Deciding on what market to invest in….
Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes
Deciding on what market to invest in….
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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votesChoosing one city amongst a list of good cities is not a critical decision. You could do well in any of them. All the ones on your list are fine options. I'd have a little more caution with Tampa and Houston just because insurance costs on the coasts are rising and uncertain. That said, I know people in both of those that have done very well.
Far more important than the perfect city is putting together a strong team. A strong team can help you be successful in ANY city. I would argue that picking a good submarket is also more important than being in the perfect city. I'd rather be in a great submarket in a OK city than a OK submarket in a great city.
52 Replies
- 2yGreg ScottPro MemberRental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
Choosing one city amongst a list of good cities is not a critical decision. You could do well in any of them. All the ones on your list are fine options. I'd have a little more caution with Tampa and Houston just because insurance costs on the coasts are rising and uncertain. That said, I know people in both of those that have done very well.
Far more important than the perfect city is putting together a strong team. A strong team can help you be successful in ANY city. I would argue that picking a good submarket is also more important than being in the perfect city. I'd rather be in a great submarket in a OK city than a OK submarket in a great city.
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2y
Quote from @Greg Scott:
Choosing one city amongst a list of good cities is not a critical decision. You could do well in any of them. All the ones on your list are fine options. I'd have a little more caution with Tampa and Houston just because insurance costs on the coasts are rising and uncertain. That said, I know people in both of those that have done very well.
Far more important than the perfect city is putting together a strong team. A strong team can help you be successful in ANY city. I would argue that picking a good submarket is also more important than being in the perfect city. I'd rather be in a great submarket in a OK city than a OK submarket in a great city.
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yThanks Greg! You’re so right, I don’t have to limit myself to just 1! I do think it’s a challenge to learn about submarkets but I guess just networking and talking to people will help. Thanks so much for your input!
Quote from @Angie Briggs:
Quote from @Greg Scott:
Choosing one city amongst a list of good cities is not a critical decision. You could do well in any of them. All the ones on your list are fine options. I'd have a little more caution with Tampa and Houston just because insurance costs on the coasts are rising and uncertain. That said, I know people in both of those that have done very well.
Far more important than the perfect city is putting together a strong team. A strong team can help you be successful in ANY city. I would argue that picking a good submarket is also more important than being in the perfect city. I'd rather be in a great submarket in a OK city than a OK submarket in a great city.
- 2yAlecia LovelessPro MemberMember since 2019 · 3k+ posts · 2k+ votes
@Angie Briggs Greg Scott is absolutely right. Your team can make you or break you. I would be lost without my contractor. He has the best connections for every other type of project I might need done. He can do basic work for most everything but if I need an electrician he has 3 to call, plumbers, 4 of this plus one that works with gas. Foundations he knows guys that do different types of work for that. You get the picture.
My Realtor is also clutch. He gets me deals that aren’t listed yet, he takes me to see whatever I’m interested in even if he thinks it’s a bad idea, then once I’ve seen it he tells me he thinks it’s a bad idea and why. lol. I’ve worked with him for 26 years. While I know lots of realtors in my area we have a history that goes beyond just real estate which is why we get along so well.
They say your network is your net worth and I truly believe that.
I think any solid market you build a strong team in you will be able to find good success in. My preferred market doesn’t have that great a cash flow but I’m building solid equity and have found some great deals by being patient, paying attention to the market and not just buying to be buying but being a little bit picky because I know the better deals do come along if you’re willing to spend a little more time looking for them.
Obviously don’t wait years for the perfect deal, but be selective and don’t just grab the first deal you see with negative cash flow.
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2y
Hi Alecia,
thank you for your input. I agree with Both you and Greg. I have owned a few properties before, so I’m not a total newbie, but they were where I live. Now the market is outrageous. I do think my biggest concern is building the right team. How do I know to trust? I am going to keep educating myself and networking and I’m going to make it happen carefully. I wish you both the happiest thanksgiving. - 2yGreg ParkerBusiness MemberRealtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 669 posts · 536 votes
Let me know if you need any info on Montgomery, Alabama.
Major economic drivers to the area include Hyundai manufacturing, Maxwell & Gunter Air Force Base, major Amazon distribution, Alabama State Capitol, Alfa Insurance, Kinpak, H2 Pharma, Dollar General transport/logistics, Dow Chemical, and Conner Industries to name a few. The Port of Mobile is the ninth largest port in the country and is one reason why economic growth to the state continues to grow. Major exports include containers, coal, laminate, flooring, iron, steel, frozen poultry, chemicals, soybeans, and various lumber products.
