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!
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!
Would definitely suggest the mid-west or Arizona and Nevada. Chances are you wont find such prices and the return you are looking for on the coasts. Here in New Jersey you cannot find even a 1BR apartment for that money. The only thing I would suggest is look for more populous areas. Preferably around a freeway, hospital, college. Rural areas could be lucrative due to lower prices, but you may end up having a very tough time finding tenants.
Do you feel the market in Rochester works for wholesaling properties that you may not want to keep as a buy and hold as you build your rental portfolio?
Real Estate Agent · Rochester, NY · Member since 2019 · 14 posts · 10 votes
6y
@Brandon Roberts
Haven’t connected with wholesalers in this market. They mostly target a popular area that everyone seeks (Park Ave, East Ave). The competition in This particular area is out of control. However there is an emerging area to the East of the city where a buy and hold strategy would work well that hasn’t experienced much competition yet.
Wholesaler · Anaheim · Member since 2019 · 1 post · 0 votes
6y
Any of the markets above would be great and I have had fellow investors vouch for Oklahoma especially. Although for me, Indianapolis takes the cake as one of my favorite hybrid markets. Indianapolis has a little of everything depending on your niche. If you like short term rentals, they have a large short term rental presence. If you want to flip a deal, you can quickly find a discounted deal that can usually get you a great ROI. Lastly, if you're looking for a buy and hold, it's fairly common to meet or exceed the 1% rule and to execute the BRRRR method if that is something you were interested in.
Flipper/Rehabber · Baltimore, MD · Member since 2018 · 265 posts · 387 votes
6y
If you have trustworthy "boots on the ground" in the area, I know a lot of buy-and-hold investors who own rentals in Baltimore, MD. Many are flocking away due to the tenant-friendly laws and high taxes, among other things. However, if done right, it can be a great place to buy low and rent high, especially when utilizing section 8 <-at least that's the word on the street!
I'm looking for a small multifamily rental to purchase myself, but haven't come across one I like just yet. Mainly because I want to do the BRRRR method. I may need to find myself a coach or mentor to learn this from.
I've wholesaled and bought/sold properties in Baltimore City and Baltimore County but haven't bought one to rent yet.
If you decide to head to the Baltimore market feel free to let me know and I can send possible options for rentals your way!
Investor · Johns Creek, GA · Member since 2017 · 463 posts · 488 votes
6y
I work in the mobile home park business. Every state has good markets and bad markets. It's the parameters you need to look at, not just the state itself. Some of the parameters I look at - MSA population, recent job growth, future job growth, housing vacant, renters makeup, average rent levels, diverse, stable employers.
Investor · Indianapolis, IN · Member since 2020 · 34 posts · 11 votes
6y
@Steve Meyers Indiana is also a great market for the $60k-$100k range. Single family rentals offer a nice return on your investment with monthly cash flow with low property taxes. I don’t do Airbnb, I have long term tenants in place, and in my experience seen very high tenant demand the markets I invest in throughout Indiana.
Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
6y
@Steve Meyers I love OKC. It's a bit more under the radar than Ohio and with the right provider, you can have access to 8% cap rates all day. I see most tenants stay in place for around 2 years, but if you upgrade a bit and lower rent rate to lock in 2-3 year lease with great tenants.. you'd be doing what I do!
I like to do this in high-risk areas so my purchase price is ultra-low and I might have the cherry on top of more long term appreciation.
Most of the investors I know are purchasing between 60-80k cash flowing rentals. At turnover, you might do a light makeready or of course update if it will increase ROI, but these aren't hugely distressed properties that require major upgrades in order to perform.
Investor · Atlanta, GA · Member since 2016 · 57 posts · 29 votes
6y
Here is a BP Blog Post I wrote about the Memphis, TN market you may find helpful though written with multifamily in mind, most of the remarks apply to single family as well: Best Multifamily Markets and Hidden Gems
Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
6y
Thanks everyone. I appreciate everyone's input this has been very helpful. I've narrowed it down to the following states below, I'd appreciate input on best cities for both Air BnB and for long term tenants if anyone has any experience/input on those as I don't know these areas at all.
Ohio
Indiana
Oklahoma - OKC specifically
Tenn
I'm ideally looking to do 20% down since it will be an investment property, I want to stay around 200K-250K ideally since it will be my first investment property purchase.