Need inputs - best place to buy rental property ?

Question

Hello everyone,

I am new to real estate and new to BiggerPockets!! I need advice on which is the best place to buy a rental property (preferably quadraplex or house flip)

My down payment is limited to 40k max. Also looking for realtor in the suggested area.

After reading multiple blogs I came across Florida , Texas, Georgia, Ohio as few good places to buy. But I am unable to narrow it down and have 0 contacts in these area. Also for the downpayment money I have , I don’t think i can get anything.

Please help!!

Zeke Liston · Answer

Hi Nikita, that $40K should get you a property priced around $150K-$170K. I would suggest checking out Columbus, OH.

Dave Poeppelmeier · Answer

@Nikita Jain, that down payment would get you a solid B-class or 2 C-class properties here in Toledo, Ohio. Like everywhere else, prices are up and the market is competitive, but the numbers still work here for cash flow.

Brandon Goldsmith · Answer

There are a lot of good markets in Ohio that could probably fit your goals and criteria. @Nikita Jain

Trevor Reed · Answer

@Nikita Jain I would check out College Station. That price point could work and the rental market is pretty good there. @David Schmiediche maybe you can speak to this?

Account Closed · Answer

Forget Texas the property taxes are insane. Forget Florida the hurricanes and rising oceans will destroy your investment. Forget Georgia prices have already risen to high.

Ohio is the only “green acres” left for investing.

Adrienne Green · Answer

Hi @Nikita Jain! $40k down could get you a rent ready cashflowing rental in the Chattanooga TN area. As @Robert Matelski notes, the market's good for rentals here, and property taxes are very low! Feel free to reach out if you'd like to learn more.

Robert Matelski · Answer

Spot on, re: Florida and Georgia. Texas though... anecdotally, I have found that the property taxes in Texas, as a percentage of the total value of the properties, are actually less than those in Ohio (at least for central TX, where I recently started investing, compared to the Cleveland area, where I have been investing for many years). I'm definitely not knocking Ohio as a good state for real estate investing... I'm just objecting to the claim that Texas taxes are "insane". Here's a Roofstock article that actually did some math as it relates to property taxes (for smaller metros as well as large metros)... and it seems that OH and TX are not really all that far apart tax-wise... https://learn.roofstock.com/bl...

Also, TN and AL appear to be decent states to pursue for rental properties currently. I have a colleague who has been doing pretty well with her Tennessee rental properties, and I may pursue that market myself in the next 12 months.

Michael K Gallagher · Answer

@Nikita Jain I'll jump on the Ohio train here! Columbus is a great market to get into, especially in small multi's. Cleveland and Cinncy are also similar price points and rent rates, I'm a little biased to Columbus as I live here but there is certainly great deals throughout the state depending on your goals. And as you can see those areas are well represented here on BP.

Remington Lyman · Answer

I would check out Columbus, Cincinnati, and Cleveland. All of those markets have a large presence on BP

Adrienne Green · Answer

@Matthew Carroll I always have time for that! It's one of my favorite things to do! :-) I'll reach out.

Need inputs - best place to buy rental property ?

Need inputs - best place to buy rental property ?

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