Hidden Gem markets

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Hidden Gem markets

Member since 2023 · 82 posts · 46 votes

Anyone willing to share some hidden gem markets for STR, MTR, and LTR? Would love to hear where you have been investing in and how well its been going!

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Daniel Bourdeau

Real Estate Agent · Chicago, IL · Member since 2020 · 48 posts · 43 votes

I invest mainly in one of the smallest markets in Colorado - one that doesnt jump off the page from an 'averages' standpoint, but my unique luxury units crush it.

My general philosophy is that there is not a wide discrepancy in expected returns between different markets. Sure, there's some variation, but the average strategy produces about the same result across almost the whole US since there are so many investors hunting outperforming markets - they tend to revert to the mean.

That being said, there ARE strategies that outperform in almost any market. My formula is to build ground up unique structures with rare and interesting amenities (Geodomes, huge hot tubs, fire pits, outdoor chill areas ect) in small under the radar markets. I think this strategy works in almost any market.

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Andrew FreedBusiness Member
Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
2y
At least locally, I hear the Berkshires in Massachusetts are very profitable for STRs. Same with the Cape Cod area. Also, Arcadia in Maine seems to be a profitable STR market as well.
For MTR markets, it all depends on a highest concentration of hospitals. That will be the largest determinate on whether its a good market since that is your most common avatar for a tenant. I'd limit my search to states and cities with a high concentration of hospitals if that is your strategy.
For LTR's, I'd recommend focusing on markets that have a high concentration of multifamily. LTR's are way easier to make work with a multifamily than a single family. That is what I did, I targeted Worcester MA, which has the largest concentration of multifamily in the Massachusetts market.
I hope this helps and good luck on your search!
[email protected]781-964-3200 Podcast Guest on Show #69
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Sarah KensingerPro Member
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
2y
Haha, I know of some but not sure if I want to tell that info to thousands of people. There goes the hidden gem pretty quickly! Personally talk with people, call vacation home realtors in areas that have caught your eye, call STR PM companies, and do lots of research. The internet is loaded with vacation ideas on where to travel next.
[email protected]330-557-3021
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Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
2y
STR Insights provides this information pretty regularly. If you're not already following them you might want to do so. You don't necessarily have to subscribe to their service in order to get their emails. Kenny Bedwell provides a lot of good, free market data.
[email protected]
2 Reply
Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
2y
Quote from @Andrew Freed:

At least locally, I hear the Berkshires in Massachusetts are very profitable for STRs. Same with the Cape Cod area. Also, Arcadia in Maine seems to be a profitable STR market as well.
For MTR markets, it all depends on a highest concentration of hospitals. That will be the largest determinate on whether its a good market since that is your most common avatar for a tenant. I'd limit my search to states and cities with a high concentration of hospitals if that is your strategy.
For LTR's, I'd recommend focusing on markets that have a high concentration of multifamily. LTR's are way easier to make work with a multifamily than a single family. That is what I did, I targeted Worcester MA, which has the largest concentration of multifamily in the Massachusetts market.
I hope this helps and good luck on your search!

While MTRs have historically been associated with traveling nurses, this guest avatar is now MUCH broader than that. In fact, Furnished Finder, a lead gen site that was created for travel nurses, reports that searches by non-medical professionals now exceeds those of medical travelers and they expect that trend to continue. While you may be able to rent your property as an MTR if you're near a hospital that uses travel personnel, there may be all sorts of travelers looking to book a furnished rental in your area: digital nomads, construction workers, corporate travelers, relocations, insurance placements, academics...the list goes on. You can check their site for data on the number of people searching for accommodations in your area. Also, look to see if there are extended stay-type hotels in your town. This will also give you an idea if there is a demand for midterm rentals in your area.
[email protected]
2 Reply
Daniel Bourdeau
Real Estate Agent · Chicago, IL · Member since 2020 · 48 posts · 43 votes
2y
I invest mainly in one of the smallest markets in Colorado - one that doesnt jump off the page from an 'averages' standpoint, but my unique luxury units crush it.

My general philosophy is that there is not a wide discrepancy in expected returns between different markets. Sure, there's some variation, but the average strategy produces about the same result across almost the whole US since there are so many investors hunting outperforming markets - they tend to revert to the mean.

That being said, there ARE strategies that outperform in almost any market. My formula is to build ground up unique structures with rare and interesting amenities (Geodomes, huge hot tubs, fire pits, outdoor chill areas ect) in small under the radar markets. I think this strategy works in almost any market.
6 Reply
Philip Gollson
Investor · Miami · Member since 2020 · 13 posts · 9 votes
2y
Would echo the Cape Cod area is only super profitable during the summer time, you may very well see zero bookings during the winter months. If you prefer heavy seasonality and don't mind running at a loss for a few months, that may be a good market for you.
0 Reply
Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 710 votes
2y
@Alex Ng

I like to think about investing where people live. One way to find hidden gems is to look at the data of where companies are moving, job growth, demographic changes, limited building capacity, and investments in pedestrian infrastructure. From an emotional side, where would you want to live? I'm biased about the Tahoe Reno, NV market because the proximity to CA wealth, people, and companies moving to the area is forcing appreciation. The proximity to Lake Tahoe, mild weather, no state income tax, geographically constricted building by the mountains, and landlord friendly. There are still relatively affordable deals for SFH and MF. There are some investment gems here for LTR, MTR, STRs. Feel free to reach out. I'm happy to have a conversation about it.

