Clark - I agree with Dan, pending your strategy you can make things happen in most any state these days. What you more likely really need to be thinking about is what markets do you want to deploy your investment assets in?
There is a huge difference of opportunity in different markets around the country, and different markets favor different asset types at this point in time (ie -single family, multifamily, etc.). It's clearly not all doom and gloom out there.
Clark - I agree with Dan, pending your strategy you can make things happen in most any state these days. What you more likely really need to be thinking about is what markets do you want to deploy your investment assets in?
There is a huge difference of opportunity in different markets around the country, and different markets favor different asset types at this point in time (ie -single family, multifamily, etc.). It's clearly not all doom and gloom out there.
The best state to invest in, is the one you live in. I would highly recommend being close to all of your rental properties.
The most important thing is will they cash flow.
But if you want an answer the Wasington, DC area is the best because of the Federal government and the billions that are and will always pump into the local economy.
Houston's housing economy is pretty good for rentals. HomeVestors called it the nations #2 best major city market for REI. Ofcoarse that is homevestors biased opinion, but still.
Lots of good cash flow rentals here, can buy houses for under $50k and rent em out for $700-$950
Properties in CA is just to expensive, in my county, median home price is 675K, even if you bought at a huge discount, it still wouldn't cashflow. Investment property require 20% downpayment, unless you have a lot of cash, you can't buy to many properties compare to some other parts of the country where properties cost 100K.
A good idea is to look at population growth and aim to invest in states that are projected to grow rapidly in the future.
However, take into consideration that if, for example, the population in a small town is 100, and than it grows by 25 people, that will give you a huge boost in population percentage but might not be your best choice due to the low amount of population.
I buy mostly in Baltimore. The rehab/rental market is booming, and their are plenty of deals to get properties under 60-70K and rent them for 850-1000 / month. I have a dozen at the moment and plan to have at least 20 by years end.
Go fo the flyover country nearest to you. I haven't checked but you may want to consider Utah. I'd start at Salt Lake City and then progressively move outward (from what I hear though, you will need a Mormon PM.)
Properties in CA is just to expensive, in my county, median home price is 675K, even if you bought at a huge discount, it still wouldn't cashflow. Investment property require 20% downpayment, unless you have a lot of cash, you can't buy to many properties compare to some other parts of the country where properties cost 100K.
Eric,
Drive north east to east Contra Costa and San Joaquin counties. Plenty of cash flowing deals to be had, and within a quick drive time.
I'm from Marin ($1m median), so I understand where you are coming from.
Indianapolis, IN and Rochester, NY are very solid cash flow markets.
We are also looking into Atlanta.
I disagree with the "invest in your own backyard only" philosophy. In my experience, many investors fail because they try to manage their own properties and sabotage themselves. A good property manager will make your portfolio shine.
If you do not live in a cash flow market, you can not fit the square peg in the round hole.
Find a team of professionals, ask plenty of questions, do your research and make it happen!!!
Hey Eric
I think you are trying to stay too close to your home to identify investment properties. There are places in CA about 50-100 miles away from us selling for 100K and less... IM me and we can plan to get together sometime to talk about it on email or Phone and may be meet up soon. I live in Concord, BTW.
Go fo the flyover country nearest to you. I haven't checked but you may want to consider Utah. I'd start at Salt Lake City and then progressively move outward (from what I hear though, you will need a Mormon PM.)
Tim
Hi, I'm in Utah and the market here is suffering too. Because of the "good" economy here and the do it yourself, hard work mentality, the locals and out of state buyers are driving the prices up to where there is little equity. Therefore it becomes more speculative buying. Selling is hard, and so you have to really get a deal to stand out and likely will discount to flip quickly. If you buy to hold, the word on the street here is that we're looking at a 3-5 year upswing.
I use http://www.HomePriceMaps.com to search for realty prices by zipcode or city. Also-if you don't see any data for your area you can email them your info and they will quickly post home data for your area and email you within a day or two. pretty convenient.
Hello Forums,
I am so new to real estate investing, that I should probably not even be posting.
I am a full time active duty soldier, and I own a couple of properties outside of a military installation. This has been a fantastic investment for me because we ALWAYS have renters. Our renters ALWAYS have a job and always pay the rent. It is easy to to contact their boss if rent problems arise, also.
Best of all, the real estate market seems unaffected around military bases. The populations either remain steady or continue to rise. Even overseas deployments don't affect the housing markets. I have bought and sold 3 different houses, all in different regions of the country and always profited. This is merely a suggestion based on my observations, but rental properties near a military base are a great investment. As far as finding, financing, and negotiating the best deal, well, that is why I am here!
Clark, the Texas economy is booming... it has weathered the best through these hard times... I work with investors that are scooping up several large properties in the growth boundaries of Dallas and Austin... they are picking up prime future commercial and multifamily land for less than 4K an acre in some cases. If I were you I would definitely look in those areas. I have found several 5 - 10 acre future commercial corners that I have been purchasing over the last 2 years. And I live in AZ...
Since you are interested in investing in property in another state, have you thought about investing in property internationally?
There is ample opportunity in Malaysia and it has a very good growing economy. The real estate boom is happening as we speak. I would really suggest that you try looking into this option.
Along with the usual caveats concerning cash flow, you might wish to investigate the local government, as well as local ordinances.
Are they pro-renter or pro-landlord? Is rent-control a possibility? How long does it take and how difficult is it to evict a deadbeat? How powerful are the neighborhood homeowner organizations? What about zoning regs (where I'm at no more than three unrelated people are allowed, no matter how many bedrooms). Are building inspectors easy to deal with during rehab? Is the rental in a historic district? Is there a good supply of honest tradesmen to do your work? And so on and so forth.
All my properties cash-flow, but most everything listed above has caused me grief of one kind or another.
I have a question to those mentioning Texas, particularly Houston. What is the relationship between local housing and the price/profitability of oil? I read that during the mid 80s, Texas real estate was hit hard because the price of oil dropped so low. We've seen 150/barrel drop to under 70 in the last several months. I would think that might affect businesses associated with oil, and thus the local market. Any truth to this?
My view is to stay away from states with high property taxes like TX, PA. etc. I would stay away from the cold states. If you have a vacant home in the winter months the cost to heat the home just so your pipes don't bust might get pricey. I will never buy in PA again. But that's just me
I'm a bit biased since I live here, but Michigan is an excellent place to buy properties which cash flow. If you're looking to flip a property, then you should reconsider since the manufacturing-centric economy is struggling right now.
You can't beat paying $24,000 for a 3/1 home which would rent for $650 a month. There are deals like this all day long. (and these aren't dumps either...in good neighborhoods, with good schools).
Thank you for sharing.Here i have a doubt I was offered a chance to buy property from an elderly relative of mine. He has a warranty deed and the property next to that belongs to my Aunt, who also has a warranty deed. The map at the court house does not show the same as both of the warranty deeds. The nerighboring property owners have crossed their survey lines right over my two relatives. Can this be legal.
Hi All. Job growth is a leading indicator of housing growth. I recently wrote a blog post about Utah, in particular, because it has seen such wonderful job growth. Unfortunately I agree with other commenters that Utah is now "past its prime" as a housing market.
To Dan Carbone: good luck with your strategy! Military base areas have long been very fertile ground for RE investors especially those with a military background. I expect these investors suffered somewhat with all the base closings in the last couple of decades. But, my sense is that there won't be many more closings.
No joke, pull up an election map and check every red state and some of the key battleground states that went blue. Red and the battlegrounds have on average the better cashflow. I've been watching this for the past 3 elections and it seems to be a continuing trend.