Best State for rental income?

General Landlording & Rental Properties
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Best State for rental income?

Steve Meyers
Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes

Hi All, I'm a local realtor here in San Diego and I'm finally at the point where I want to invest in real estate, but not here in San Diego as the prices are too high.  I'm looking into Ohio as I know you can get properties there pretty cheap.  I'm curious whose investing in these cheaper markets and also if you're doing Air BNB or have long term tenants in place.  I would be looking to put down 20% as it would be an investment property.  Any feedback on good growing markets for rentals/Air BNBs would be much appreciated!

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Ron Todd
Rental Property Investor · OK · Member since 2019 · 126 posts · 114 votes
6y

OKC is a pretty good cash flow area. 100k homes seem to be a sweet spot for blue collar workers in the city. There are a ton of development/revitalization projects going on as well, hopefully we will see some appreciation out of that, but I don't rely on it. Let me know if you have any questions!

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  • Shelon Hutchinson
    Rental Property Investor · Pensacola, FL · Member since 2017 · 32 posts · 42 votes
    6y

    Hello Steve,

     I am down in Pensacola Florida where there are still affordable properties.  My focus is multifamily.    My investment properties are in SC and Escondido CA.  I do not own any investment property in FL at the time but I will be walking a 50 unit complex in the morning.  If this is an area that you are interested in, let me know.

    1Reply
  • Steve Meyers
    OP
    Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
    6y

    Thanks Shelon, I think what I'm ideally looking for is a house that's pretty cheap $60-$100K that's in a good area where I can Air BNB or place long term tenants.  a 50 unit complex is a little too steep for me at this stage.  Would be interested in learning about the Pensacola FL market though.

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  • Account Closed
    Riverside, CA · Member since 2017 · 412 posts · 296 votes
    6y
    Originally posted by @Steve Meyers:

    Thanks Shelon, I think what I'm ideally looking for is a house that's pretty cheap $60-$100K that's in a good area where I can Air BNB or place long term tenants.  a 50 unit complex is a little too steep for me at this stage.  Would be interested in learning about the Pensacola FL market though.

    I'm cash flowing about $700 per month on average on my turnkeys in Phoenix. I was offered an AirBnb near the stadium downtown but I declined since I don't know that investing model. It still may be available though.

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  • Steve Meyers
    OP
    Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
    6y

    I would imagine houses are more than $100K in Phoenix

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  • Account Closed
    Riverside, CA · Member since 2017 · 412 posts · 296 votes
    6y
    Originally posted by @Steve Meyers:

    I would imagine houses are more than $100K in Phoenix

    It was $60k to buy in and take over an existing mortgage of $164,000 PITI payment of $801 and I have it rented out for $1650

    1Reply
  • Soh Tanaka
    Property Manager · Lindenhurst, IL · Member since 2016 · 854 posts · 506 votes
    6y

    Look into Northwest Indiana also. It's a pretty solid rental market. A lot of turnkey companies are selling properties there now. 

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  • Account Closed
    Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
    6y

    @Steve Meyers

    I have one OOS rental in Indianapolis, and looking to buy 2 more by the end of the year. $60,000 - $100,000 is a good range in Indy for SFR's. Cheap enough to cashflow, but not too many headaches. Solid blue collar areas. This has been my experience anyway, but I've only been active there for about a year. I've heard the property taxes in Ohio are substantially higher than Indiana.

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  • Steve Meyers
    OP
    Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
    6y

    Thanks Jon and Soh this is helpful.  Any certain areas of Indiana you purchased in?

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  • Ron Todd
    Rental Property Investor · OK · Member since 2019 · 126 posts · 114 votes
    6y

    OKC is a pretty good cash flow area. 100k homes seem to be a sweet spot for blue collar workers in the city. There are a ton of development/revitalization projects going on as well, hopefully we will see some appreciation out of that, but I don't rely on it. Let me know if you have any questions!

    3Reply
  • Soh Tanaka
    Property Manager · Lindenhurst, IL · Member since 2016 · 854 posts · 506 votes
    6y

    @Steve Meyers For specific area, I would refer to those who actively sell properties there. If you want names, please PM me. 