1 Reply
Alex Nauth
Member since 2019 · 17 posts · 28 votes
2y
You can make money in most markets. I like boring midwest cities in red states. Fewer regulations and people dont necessarily want to go there, but they have to. I always offer nicer amenities in larger properties and will get people for 3-5 days on average. Doesn't always have to be a hot vacation spot to make money!
2 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
2y
There are places here and there that do better than others.

Really, you can do OK in a lot of markets. It is all dependent on the deal.
The best areas can still do poorly if you make a bad decision on the costs.
3 Reply
Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
Still getting 15%+ CoC returns in the Greater Tampa Area ;)
[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
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2 Reply
Stephanie Walker
Realtor · Charlotte, NC · Member since 2023 · 245 posts · 231 votes
2y
I’m biased because I live in and invest in Charlotte, NC and specialize in MTR, specifically. Our owner/investor clients are happy with their purchases and their monthly returns. So much so that more than half of them have purchased a second property between 6 months to a year of working with me.
If for some reason I chose to invest in a state other than NC or SC, I’d be looking in Jacksonville, FL or Augusta, GA.

2 Reply
Jonathan BombaciBusiness Member
Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
2y
There are lots of markets that could work for you they wouldn’t work for others. I would ask you what markets do you already know? Where do you like to go on vacation? Where do you already have a support system in place? Don’t come to my market and try to compete with me when I have advantages, it’ll be an uphill battle and you’ll get adversely selected against because you don’t know the market. Go to the markets you know and figure out a investment niche that works best for you in that market.

That said I’ll tell you where we are investing and why, but I wouldn’t recommend them to you unless you have a reason to be in that market.

We invest in MA, NH, and ME. I will only invest in markets that I can drive to in 2 hours or less. When I enter a new market we try to get to 100+ units in 12 months or less. In order for my strategy to work I need to get scale quickly. Right now we’re investing along RT in MA from Lowell to Athol. We are the largest property owner in the city of Gardner which is along RT 2 but own things in surrounding towns too.

We’re also investing along RT 16 in NH from Dover to Farmington with a large portfolio in Rochester.

We like these locations due to easy highway access. In MA we can get to Boston or Worcester from RT2 pretty easily, there are commuter rails there as well. For NH we like Portsmouth a lot but cannot buy at scale in Portsmouth at prices that make sense for cashflow so we’re looking at the sub markets instead.

i hope this helps. Best,
[email protected]978-710-8611
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y
Greenville SC is one of the top 2 locations that people are moving to therefore all types of rentals are doing very well.
I've heard Huntsville Alabama is also a hot area.
1 Reply
John McDonald
Member since 2023 · 158 posts · 96 votes
2y
Fort worth, TX has some great deals at the moment. Lots of gentrification in south Fort Worth. Properties can be purchased for $100K, fixed for $50K and rented for $1,800/month. Several other areas in Texas offer similar deals but, frankly, we're seeing this trend in most of the hottest markets, Tennessee, Florida and, as @John Underwood mentioned, South Carolina.
Find 'em, fix 'em, and today, hold 'em.
Good luck.
0 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y
Quote from @Stephanie Walker:

I’m biased because I live in and invest in Charlotte, NC and specialize in MTR, specifically. Our owner/investor clients are happy with their purchases and their monthly returns. So much so that more than half of them have purchased a second property between 6 months to a year of working with me.
If for some reason I chose to invest in a state other than NC or SC, I’d be looking in Jacksonville, FL or Augusta, GA.

Charlotte and Ashveville are definitely good areas.
1 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y
Quote from @John McDonald:

Fort worth, TX has some great deals at the moment. Lots of gentrification in south Fort Worth. Properties can be purchased for $100K, fixed for $50K and rented for $1,800/month. Several other areas in Texas offer similar deals but, frankly, we're seeing this trend in most of the hottest markets, Tennessee, Florida and, as @John Underwood mentioned, South Carolina.
Find 'em, fix 'em, and today, hold 'em.
Good luck.

I'm big on holding more properties for mailbox money.
0 Reply
John McDonald
Member since 2023 · 158 posts · 96 votes
2y
Quote from @John Underwood:

Quote from @John McDonald:

Fort worth, TX has some great deals at the moment. Lots of gentrification in south Fort Worth. Properties can be purchased for $100K, fixed for $50K and rented for $1,800/month. Several other areas in Texas offer similar deals but, frankly, we're seeing this trend in most of the hottest markets, Tennessee, Florida and, as @John Underwood mentioned, South Carolina.
Find 'em, fix 'em, and today, hold 'em.
Good luck.

I'm big on holding more properties for mailbox money.

