Best State for rental income?

44 Replies

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!

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.

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.

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.

 

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

 

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

@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.

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!

@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.

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!

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.

@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.

@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!