Looking for advice on Markets

[Tomer Yeshayahu]

Hi everyone,

I’m currently a real estate investor outside the U.S., and I’m looking to start investing within the United States.

I’m specifically looking for a Republican-leaning city with positive population growth, strong appreciation potential, and a market that supports both fix-and-flip deals as well as long-term rentals. I also prefer landlord-friendly states.

My target price range is around $100,000 per property (pre-renovation).

I’d really appreciate any insights, comments, or recommendations- especially if you can connect me with reliable local agents or investor-friendly brokers.

Thank you in advance for any help!

[Steve K.]

Yikes. I'd go back to square one and reconsider your strategy entirely. Using this criteria, you'll be limiting yourself to the least desirable locations. In these areas, it will be nearly impossible to find a decent property manager. You'll have tenants that will be very rough on the property and won't always pay their rent, turnover will be high, theft will be an issue, contractors will be hard to find, rent won't be enough to cover expenses even if things go smoothly (which they won't), and properties in this asset class will have tons of deferred maintenance and capital expenses. You will end up losing money then selling at a loss. 

Also, there are only 2 major cities in the US that are majority Republican: Fort Worth, Texas and Oklahoma City, Oklahoma. Every other major city and urban area is left-leaning. Typically only rural areas are majority Republican and rural areas are not great places for real estate investing. 

The three golden rules of real estate investing are location, location, and location. You'll be setting yourself up for success if you invest in quality markets that are desirable places to live, with a diverse job market, limited supply and high demand, and population growth. Nowhere with $100k properties is going to have positive population growth or strong appreciation potential. If they did, they wouldn't have such cheap property. These areas can work for local investors with the right skillset, but rarely work for remote investors. Anywhere with $100k properties is likely in an area experiencing post-industrial decline. I'd stick with good markets personally unless you are looking to lose money and deal with a lot of frustration.