Best investing markets in California, Nevada, Texas and Utah

11 Replies

I know this is a loaded question because these states combined cover a rather large territory but the deal is that I live (and own) in Central California and have been considering investing out of state for the obvious reasons. I want to keep it on the Western side for a few years because my fiancé works in sales and travels through these states on a consistent basis anyway. What are the markets/areas/cities worth looking into to narrow my search?  

@Nicole Jones - Loaded question indeed!

I'd say take your definition of deal parameters is and use it to start narrowing your search.  According to a bunch of people San Francisco is a good market (but does it fit in your deal parameters?) Or Modesto could be a good market.  So to get a more pointed answer to your question I'd look at what your parameters are and then look for places where you can deploy your current capital base.  That should narrow down your search a lot more than the nearest 4 states!

@Troy Fisher

EXCELLENT point. Thanks for that. So our goal is to invest in more buy and hold multi-families or SFH. I want any good markets in all states being that we constantly travel through them, as opposed to what is the one best market in these 4 states. Make sense? So, I'm wondering what markets are worth looking into... where my cash flow may be greater than it has been for me in Central California (average of $150/mo per unit) that will fall in any of these 4 states.


the only way to get a true answer to your question is to put boots on the ground and start your due diligence to determine what makes the best economical sense for you and not what others consider acceptable margins. 

@Tim Farrell makes an excellent point, but before you get to the boots on the ground stage you have a lot of work to do on locating a couple of target markets.  But you need to spend some time cranking down your criteria a little more than $150/mo free cashflow.

Let's take a for example:

say you have $100k and want to purchase 2-3 sfh gives you about 33k/per property to acquire meaning you are looking with 25% down at $120k properties.  Now you can spend some time and locate markets where your median house is around $120k.  Work backwards from there and say okay I want 250/mo free cash flow from each property (use some of the calculations to give you a general idea of what your costs are, and cross reference those Median Household prices with places that generate the right rent numbers to make your search a little more specific.  The more specific you get in your goals the easier locating a target market is going to be.  

@Troy Fisher Awesome. I really appreciate that. I know it was a very general question with not much info... but your advice gives me a better idea of next actions to take/what to research. Much more helpful on a forum then to put "my boots on the ground" 

My favorite right now is Philly! Birmingham is really picking up too, Houston is still decent, Indy is okay, and some others. But it all depends on what you are looking for! Every market is different.

Thanks for the info @Ali Boone  This is what I was hoping to get. Personal favorites and markets that are buzzing right now.

By the way... I dig your company name and you totally seem awesome. My fiancé and I have an apartment by the water in Long Beach that we visit on the weekends so we're not too far from you. Good luck with your endeavors and thanks again for the info.   

Oh very cool! I love Long Beach. Anytime you're headed down there and have extra time, let me know and I'll see if I can't swoop down and say hello! Mostly because you like my company name and said I'm awesome :) haha, jk. (sort of)

@Nicole Jones do you consider Ohio in the western side? If so then I'd check out Dayton and CIncy - I'm actively investing in Cincy and love the market. 

I'm interested in the South West areas as well.  Thanks for posting Nicole.

I understand that every market has sub markets and real estate is hyper localized, but any general knowledge from individuals on the ground would be helpful!  That's what this place is all about.  

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here