range would be to source it yourself off market in C+ neighborhoods.

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

    Thank you much!!!

    0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 997 posts · 1k+ votes
    4y

    Hello @Nerlande Joseph,

    Instead of listing locations as opinions, I will show you a process for selecting good investment locations.

    The location you choose is defined by your goal. If your goal is a dependable passive income, the location is your most important decision. So we are on the same page, a dependable passive income must meet three requirements:

    • Reliable - You continuously receive the income with minimal interruptions, in good and bad economic times.
    • Inflation Adapting - Your rental income increases faster than inflation, so you have the additional dollars you need to maintain the same lifestyle.
    • Persistent – The income continues for a long time; you and your spouse will not outlive the income.

    Selecting a dependable passive income location is the second step in the process of consistently buying dependable passive income properties. The order of the steps is illustrated below.

    Below are some of the most important criteria by which I would evaluate potential locations based on dependable passive income characteristics.

    • Inflation Protection - Unless your rental income increases faster than inflation, your buying power will decline. The best indicator for inflation protection is the pre-COVID appreciation rate. Why pre-Covid? Covid distorted many markets. Locations that have not seen rent or price growth in years started performing. Such increases were transitory since the economic fundamentals of these markets have not changed. And prices in many locations are reverting to the pre-COVID conditions.
    • Jobs - Rental properties are no better than the jobs around them. And, not just the number of jobs is important; the quality (how much these jobs pay) matters too. Also, it is not just about the jobs your tenants have today. Companies have an average life span of about ten years. Even S&P 500 corporations only have an average life of 18 years. So every job your tenant pool currently has will disappear in the next 10 to 20 years. Unless the location has new employers setting up operations and creating new replacement jobs that pay similar wages and require similar skills, the area will decline, and your rents will fall or, at best, fail to keep pace with inflation. One metric for determining the economic health of a metro area is inflation-adjusted median household income. Check the St. Louis federal reserve site for this sort of information.
    • Population - Prices and rents are driven by demand. Where there is little demand, prices and rents are low. And there is insufficient demand to increase prices and rents at or above the current inflation rate. A good indicator of rising demand is population growth. Only invest in locations where both the state and location population are increasing.
    • Operating Costs - It does not matter how much rental income you gross. What matters is how much you net after deducting all operating expenses. There are two types of operating costs; direct costs and indirect costs. Direct costs include insurance and property taxes and such. Do not buy in any location with high insurance and property taxes. Your cash flow must be much higher in these locations to offset the high insurance and property taxes. Indirect costs can be even more expensive than direct costs. These include regulations, code compliances, rental restrictions, and the cost and time to remove non-performing tenants.
    • Crime - Crime is far more prevalent in some locations than others. Employers considering locations for expansion will not create new operations in locations perceived as a high crime. Neighborhood Scouts’ top 100 most dangerous US cities list is the best source of high crime cities I’ve found.

    Once you select a location that meets all the above requirements, the next step is to choose a tenant pool. The only way to have a dependable passive income is if a “good” tenant continuously occupies the property. I will not go into details about the tenant pool here but if you’d like to learn more, I have a free training video that goes into more details. You can access it from the link below or my profile page.

    Nerlande, I hope the above is enough to get you started. Feel free to reach out to me if you have questions.

    [email protected]702-358-8884
    FERNWOOD Team, KW VIP Realty520 Reviews
    WebsiteView Page
    4Reply
  • Nerlande Joseph
    OP
    Miami, FL · Member since 2022 · 41 posts · 19 votes
    4y

    This is such great information 

    Thank you so much!!

    0Reply
  • Michael Haynes
    Investor · Tampa, FL · Member since 2016 · 681 posts · 288 votes
    4y

    Hello Nerlande Joseph, you are working too hard and talking in circles. You need to slow down and learn how to use Zillow for property searches. Do Searches of everything near you, so, to not end up being an Absentee Owner with no Time. This Real Estate Market is not going to last. You could study a lot more and save your Money for when the values come down and work Smarter not Harder. You should watch the youtube video by Reventure Consulting called Buying a Home in 2021 = Financial Ruin? Find out Why.

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

    Hi Michael 

    Thank you for your input. Doing that now; trying to learn more everyday. 
    Thanks. 

    0Reply
  • Michael Haynes
    Investor · Tampa, FL · Member since 2016 · 681 posts · 288 votes
    4y

    Dear Nerlande, Nick at Reventureconsulting.com has incredible youtube videos with analysis of every City, County and State and all conciderations for Real Estate Investing for free. You should try to watch them all. Learn how to use all the different Zillow Searches. I did one for Land in the whole State of Florida a year ago and there was not one lot for less than $100,000, which is a lot more now. My Agent said a year ago she would buy any lot in Tampa for $125,000 to build the one type of 3/2, 1500 sq. foot houses that she was successful with. Take your time and learn how to use the free tools available and decide if Investing in Real Estate is really the way to go. 

    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    4y

    Dart board time...

    Podcast Guest on Show #121
    0Reply
  • Michael Haynes
    Investor · Tampa, FL · Member since 2016 · 681 posts · 288 votes
    4y

    Nerlande Joseph one last thing. You own a Condo in Miami with a full time JOB. The safest and best way for an individual who does not have the expertise to be a full time real estate Investor is to buy a Home. Since you own a Condo you don't qualify for any First Time Buyers discounted loans. You can do some study and look for a fixer upper to move into as your Residence. Maybe find an FHA property. The rule is that if you live in it for 2 out of 5 years and when you Sell your Residence it is Tax-free up to $250,000. You could Sell your Condo at the High of this Market as your Residence, Tax-free. Then, use the profit to buy another Home. You can live in that and find one more to Rent until you are ready to Sell again Tax-free and move into your Rental. I sold my last house in Tampa a year ago and paid $175,000 Cash for a 1500 foot, 3/3 like new Townhome with one car garage, in a 17 unit gated Community with pool. The Valrico area outside of Tampa is rolling hills full of trees, without flooding and almost all this area is like quiet and new.I have not heard a siren for a year and we don't have beggars on every street corner. This is the way to Invest for the long term and not stress.

    1Reply
  • Lucie Tighe
    Property Manager · Tampa, FL · Member since 2022 · 147 posts · 66 votes
    4y

    Invest in Tampa :) I know of a stellar property manager ;)

    0Reply
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