Which STATES to invest?
Member since 2021 · 26 posts · 21 votes
Which STATES to invest?
Most Popular Reply
Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes
3yQuote from @Masood Amin:
Quote from @Michael Glunk:
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
1. Yes looking to cash flow
2. Yes looking for a market that will appreciate
3. Multi family
4. Preferably long term but I am open
Hey Masood! Have you considered trying your luck in the Ohio market? For Columbus, you would need to look for 2-4 units in order to cash flow. You can still find relatively turn key duplexes that cash flow here. But it is better if you can find a distressed property and force appreciate it. I can help you manage cosmetic to mid-size rehabs here in Columbus.
For Cleveland, you could find both 1-4 unit properties and cash flow well. it's more of a cash flowing city.
Turn key properties are definitely the easiest to manage, but I can introduce you to my network of people.
Hope this helps and if you're interested in exploring this market further, let's connect and discuss how I can assist you!
41 Replies
- Investor · Member since 2020 · 337 posts · 213 votes3y
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
Midwest is one of the popular places. But I would look for landlord friendly states/cities where you can maximize spending power for maximum returns.
- Developer · San Antonio, TX · Member since 2019 · 177 posts · 81 votes3y
Anywhere in San Antonio
- Member since 2021 · 26 posts · 21 votes3y
Quote from @Vadim F.:
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
Midwest is one of the popular places. But I would look for landlord friendly states/cities where you can maximize spending power for maximum returns.
Any zip codes in mind that you’d recommend
- Investor · Member since 2020 · 337 posts · 213 votes3y
Quote from @Masood Amin:
Quote from @Vadim F.:
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
Midwest is one of the popular places. But I would look for landlord friendly states/cities where you can maximize spending power for maximum returns.
Any zip codes in mind that you’d recommend
Research Ohio cities, Kansas City, Detroit, etc. There are too many zip codes to possibly list. Just research landlord friendly cities/states where you can cash flow.
- Member since 2021 · 26 posts · 21 votes3y
Quote from @Vadim F.:
Quote from @Masood Amin:
Quote from @Vadim F.:
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
Midwest is one of the popular places. But I would look for landlord friendly states/cities where you can maximize spending power for maximum returns.
Any zip codes in mind that you’d recommend
Research Ohio cities, Kansas City, Detroit, etc. There are too many zip codes to possibly list. Just research landlord friendly cities/states where you can cash flow.
I’ve heard Ohio isn’t too landlord friendly… how accurate is that ? Have you invested there before
- Investor · Member since 2020 · 337 posts · 213 votes3y
Quote from @Masood Amin:
Quote from @Vadim F.:
Quote from @Masood Amin:
Quote from @Vadim F.:
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
Midwest is one of the popular places. But I would look for landlord friendly states/cities where you can maximize spending power for maximum returns.
Any zip codes in mind that you’d recommend
Research Ohio cities, Kansas City, Detroit, etc. There are too many zip codes to possibly list. Just research landlord friendly cities/states where you can cash flow.
I’ve heard Ohio isn’t too landlord friendly… how accurate is that ? Have you invested there before
Not sure where you heard that but from my research its one of the friendliest. Search BP for peoples experience in Ohio cities and make your judgment that way.
- 3yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
43201 - anywhere in Ohio
- 3ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
I would recommend OH. Whether it be cash flow Cleveland, appreciation friendly Columbus, or a mix of the both in Cincinnati
Sam McCormack Realtor - 3yMwazomela ThurmondBusiness MemberRealtor · Newport News, VA · Member since 2022 · 32 posts · 26 votes
@Masood Amin Virginia. It was even voted one of the best states to retire on top of being great for investing whether it's Northern Virginia or Hampton Roads in Virginia which includes 7 cities with tourist and government opportunities.
Whether you're looking for short term, midterm, vacation rentals, tenants who could rent for multiple years or even decades.
Time and time again, I hear that the military (Navy, Army, Air Force, and Coast Guard) are constantly moving people into the area which means that compared to other markets, we are stabilized and don't have as much volatility as other markets.
I'm a real estate agent with Berkshire Hathaway HomeServices Towne Realty in Newport News VA serving all of Hampton Roads Virginia.
If you have any questions about the market or getting started as an out of state investor, I'd be happy to help you any way I can.
- Real Estate Agent · Columbus, OH · Member since 2017 · 203 posts · 170 votes3y
Central Ohio
- 3yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Masood Amin:
Quote from @Vadim F.:
Quote from @Masood Amin:
Quote from @Vadim F.:
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
Midwest is one of the popular places. But I would look for landlord friendly states/cities where you can maximize spending power for maximum returns.
Any zip codes in mind that you’d recommend
Research Ohio cities, Kansas City, Detroit, etc. There are too many zip codes to possibly list. Just research landlord friendly cities/states where you can cash flow.
I’ve heard Ohio isn’t too landlord friendly… how accurate is that ? Have you invested there before
Lol. Where did you hear this?