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  • Ron Singh
    CA · Member since 2014 · 244 posts · 47 votes
    6y

    @Steve Meyers Atlanta, FL, TX , IN

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  • Zack Howard
    Member since 2019 · 32 posts · 22 votes
    6y

    @Steve Meyers it may be my personal bias because I live here but I LOVE Indiana. Taxes are dirt cheap compared to other places like Ohio and prices/rents are similar. you don't grow your wealth as fast as a Cali home will but you'll cash flow great.

    1Reply
  • Zack Howard
    Member since 2019 · 32 posts · 22 votes
    6y

    If I wanted to invest anywhere else it would probably be Florida.

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  • Steve Meyers
    OP
    Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
    6y

    @Zack Howard thanks for the input, looks like Indiana may be a good spot to invest.  Are there any areas that do well with air bnb or is it more long term tenants?

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  • Zack Howard
    Member since 2019 · 32 posts · 22 votes
    6y

    @Steve Meyers I'm sure there is in some of the bigger cities. We have some around here cuz we have a giant lake that's an attraction but in general but don't think they do very well. To me at least you can't beat a long term rental. Air bnb is more of a second job.

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  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    6y

    @Steve Meyers I recommend both Indianapolis and Kansas City.

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  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    I would check out Columbus, OH @Steve Meyers!

    1Reply
  • Marc Winter
    Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    Hey, don't forget about northeast PA--greater Scranton area!

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Steve Meyers:

    Hi All, I'm a local realtor here in San Diego and I'm finally at the point where I want to invest in real estate, but not here in San Diego as the prices are too high.  I'm looking into Ohio as I know you can get properties there pretty cheap.  I'm curious whose investing in these cheaper markets and also if you're doing Air BNB or have long term tenants in place.  I would be looking to put down 20% as it would be an investment property.  Any feedback on good growing markets for rentals/Air BNBs would be much appreciated!

     Columbus, Ohio is not a cheap or easy market to get into but the rental market is great!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Thomas Kelly IV
    Member since 2019 · 7 posts · 0 votes
    6y

    Lehigh Valley !  East Coast's fastest expanding Hub. 

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  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    San Antonio has a rapidly growing Airbnb market. There is a relatively recent license law that finally makes it a legitimate practice here. I know several investors that are doing well with them in this area, and this is a relatively cheap market. I think if AirDNA will give you some general market data to compare different areas. That's what's lead a lot of the investors I know to come here. There are a lot of drivers for demand for vacation rentals, including almost weekly air force training graduations.

    [email protected]979-218-2286
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  • Nicholas Smith
    Real Estate Broker · Northwest Indiana and Chicago, IL · Member since 2016 · 86 posts · 33 votes
    6y

    @Steve Meyers Hello sir!  I'm an agent and investor in Northwest Indiana.  You can get some pretty good cash flow here at some reasonable prices.  Let's connect at your convenience.  Thanks, Nick

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  • Justin Meagher
    Real Estate Agent · Rochester, NY · Member since 2019 · 14 posts · 10 votes
    6y

    @Steve Meyers

    Hey Steve there are plenty of opportunities in Rochester, NY. The Median price for SFR is 150k. There are quite a few MF that are under 100k, not in the greatest neighborhood, but cash flows very well. Inbox me for more details if interested.

    0Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    6y

    @Steve Meyers I second Ronald Todd on Oklahoma. I see most out of state investors locking down C class/blue collar rentals. I'd say the bread and butter is really 60-80k with a 1% rent to value ratio, but you can get a deal above and below that here. It's a market that's very insulated to recession, so there's some peace of mind that regardless of where we are in the cycle you can continue to cash flow and hold your value. It's not a tried and true air b&b market, but the areas I outlined above have proven to be successful rental markets fo families who just need affordable rent! 

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  • Steve Meyers
    OP
    Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
    6y

    @Alyssa Dyer thanks for the input Alyssa.  I've narrowed it down to OK, OH and IN as far as the states go that I'm looking to invest.  Have to do a little more research but I appreciate the input!

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