Overall, the City of Montgomery is highly focused on attracting large companies to its' vastly diverse and well trained workforce.And, Alabama has the second lowest property taxes behind Hawaii.
MGM Property Pros LLC - 2yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesHey Angie, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!
Quote from @Angie Briggs:
Can anyone tell me what tools/websites/resources you’re using to determine what markets you’re investing in? I just north of Boston and the deals don’t make sense. I am now considering out of state investing and I’ve been looking into Columbus, OH, Indianapolis, Dallas, Houston, Orlando, Tampa. I’m just having a bit of a hard time trying to decide. I’ve done a lot of reading online and have spoken to a few people but wondering if there is more I could be doing to solidify my decision. Thank you in advance!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Angie Briggs:
Can anyone tell me what tools/websites/resources you’re using to determine what markets you’re investing in? I just north of Boston and the deals don’t make sense. I am now considering out of state investing and I’ve been looking into Columbus, OH, Indianapolis, Dallas, Houston, Orlando, Tampa. I’m just having a bit of a hard time trying to decide. I’ve done a lot of reading online and have spoken to a few people but wondering if there is more I could be doing to solidify my decision. Thank you in advance!
talk to agents in all those markets, investors in all those markets, make a decision on your strategy whether it is Buy and Hold, Flip, how to reuse your cash. I talked to a guy yesterday who wants to buy a 400k prop and didn't even have $20k so it's hard to just say. if you want to look at building or new construction options in columbus that's what we focus on
Section 8 Launch52 Reviews - Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yHi robert
Quote from @Robert Ellis:
Quote from @Angie Briggs:
Can anyone tell me what tools/websites/resources you’re using to determine what markets you’re investing in? I just north of Boston and the deals don’t make sense. I am now considering out of state investing and I’ve been looking into Columbus, OH, Indianapolis, Dallas, Houston, Orlando, Tampa. I’m just having a bit of a hard time trying to decide. I’ve done a lot of reading online and have spoken to a few people but wondering if there is more I could be doing to solidify my decision. Thank you in advance!
talk to agents in all those markets, investors in all those markets, make a decision on your strategy whether it is Buy and Hold, Flip, how to reuse your cash. I talked to a guy yesterday who wants to buy a 400k prop and didn't even have $20k so it's hard to just say. if you want to look at building or new construction options in columbus that's what we focus on
thank you for your input. I am not too clueless as to what I want or how I want to use my cash. I have been in real estate before. It’s really trusting where, what areas to focus in and how to find a trusted team. . I have spoken to a couple of people and everyone makes everyone sound good just want to make sure it’s all correct. Thanks - 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Angie Briggs:
Hi robertQuote from @Robert Ellis:
Quote from @Angie Briggs:
Can anyone tell me what tools/websites/resources you’re using to determine what markets you’re investing in? I just north of Boston and the deals don’t make sense. I am now considering out of state investing and I’ve been looking into Columbus, OH, Indianapolis, Dallas, Houston, Orlando, Tampa. I’m just having a bit of a hard time trying to decide. I’ve done a lot of reading online and have spoken to a few people but wondering if there is more I could be doing to solidify my decision. Thank you in advance!
talk to agents in all those markets, investors in all those markets, make a decision on your strategy whether it is Buy and Hold, Flip, how to reuse your cash. I talked to a guy yesterday who wants to buy a 400k prop and didn't even have $20k so it's hard to just say. if you want to look at building or new construction options in columbus that's what we focus on
thank you for your input. I am not too clueless as to what I want or how I want to use my cash. I have been in real estate before. It’s really trusting where, what areas to focus in and how to find a trusted team. . I have spoken to a couple of people and everyone makes everyone sound good just want to make sure it’s all correct. Thanksinterview 5+ people. more than you think until you are tired. doesn't matter what people say I'm just saying don't just talk about the market ask the teams you are working with on the general contracting and agency side about their number of deals, underwriting experience, education, etc.
