Top location for long distance investing?

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Top location for long distance investing?

Justin Brin

Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:

Which metro you recommend and which metro you don't recommend?

I know California is not so investor friendly due to high taxes and non landlord friendly regulation.

Florida has high insurance costs in some areas?!

What do you think?

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Ali Nichols

Investor · Member since 2022 · 235 posts · 127 votes

@Justin Brin great lead in for discussion, thanks for putting that together. Generally speaking, we have the same approach - avoid areas that are heavy in renter friendly regulation (i.e. CA). Then TX is tough right now because of property taxes. And then, Florida is difficult with insurance right now until that stabilizes.

Then, when we look at Atlanta and Charlotte we see a good amount of supply because of the footprint of large institutiional buyers (i.e. invitation homes).

That leaves the midwest (OH, IN, MO), TN, and the one off markets like Tucson and Albuquerque. Personally, we have had success in small multi-family across OK, TN, MO, KY, IN, OH.

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Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
3y
Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?

I recommend the Columbus market is a great place for out-of-state investors to start their investing. It is a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.
Currently, there are only 3 C class areas in Columbus. They are Hilltop, Whitehall, and South Linden. BRRRR's and flips are only available in this area. The average home prices went up between 24-35% this past year in this area. These areas are projected to turn into C+/B- within the next 1.5-2 years.

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Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Marcus Auerbach:

Where did you pull that data? Milwaukee metro has 1.6M people and median is 225k.

You are correct.
There a few other metros that should be in the list.
In the list above I mostly entered locations I hear a lot and seem to be more papular for investors but I might be wrong and there might be other locations that I missed.
0 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Bob S.:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?

There is a reason investor from around the world have been buying for the last 10 years and still are buying in the Cleveland markets. If you got in , 7 8 years ago, you doubled tripled or more on top of the 20% net caps. I just locked up 7 more last week, all are under 90k, all have rents from 1100- 1400, all have values from 115k- 125k . MF, try finding one, there is simply no inventory.

All the best

I guess Cleveland might be a good option.
I was wondering did Cleveland market crash really bad in the last Real estate crash in 2008-2011?
0 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
What you ended up doing with SFH#2 is on the East side of Indy? You just rented it out?

I guess it makes sense that Multi family units will bring in less quality tenants but if you buy it in a better area and it's in better condition I guess you can still bring good enough tenants?

In LA you can add ADUs so many investors buy properties with alleys or on a corner lot and build an ADU with 2-3 bedrooms and rent it out for good rent but then I think you are subject to rent control since then your property turns into multi-family and in LA there is rent control on multi-family (It might be harder to get insurance now a days for the ADU because of the current insurance crisis in California).
Riverside, CA is cheaper than LA but even there I don't think you will cashflow. Unless you put a higher downpayment.
I heard about Palmdale, Lancaster, CA. They are 1 hour drive from LA and newer houses and have good rents. There might be an option. Prices went up there a lot in recent years. They have a job market there and LA is only 1 hour away so defiantly tenants can find there a job. In rush hour it will take longer than 1 hour but still many drive to Santa Clarita or LA for jobs.
0 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Alfath Ahmed:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?

I recommend the Columbus market is a great place for out-of-state investors to start their investing. It is a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.
Currently, there are only 3 C class areas in Columbus. They are Hilltop, Whitehall, and South Linden. BRRRR's and flips are only available in this area. The average home prices went up between 24-35% this past year in this area. These areas are projected to turn into C+/B- within the next 1.5-2 years.

How you think is Columbus vs Indianapolis? Where there will higher quality tenants?
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Justin Brin:

Quote from @Bob S.:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?

There is a reason investor from around the world have been buying for the last 10 years and still are buying in the Cleveland markets. If you got in , 7 8 years ago, you doubled tripled or more on top of the 20% net caps. I just locked up 7 more last week, all are under 90k, all have rents from 1100- 1400, all have values from 115k- 125k . MF, try finding one, there is simply no inventory.

All the best

I guess Cleveland might be a good option.
I was wondering did Cleveland market crash really bad in the last Real estate crash in 2008-2011?

Might? It was the number 1 rental market for 10 years, over the last 4 years it has still been in the top 4,,,,,, You are waaaaaaay overthinking/ analysis paralysis, the entire country crashed in 08

Good luck
1 Reply
Brandon GoldsmithBusiness Member
Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
3y
I personally invest in Ohio, but it depends on what you are looking for inventory-wise. Value add turnkey, multifamily. Might be a good option to sort that too on what your strategy is and the type of available product. @Justin Brin
[email protected]614-963-3340
1 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
3y
Quote from @Justin Brin:

Quote from @Alfath Ahmed:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?