- Real Estate Agent · Evergreen, CO · Member since 2015 · 126 posts · 73 votes3y
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes3y
This question is way too broad and you can make it work in almost any zip code. Plus you are going to get a lot of Realtors saying their market is best so they can get the business (sorry, not sorry).
It all depends on what your goals are, how much capital you have, etc. If you are in California, house hacking can be a great strategy (that's what I'm doing). Are you looking to do commercial, residential, short term?
Think about what you want and work backwards from there.
Plus if you go where everyone else is going, now you are just competing.
What I've learned over the years is once something is reported as a "hot market," it's likely close to too late. It is a "hot market" because there is data in the past that supports it.
Here is what I recommend: Find desirable areas and invest just outside of it (could be city, state, or even neighborhood). As that area gets priced out, tenants have to go somewhere.
- Member since 2021 · 26 posts · 21 votes3y
- Member since 2021 · 26 posts · 21 votes3y
Quote from @Michael Glunk:
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
1. Yes looking to cash flow
2. Yes looking for a market that will appreciate
3. Multi family
4. Preferably long term but I am open
- Member since 2021 · 26 posts · 21 votes3y
Quote from @Rick Albert:
This question is way too broad and you can make it work in almost any zip code. Plus you are going to get a lot of Realtors saying their market is best so they can get the business (sorry, not sorry).
It all depends on what your goals are, how much capital you have, etc. If you are in California, house hacking can be a great strategy (that's what I'm doing). Are you looking to do commercial, residential, short term?
Think about what you want and work backwards from there.
Plus if you go where everyone else is going, now you are just competing.
What I've learned over the years is once something is reported as a "hot market," it's likely close to too late. It is a "hot market" because there is data in the past that supports it.
Here is what I recommend: Find desirable areas and invest just outside of it (could be city, state, or even neighborhood). As that area gets priced out, tenants have to go somewhere.
Okay for sure thanks for the reply! That makes sense. Which areas do you personlly see as target areas for investment?
- 3yMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
I like 43201, 43202, 43206, 43207, and 43222 in Columbus, Ohio.
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - Investor · Member since 2020 · 337 posts · 213 votes3y
Quote from @Masood Amin:
Quote from @Michael Glunk:
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
1. Yes looking to cash flow
2. Yes looking for a market that will appreciate
3. Multi family
4. Preferably long term but I am open
Cash flow and appreciation is hard to find but it exists. Columbus you can cash flow and see appreciation but your cash flow will be less compared to cities like Detroit and Cleveland for example. Not to say that Detroit and Cleveland aren’t appreciating but they are at lower pace. Cleveland is 3-5% compared to Columbus is 8%. I’d suggest studying up on different markets and see what every market brings.
- Member since 2021 · 26 posts · 21 votes3yClevland caught my attension for a while but I just here that tenents in that area are very problelmatic. What are some good zip codes in Cleveland?
Quote from @Vadim F.:
Quote from @Masood Amin:
Quote from @Michael Glunk:
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
1. Yes looking to cash flow
2. Yes looking for a market that will appreciate
3. Multi family
4. Preferably long term but I am open
Cash flow and appreciation is hard to find but it exists. Columbus you can cash flow and see appreciation but your cash flow will be less compared to cities like Detroit and Cleveland for example. Not to say that Detroit and Cleveland aren’t appreciating but they are at lower pace. Cleveland is 3-5% compared to Columbus is 8%. I’d suggest studying up on different markets and see what every market brings.
- Real Estate Agent · Evergreen, CO · Member since 2015 · 126 posts · 73 votes3y
Quote from @Masood Amin:
Quote from @Michael Glunk:
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
1. Yes looking to cash flow
2. Yes looking for a market that will appreciate
3. Multi family
4. Preferably long term but I am open
IMO you can cash flow just about anywhere with a little creativity, but I am going to assume you aren't looking for creativity and just want a straight purchase at a standard investment property amount down. While you answered my questions, you didn't give specifics. Which I forgot to ask for! :)
Specifics are key, and IMO key towards you actually making a purchase. If you don't get real with yourself and force yourself to make choices, you will continue in this stage of analysis paralysis and never get anywhere. e.g. You will always question your self and your next move. You will wonder if one approach is better than the other, etc. Just pick a goal that you feel works for you now. You can change it later as you get experience. But you need something to shoot for/search for.
You can get cash flow and appreciation in just about any market if you wait long enough. So I will generalize...(note there are always exceptions to what I am typing below. That's the beauty of Real Estate Investing! I am making broad-stroke generalizations, that while can be disproved based on certain locations, generally hold true.)If you want higher initial cash on cash, low purchase price for a small multi family, and lower appreciation over time compared to other markets...then the Rust Belt is a good place to invest and @Remington Lyman shared some zip codes for you. My personal preference is near corporations and/or universities as I like to increase the potential for a consistent tenant base.