Section 8 Launch52 Reviews - Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yThank you! I appreciate you taking the time to respond. Happy Thanksgiving 🦃
Quote from @Robert Ellis:
Quote from @Angie Briggs:
Hi robertQuote from @Robert Ellis:
Quote from @Angie Briggs:
Can anyone tell me what tools/websites/resources you’re using to determine what markets you’re investing in? I just north of Boston and the deals don’t make sense. I am now considering out of state investing and I’ve been looking into Columbus, OH, Indianapolis, Dallas, Houston, Orlando, Tampa. I’m just having a bit of a hard time trying to decide. I’ve done a lot of reading online and have spoken to a few people but wondering if there is more I could be doing to solidify my decision. Thank you in advance!
talk to agents in all those markets, investors in all those markets, make a decision on your strategy whether it is Buy and Hold, Flip, how to reuse your cash. I talked to a guy yesterday who wants to buy a 400k prop and didn't even have $20k so it's hard to just say. if you want to look at building or new construction options in columbus that's what we focus on
thank you for your input. I am not too clueless as to what I want or how I want to use my cash. I have been in real estate before. It’s really trusting where, what areas to focus in and how to find a trusted team. . I have spoken to a couple of people and everyone makes everyone sound good just want to make sure it’s all correct. Thanksinterview 5+ people. more than you think until you are tired. doesn't matter what people say I'm just saying don't just talk about the market ask the teams you are working with on the general contracting and agency side about their number of deals, underwriting experience, education, etc.
- Investor · Cincinnati/Fort Thomas, KY · Member since 2015 · 207 posts · 183 votes2y
@Angie Briggs
I invest in Ohio, KY and Florida. The most important is taking action and where can you build a good team or have a mentor.
I would also look at local chapters of national real estate association for vendor/contractor recommendations and networking. Both Tampa and Columbus/Cincinnati have strong chapters. Cincinnati/Columbus meetings are completely online. Tampa is a mix.
If you are interested in bouncing ideas, please reach out.
- 2yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
@Angie Briggs I'd challenge the notion you can't invest locally. If Boston proper is too expensive then find a market 1-2 hours away and own it.
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2y
Quote from @Nicholas L.:
@Angie Briggs I'd challenge the notion you can't invest locally. If Boston proper is too expensive then find a market 1-2 hours away and own it.
Ok you’re right 😂
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yThank you so much Sandra! I will definitely be reaching out. Happy Thanksgiving 🦃
Quote from @Sandra Morrison:
@Angie Briggs
I invest in Ohio, KY and Florida. The most important is taking action and where can you build a good team or have a mentor.
I would also look at local chapters of national real estate association for vendor/contractor recommendations and networking. Both Tampa and Columbus/Cincinnati have strong chapters. Cincinnati/Columbus meetings are completely online. Tampa is a mix.
If you are interested in bouncing ideas, please reach out.
- 2yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
my point is that there are markets 1-2 hours away from Boston where the median home price is less than the overall US median. and some of the markets you mentioned - Tampa, Dallas - are above it.
if you're willing to put some work in, you can pick one of those local markets, find its REIA meetings, go to them, build your core 4, and go from there. there are actually a lot of threads on the forums like this. being in-person and hands-on is a big advantage.
https://www.biggerpockets.com/forums/48/topics/1153432-does-...
good luck.
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Angie Briggs:
Can anyone tell me what tools/websites/resources you’re using to determine what markets you’re investing in? I just north of Boston and the deals don’t make sense. I am now considering out of state investing and I’ve been looking into Columbus, OH, Indianapolis, Dallas, Houston, Orlando, Tampa. I’m just having a bit of a hard time trying to decide. I’ve done a lot of reading online and have spoken to a few people but wondering if there is more I could be doing to solidify my decision. Thank you in advance!
I would buy in Boston if I live in Boston. Thing is I just have to be creative and have to have an edge. If you following the herd then you would not develop your skill as investor. For example, find 1 to 2 hour drive from Boston that would generate more appreciation, find some edge in your local market. Buy gentrification area for example. Check local flips,etc.
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Nicholas L.:
my point is that there are markets 1-2 hours away from Boston where the median home price is less than the overall US median. and some of the markets you mentioned - Tampa, Dallas - are above it.
if you're willing to put some work in, you can pick one of those local markets, find its REIA meetings, go to them, build your core 4, and go from there. there are actually a lot of threads on the forums like this. being in-person and hands-on is a big advantage.
https://www.biggerpockets.com/forums/48/topics/1153432-does-...
good luck.
doesn't realize we have the same answer LOL
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yI understood your point. Thank you for your input. It is much appreciated.
Quote from @Nicholas L.:
my point is that there are markets 1-2 hours away from Boston where the median home price is less than the overall US median. and some of the markets you mentioned - Tampa, Dallas - are above it.
if you're willing to put some work in, you can pick one of those local markets, find its REIA meetings, go to them, build your core 4, and go from there. there are actually a lot of threads on the forums like this. being in-person and hands-on is a big advantage.
https://www.biggerpockets.com/forums/48/topics/1153432-does-...
good luck.