I recommend the Columbus market is a great place for out-of-state investors to start their investing. It is a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.
Currently, there are only 3 C class areas in Columbus. They are Hilltop, Whitehall, and South Linden. BRRRR's and flips are only available in this area. The average home prices went up between 24-35% this past year in this area. These areas are projected to turn into C+/B- within the next 1.5-2 years.

How you think is Columbus vs Indianapolis? Where there will higher quality tenants?

not even close. go to jobsohio.com and see why. Most new construction jobs after only New York and Dallas, fastest growing millennial population, more mega projects, on and on and on. ohio state university, state capital, larger population
[email protected]786-494-6766
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Damaso Bautista
Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
3y
Quote from @Tim Ryan:

Good, my market still not showing up. That means my strategy of being a contrarian and going in first is working. I'm raising rents often and seeing appreciation in a Blue Ocean. Soon the investors will show up - and I'll begin to sell ;)

HAHA this is the best response so far!!!!! I hope to hear you on a pod cast some day talking about how you found this market and how it worked out!!!
0 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Robert Ellis:

Quote from @Justin Brin:

Quote from @Alfath Ahmed:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?

I recommend the Columbus market is a great place for out-of-state investors to start their investing. It is a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.
Currently, there are only 3 C class areas in Columbus. They are Hilltop, Whitehall, and South Linden. BRRRR's and flips are only available in this area. The average home prices went up between 24-35% this past year in this area. These areas are projected to turn into C+/B- within the next 1.5-2 years.

How you think is Columbus vs Indianapolis? Where there will higher quality tenants?

not even close. go to jobsohio.com and see why. Most new construction jobs after only New York and Dallas, fastest growing millennial population, more mega projects, on and on and on. ohio state university, state capital, larger population

Interesting. I looked in Indeed.com and searched for jobs within 25 miles, full time and found that Columbus and Indianapolis had similar job count (Around 16k). Is there any other way to compare job counts?
0 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Brandon Goldsmith:

I personally invest in Ohio, but it depends on what you are looking for inventory-wise. Value add turnkey, multifamily. Might be a good option to sort that too on what your strategy is and the type of available product. @Justin Brin

I would say I would like to build equity. Not too much headaches (meaning fairly good tenants). Cashflow not negative.
0 Reply
Brian Marshall
Realtor · Oklahoma City, OK · Member since 2014 · 57 posts · 9 votes
3y
@Justin Brin Oklahoma City is a great market for real estate investing. There is a high demand for rentals and Oklahoma is a landlord friendly state.
2 Reply
Anthony L Amos Jr
Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
3y
Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?
Invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 Fortune 500 companies, over +25% population change since 2000, and the 2016 smart city challenge award winner (https://www.columbus.gov/smartcity/). Furthermore, Intel is spending 20 Billion dollars to build two semiconductor plants, and many more great things presently and coming in the future. Needless to say, Columbus will remain a strong real estate market for the foreseeable future.
1 Reply
Zul BudhwaniPro Member
Investor · Grapevine, TX · Member since 2016 · 79 posts · 39 votes
3y
I have to agree with @Lauren McNary Little Rock is solid. Lots of road construction going on throughout the city to improve infrastructure. I have been investing in Central Ark for the past five years and found it to be overall a great experience for steady cash flow.
2 Reply
Sandra Regnell
Rental Property Investor · Vancouver, WA · Member since 2014 · 68 posts · 37 votes
3y
@Justin Brin I just bought one in Memphis with Memphis Invest.
Anyone else here have experience with them? The sale was smooth but no renter yet.
Homes are very affordable there and Memphis Invest is turnkey with integrated property management.
1 Reply
Taz Zettergren
Real Estate Agent · Memphis, TN · Member since 2019 · 365 posts · 264 votes
3y
@Justin Brin I've had a ton of success in Memphis, Little Rock, OKC and Dallas. I tend to stay south of the Mason Dixon line because the weather isn't as tough on properties. Are you investing actively or passively?