If you want cash on cash, medium to high (this I relative) purchase price for a small multi-family and strong appreciation over time (no guarantees, but going off of historical data), then an area I invest in is the Rocky Mountain region. Some zip codes: 80001-80007, 80033, 80034, 80439, 80433. (Front Range Colorado areas) OR 81526, 81501-81507, 81521 (Western Slope of Colorado areas).
- Investor · Member since 2020 · 337 posts · 213 votes3y
Quote from @Masood Amin:
Clevland caught my attension for a while but I just here that tenents in that area are very problelmatic. What are some good zip codes in Cleveland?Quote from @Vadim F.:
Quote from @Masood Amin:
Quote from @Michael Glunk:
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
1. Yes looking to cash flow
2. Yes looking for a market that will appreciate
3. Multi family
4. Preferably long term but I am open
Cash flow and appreciation is hard to find but it exists. Columbus you can cash flow and see appreciation but your cash flow will be less compared to cities like Detroit and Cleveland for example. Not to say that Detroit and Cleveland aren’t appreciating but they are at lower pace. Cleveland is 3-5% compared to Columbus is 8%. I’d suggest studying up on different markets and see what every market brings.
You will have problematic tenants in any area. Do your due diligence screening tenants and you shouldn’t have any problems.
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes3y
Quote from @Masood Amin:
Quote from @Rick Albert:
This question is way too broad and you can make it work in almost any zip code. Plus you are going to get a lot of Realtors saying their market is best so they can get the business (sorry, not sorry).
It all depends on what your goals are, how much capital you have, etc. If you are in California, house hacking can be a great strategy (that's what I'm doing). Are you looking to do commercial, residential, short term?
Think about what you want and work backwards from there.
Plus if you go where everyone else is going, now you are just competing.
What I've learned over the years is once something is reported as a "hot market," it's likely close to too late. It is a "hot market" because there is data in the past that supports it.
Here is what I recommend: Find desirable areas and invest just outside of it (could be city, state, or even neighborhood). As that area gets priced out, tenants have to go somewhere.
Okay for sure thanks for the reply! That makes sense. Which areas do you personlly see as target areas for investment?
I live in Los Angeles so I house hack here. If I had the money, I would be looking in surrounding counties. In the meantime I'm looking in more affordable markets like Birmingham AL and Nashville. However both have been becoming difficult to make the numbers work without major price reductions.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Masood Amin:
Hello BP,
Simple question. Which neighborhoods are trending right now for rental properties? Can you put some zip codes below? Thank you
Im from california but am open to any market
OH has been the #1 overall rental market for many years, still going very strong. We used to get 30 -35% net caps, cash purchase, now still getting 15- 20% net,,,,,,
Good luck
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Masood Amin:
Clevland caught my attension for a while but I just here that tenents in that area are very problelmatic. What are some good zip codes in Cleveland?Quote from @Vadim F.:
Quote from @Masood Amin:
Quote from @Michael Glunk:
@Masood Amin What are your goals? It's hard to recommend a specific location without knowing what you are trying to accomplish?
Example:
1. Are you just about cash flow?
2. Do you want a market that has a better chance than others on appreciation?
3. Why type of properties are you interested in? Single Family, Small Multifamily etc.
4. Are you looking for a long term, mid term or short term rental? Or some combination of those?
The rust belt can look great at first glance because of the cash flow potential, but can be weaker in other areas (I personally own in Michigan). Areas like the Rocky Mountains can do decent on cash flow and very well on depreciation, appreciation and amortization. (Speaking to long term rentals here.) Short term rentals can do great on all aspects including cash on cash. But of course will require a bit more work and higher management fees if using a PM. These things are all manageable. (Note: In the Rocky Mountain region I personally invest in Colorado and Montana.)
1. Yes looking to cash flow
2. Yes looking for a market that will appreciate
3. Multi family
4. Preferably long term but I am open
Cash flow and appreciation is hard to find but it exists. Columbus you can cash flow and see appreciation but your cash flow will be less compared to cities like Detroit and Cleveland for example. Not to say that Detroit and Cleveland aren’t appreciating but they are at lower pace. Cleveland is 3-5% compared to Columbus is 8%. I’d suggest studying up on different markets and see what every market brings.
I have done 100s and 100s and 100s in Cleveland, its all about screening. Just need to have a team in place,
Good luck
- 3yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Definitely recommend Columbus, Ohio! Great mix of appreciation and cash flow. On top of that, population growth and jobs moving to Columbus - Intel, Nationwide, Honda, Amazon, etc. As a local investor and agent, I'm still seeing tons of 1% and positive cash flow deals here. I work with a lot of investor clients that are still able to fully BRRRR and pull their money entirely out during the cash out refinance so to answer your question, tons of deal flow remaining here. Let me know if you have any questions!
Jimmy Lieu, Red 1 Realty4.9120 Reviews
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