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yYes, piggybacking off of what Nicholas said. I have been in real estate in the past so not totally ignorant to how it all works. I will also say I ate the fact that in Mass your tenants have more rights to your property than you do. I will take it all into consideration. Thank you for your input.
Quote from @Carlos Ptriawan:
Quote from @Angie Briggs:
Can anyone tell me what tools/websites/resources you’re using to determine what markets you’re investing in? I just north of Boston and the deals don’t make sense. I am now considering out of state investing and I’ve been looking into Columbus, OH, Indianapolis, Dallas, Houston, Orlando, Tampa. I’m just having a bit of a hard time trying to decide. I’ve done a lot of reading online and have spoken to a few people but wondering if there is more I could be doing to solidify my decision. Thank you in advance!
I would buy in Boston if I live in Boston. Thing is I just have to be creative and have to have an edge. If you following the herd then you would not develop your skill as investor. For example, find 1 to 2 hour drive from Boston that would generate more appreciation, find some edge in your local market. Buy gentrification area for example. Check local flips,etc.
- Investor · Tampa, FL · Member since 2016 · 681 posts · 288 votes2y
Hello Angie Briggs in Boston. You say you have been in Real Estate? Then, you should know that one Single Family Home will not make you any Money. You only need a Team to be a Real Estate Investor. You make your Money when you Buy, not Sell. You looked around Boston and did the numbers and you have not found a Special Stuation that makes any Money. Real Estate Investing is not like Buying individual Stocks. You don't want to be an Absentee Owner. I have my Cash in One Month T-bills at 5.32% this month. I need access to the Cash when I need it.
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yYes Michael I have owned real estate in the past and have done private lending. I know single families do not make money here. That is why I invest in multi families. Maybe they do somewhere else, I don’t know that. Which is why I am trying to educate on other markets and I asked the question. Thank you for the advice you provided.
Quote from @Michael Haynes:
Hello Angie Briggs in Boston. You say you have been in Real Estate? Then, you should know that one Single Family Home will not make you any Money. You only need a Team to be a Real Estate Investor. You make your Money when you Buy, not Sell. You looked around Boston and did the numbers and you have not found a Special Stuation that makes any Money. Real Estate Investing is not like Buying individual Stocks. You don't want to be an Absentee Owner. I have my Cash in One Month T-bills at 5.32% this month. I need access to the Cash when I need it.
- Investor · Tampa, FL · Member since 2016 · 681 posts · 288 votes2y
Hello Angie Briggs again. You can make money with a SFH under Special Circumstances like what we went through in Florida when Covid started. For years you could not buy a property at Asking Price, because they were being sold for Cash and Over Asking at 8AM when the ads would come out. When Covid started, families were looking for 3/2's with a pool so their children would have something to do during Lock Down for two years. I had Rental Duplexes and some Houses for 30 years in S. Tampa. That is where the Gold Rush started 15 years ago with Tear Down Lots being bought up by all the Builders to construct two story Singles that were 80% to Lot size builds. I bought mine more than 30 years ago when property values in Tampa had not gone up in 10 years. I bought my Retirement Portfolio at the bottom of the Market, Financed by the Owner for the first year or two, at 10% Down and the going rate was 9%. They were all fixer-uppers to raise the rents and I ended up self-managing. I spent a year before Covid looking for a property to retire quiet and safe using Zillow etc. everyday. I sold my four Commercial Lots on the main Highway near the MacDill AFBase and when I found the perfect 3/3 Townhome with garage and a pool in a small gated community on a hill in a Central location in Valrico, I paid all Cash to get it. The Owner was not is the country and I recieved some money back for appliances and fix-ups which I did myself. $175,000 Cash and within the first year of Covid it was worth $320,000. That, is a Special Situation. In the last three years the HOA fees have replaced the roofs, refinished the pool and every building just got painted without a Special Assessment. Our HOA fee is increasing to $290 a month. This is what I am talking about. If not you buy your First Home for all the advantages and Homestead it for 2 out of 5 years to Sell Tax-free up to $250,000 profit. If not, you do your due diligence everyday and get your Money ready to pounce on a Deal.