@Sandra Regnell Do you you mean Memphis Investments? Memphis Invest re-branded to REI Nation a few years back
1 Reply
Kerry Noble JrPro Member
Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
3y
Central IN
1 Reply
Matt VillantiPro Member
Lender · Houston, TX · Member since 2023 · 21 posts · 8 votes
3y
Love the topic @Justin Brin! We are active in most of these markets but Texas and more specifically Houston has been strong for us. Lots of people still moving to here and while the market has cooled we still have investors making moves with the existing inventory. Florida is still good but the foreclosure system in place has made things harder.

2 Reply
Paul Sedillo
Investor · Austin, TX · Member since 2012 · 75 posts · 47 votes
3y
Quote from @Matt Villanti:

Love the topic @Justin Brin! We are active in most of these markets but Texas and more specifically Houston has been strong for us. Lots of people still moving to here and while the market has cooled we still have investors making moves with the existing inventory. Florida is still good but the foreclosure system in place has made things harder.

I completely agree with you regarding Houston as it relates to strong areas of Texas to invest in. Austin (where I live) has not been attractive for some time now, as the inventory is still overpriced and sellers are slow to adjust pricing - which I understand.
Houston on the other hand has numerous areas that are still a value from an investment perspective.
2 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Sandra Regnell:

@Justin Brin I just bought one in Memphis with Memphis Invest.
Anyone else here have experience with them? The sale was smooth but no renter yet.
Homes are very affordable there and Memphis Invest is turnkey with integrated property management.

What class area is it in? How the pics look? How are you advertising the rental? Which platform are you using?
0 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Taz Zettergren:

@Justin Brin I've had a ton of success in Memphis, Little Rock, OKC and Dallas. I tend to stay south of the Mason Dixon line because the weather isn't as tough on properties. Are you investing actively or passively?

I currently do the management myself but most of the time there is not much work needed. I guess it will be 80% passively 20% active?
0 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Take that a little further with job growth, wage growth, and population growth. At least 1/2 the cities on that list are dying cities. Can you make money there, probably. It is a good long term play? I doubt it. When some giant % of the houses in places like Flint MI are vacant, I don't think that outcome will be good for many of the investors in that town.
2 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
Quote from @Bruce Lynn:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 40
I think another thing you have to be careful about when you look at discuss things like this. One reply talked about all the investment this or that company was making in their area. Sure someone might put in $1Billion data center, but how many jobs does that create? 100? Probably pay well, but look at job growth, not just company investment putting in automated factories with low # of employees.
1 Reply
Justin Brin
OP
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
3y
Quote from @Bruce Lynn:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Take that a little further with job growth, wage growth, and population growth. At least 1/2 the cities on that list are dying cities. Can you make money there, probably. It is a good long term play? I doubt it. When some giant % of the houses in places like Flint MI are vacant, I don't think that outcome will be good for many of the investors in that town.

Where is a good source of data for job growth and wage growth?
0 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
3y
Quote from @Justin Brin:

Quote from @Robert Ellis:

Quote from @Justin Brin:

Quote from @Alfath Ahmed:

Quote from @Justin Brin:

Here is a list of 17 metros in the US that have population larger than 900k and median house price is below 400k:
Which metro you recommend and which metro you don't recommend?
I know California is not so investor friendly due to high taxes and non landlord friendly regulation.
Florida has high insurance costs in some areas?!
What do you think?

I recommend the Columbus market is a great place for out-of-state investors to start their investing. It is a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.
Currently, there are only 3 C class areas in Columbus. They are Hilltop, Whitehall, and South Linden. BRRRR's and flips are only available in this area. The average home prices went up between 24-35% this past year in this area. These areas are projected to turn into C+/B- within the next 1.5-2 years.

How you think is Columbus vs Indianapolis? Where there will higher quality tenants?

not even close. go to jobsohio.com and see why. Most new construction jobs after only New York and Dallas, fastest growing millennial population, more mega projects, on and on and on. ohio state university, state capital, larger population

Interesting. I looked in Indeed.com and searched for jobs within 25 miles, full time and found that Columbus and Indianapolis had similar job count (Around 16k). Is there any other way to compare job counts?

Comparing Indianapolis to Columbus is not even close. Here's a quick one about jobs just in one sector. Columbus is going through one of the largest transformations ever. We have more construction jobs created 3rd in the ENTIRE USA only after Dallas and New York. Central OH leadership plus New Albany Company have made it one of the best tech markets in the country. Check out what Indianapolis has for tech companies. It won't even be close.
Title:
Columbus adds more construction jobs than all but two U.S. cities with Intel, OSU projects
https://www.dispatch.com/story/business/2023/07/07/columbus-...
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