As we get into Q4 '23, and move into 2024, which cities are y'all looking at?

Question

I'm always curious about where people think the market, real estate market, etc., go and curious to which cities you guys are looking at for whatever real estate deal-- commercial, STRs, buy & holds, fix & flips?

I think the fed funds comes down to 4-4.5 by EOY 2024(mortgages for primaries in the low 6s, high 5s).

Targeting a few STR cities/areas-- Smokies for one, Angel Fire in NM. LTRs looking at Madison, WI,  continuing in Apex/Cary NC, Myrtle Beach(for LTRs not STRs).  Considering some others.

Melissa Nash · Answer

I like to diversify. You can do that by strategy or even state or break in down a million ways.

This is my current strategy:

1. STR's for cashflow & long term growth + plus I get to use them too. I call this a Vacation Rental Lifestyle. Where I get to use and enjoy them and they make me $.

2. Turnkey easy passive in high cashflow markets (Ohio areas and Birmingham) average 8-10% return year 1. Affordable entry and done-for-me.

3. Hybrid BRRRR in Memphis where the rehab team finds me the deals and rehabs them for a cost but they do all the work. Less income back that a traditional BRRRR but I literally did nothing.

There is plenty of cashflow to be had in these areas for me and I am able to keep growing.

Jimmy Lieu · Answer

Hi Jason, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Evan Hopple · Answer

@V.G JasonI'm actively investing in the Columbus, OH market! Nationwide Children's Hospital is a good option short term rentals here. Low taxes, and landlord friendly city. I'm buying now before rates go down and everyone jumps back into the market

Travis Biziorek · Answer

I continue to invest in Detroit as well as look for opportunities locally (Central Coast of CA).

I'm not convinced we see rates down to 4.0% in 2024 unless there's a big catalyst that causes the Fed to take serious action. I could see 4.5% though.

The point is, I don't see things changing all that much.

Detroit is my go-to obviously because I'm already heavily invested there, know the market well, and the numbers still work even with rates where they are today. If rates come down the numbers will be even better for folks buying now as they'll be able to refi.

In terms of STR's... I don't want any more of them at this point unless it's super local. We're building an ADU here at our primary and plan to STR it.

I run one in Detroit that does phenomenally well but it's too hands on for me to want to scale STR's in general. I can't imagine having to compete in a vacation market where guests are far more demanding. If I was younger, didn't have a family and other priorities, sure. But right now I prefer to simplify.

James Wise · Answer

We recently moved into the Columbus market. It's been great for us thus far. I'm so used to Cleveland it's so nice to be in a market where there are population gains instead of losses lol.

Gregg Knight · Answer

Jimmy, I'd love to learn more about your market in Columbus as I am looking to start building a LTR real estate portfolio. Thank you sir

Bradley Buxton · Answer

For west coast markets Reno / Tahoe is worth taking a look.  Population growth from CA, jobs moving from the Tech industry leaving CA (Tesla, Microsoft, etc..), house building is geographically limited, shortage of new housing starts, and proximity to Lake Tahoe.  All of these combined make for a very stable equity build market and consistent rent increases.

Evan Hopple · Answer

I prefer $350k refinanced down to 6% over waiting for $420k @6%

Malachi Weary · Answer

Nice Jim, when you mention operate do you refer to a team to securely aquire,manage, and maintain your portfolio

As we get into Q4 '23, and move into 2024, which cities are y'all looking at?

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