- Rental Property Investor · Boston, MA · Member since 2023 · 17 posts · 14 votes2yImpressive! Sounds like you’ve done well and I’m happy for you. I do have $250,000 cash from previous sales ready to go for the right situation. Until then, I am educating myself more and talking/networking with others. I will not be impulsive but definitely quick when the right deal presents itself. Thank you for sharing your story with me. Happy thanksgiving 🦃
Quote from @Michael Haynes:
Hello Angie Briggs again. You can make money with a SFH under Special Circumstances like what we went through in Florida when Covid started. For years you could not buy a property at Asking Price, because they were being sold for Cash and Over Asking at 8AM when the ads would come out. When Covid started, families were looking for 3/2's with a pool so their children would have something to do during Lock Down for two years. I had Rental Duplexes and some Houses for 30 years in S. Tampa. That is where the Gold Rush started 15 years ago with Tear Down Lots being bought up by all the Builders to construct two story Singles that were 80% to Lot size builds. I bought mine more than 30 years ago when property values in Tampa had not gone up in 10 years. I bought my Retirement Portfolio at the bottom of the Market, Financed by the Owner for the first year or two, at 10% Down and the going rate was 9%. They were all fixer-uppers to raise the rents and I ended up self-managing. I spent a year before Covid looking for a property to retire quiet and safe using Zillow etc. everyday. I sold my four Commercial Lots on the main Highway near the MacDill AFBase and when I found the perfect 3/3 Townhome with garage and a pool in a small gated community on a hill in a Central location in Valrico, I paid all Cash to get it. The Owner was not is the country and I recieved some money back for appliances and fix-ups which I did myself. $175,000 Cash and within the first year of Covid it was worth $320,000. That, is a Special Situation. In the last three years the HOA fees have replaced the roofs, refinished the pool and every building just got painted without a Special Assessment. Our HOA fee is increasing to $290 a month. This is what I am talking about. If not you buy your First Home for all the advantages and Homestead it for 2 out of 5 years to Sell Tax-free up to $250,000 profit. If not, you do your due diligence everyday and get your Money ready to pounce on a Deal.
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Angie Briggs:
Impressive! Sounds like you’ve done well and I’m happy for you. I do have $250,000 cash from previous sales ready to go for the right situation. Until then, I am educating myself more and talking/networking with others. I will not be impulsive but definitely quick when the right deal presents itself. Thank you for sharing your story with me. Happy thanksgiving 🦃Quote from @Michael Haynes:
Hello Angie Briggs again. You can make money with a SFH under Special Circumstances like what we went through in Florida when Covid started. For years you could not buy a property at Asking Price, because they were being sold for Cash and Over Asking at 8AM when the ads would come out. When Covid started, families were looking for 3/2's with a pool so their children would have something to do during Lock Down for two years. I had Rental Duplexes and some Houses for 30 years in S. Tampa. That is where the Gold Rush started 15 years ago with Tear Down Lots being bought up by all the Builders to construct two story Singles that were 80% to Lot size builds. I bought mine more than 30 years ago when property values in Tampa had not gone up in 10 years. I bought my Retirement Portfolio at the bottom of the Market, Financed by the Owner for the first year or two, at 10% Down and the going rate was 9%. They were all fixer-uppers to raise the rents and I ended up self-managing. I spent a year before Covid looking for a property to retire quiet and safe using Zillow etc. everyday. I sold my four Commercial Lots on the main Highway near the MacDill AFBase and when I found the perfect 3/3 Townhome with garage and a pool in a small gated community on a hill in a Central location in Valrico, I paid all Cash to get it. The Owner was not is the country and I recieved some money back for appliances and fix-ups which I did myself. $175,000 Cash and within the first year of Covid it was worth $320,000. That, is a Special Situation. In the last three years the HOA fees have replaced the roofs, refinished the pool and every building just got painted without a Special Assessment. Our HOA fee is increasing to $290 a month. This is what I am talking about. If not you buy your First Home for all the advantages and Homestead it for 2 out of 5 years to Sell Tax-free up to $250,000 profit. If not, you do your due diligence everyday and get your Money ready to pounce on a Deal.
this tweet is really good and may be relevant to your situation..
think like a real estate appraiser@ThinkAppraiserY
you don’t need 1,000 doors to be financially free, you only need 10-15 paid off homes If homes are too expensive in your area look up to 3 hours drive from your home for an area where the numbers work. Find an area that pencils and buy there. Become an expert in that area, know everything, know the good streets, know all the agents, know all the wholesalers, get to know contractors, know the zoning map, know where the progress is moving, know any specific tenant laws if there are any, know the good property managers, etc If you do these things you’ll improve your life and you’ll have a way better financial future. If you live in the bay area, look in Fresno. If you live in orange county, look in the inland empire or high desert. If you don’t like inland Empire or high desert, maybe look in Bakersfield. If the numbers don’t work in your neighborhood, DONT JUST STOP, find a City or area that works for you. happy thanksgiving
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