Need inputs - best place to buy rental property ?

9 Replies

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!!

Originally posted by @Nikita Jain :

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!!

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

Originally posted by @Nikita Jain :

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!!

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

@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. 

@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. 

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.

Originally posted by @Michael P. :

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.

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.

 

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