@John Underwood

"mailbox money". haha . I've never heard that before. Love it!
1 Reply
Zachary Cain Humphrey
Investor · KY · Member since 2022 · 204 posts · 77 votes
2y
Kentucky is a slept on market for STR
0 Reply
Alex Nauth
Member since 2019 · 17 posts · 28 votes
2y
Quote from @Zachary Cain Humphrey:

Kentucky is a slept on market for STR

What areas are you in? I've looked into Louisville but heard mixed reviews because of regulations. Also bene looking into the Red River Gorge area.
2 Reply
Zachary Cain Humphrey
Investor · KY · Member since 2022 · 204 posts · 77 votes
2y
Quote from @Alex Nauth:

Quote from @Zachary Cain Humphrey:

Kentucky is a slept on market for STR

What areas are you in? I've looked into Louisville but heard mixed reviews because of regulations. Also bene looking into the Red River Gorge area.

Hello Alex! Avoid Louisville as their regulations within the town are heavily anti STR. However the surrounding markets outside of Louisville are doing great along the Bourbon Trail like Lawrenceburg KY, Bardstown KY, Shepherdsville KY, Taylorsville KY.
I currently have purchased 3 acres in the Red River Gorge and currently constructing a 1700 sq foot a frame which will be a full time STR so I also heavily believe in the STR market of the Gorge!
Lets connect and talk Kentucky investing in messenger. We are hoping to partner with others in 2024 to develop the lots we have with at least 2 more builds for something more unique next build we do, like a container home potentially.
Areas around Mammouth Cave national park and Land between the lakes also offer cash flowing STR areas.
0 Reply
James WilcoxBusiness Member
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 600 votes
2y
Quote from @Alex Nauth:

Quote from @Zachary Cain Humphrey:

Kentucky is a slept on market for STR

What areas are you in? I've looked into Louisville but heard mixed reviews because of regulations. Also bene looking into the Red River Gorge area.
If you want to STR properties in KY I am your guy! However, yeah as mentioned some markets are under the radar for STR in KY. I have gotten more messages in the last year or two about STR in the bluegrass state than the prior 10 years combined.
REI James w/ eXp Realty54 Reviews
Website View Page
1 Reply
Zachary Cain Humphrey
Investor · KY · Member since 2022 · 204 posts · 77 votes
2y
Quote from @James Wilcox:

Quote from @Alex Nauth:

Quote from @Zachary Cain Humphrey:

Kentucky is a slept on market for STR

What areas are you in? I've looked into Louisville but heard mixed reviews because of regulations. Also bene looking into the Red River Gorge area.
If you want to STR properties in KY I am your guy! However, yeah as mentioned some markets are under the radar for STR in KY. I have gotten more messages in the last year or two about STR in the bluegrass state than the prior 10 years combined.

We need to jump on a phone call sometime about where you think I should best be looking
0 Reply
James WilcoxBusiness Member
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 600 votes
2y
Quote from @Zachary Cain Humphrey:

Quote from @James Wilcox:

Quote from @Alex Nauth:

Quote from @Zachary Cain Humphrey:

Kentucky is a slept on market for STR

What areas are you in? I've looked into Louisville but heard mixed reviews because of regulations. Also bene looking into the Red River Gorge area.
If you want to STR properties in KY I am your guy! However, yeah as mentioned some markets are under the radar for STR in KY. I have gotten more messages in the last year or two about STR in the bluegrass state than the prior 10 years combined.

We need to jump on a phone call sometime about where you think I should best be looking
We have talked some but just shoot me a text anytime with any questions.
REI James w/ eXp Realty54 Reviews
Website View Page
0 Reply
Shaan Puri
Member since 2023 · 27 posts · 15 votes
2y
Quote from @Zachary Cain Humphrey:

Quote from @Alex Nauth:

Quote from @Zachary Cain Humphrey:

Kentucky is a slept on market for STR

What areas are you in? I've looked into Louisville but heard mixed reviews because of regulations. Also bene looking into the Red River Gorge area.

Hello Alex! Avoid Louisville as their regulations within the town are heavily anti STR. However the surrounding markets outside of Louisville are doing great along the Bourbon Trail like Lawrenceburg KY, Bardstown KY, Shepherdsville KY, Taylorsville KY.
I currently have purchased 3 acres in the Red River Gorge and currently constructing a 1700 sq foot a frame which will be a full time STR so I also heavily believe in the STR market of the Gorge!
Lets connect and talk Kentucky investing in messenger. We are hoping to partner with others in 2024 to develop the lots we have with at least 2 more builds for something more unique next build we do, like a container home potentially.
Areas around Mammouth Cave national park and Land between the lakes also offer cash flowing STR areas.

Hi @Zachary Cain Humphrey, I am looking into Louisville, I am double minded on the permits. On one hand, that seems like a great move since it would limit STR supply and push STR prices up but being OOS this has some challenges

Let's connect and talk investing? Would love to hear how the build is going

0 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
I'm a bit late to the party here but I have to mention Detroit.
It's still a hidden gem because, while people are starting to figure it out, many still think Detroit is left for dead and a terrible market.
I have 12-doors there, one of which is a STR. The others are LTR's. They all crush it.
The thing is Detroit is a complex market and you really have to do your homework and work with the right people.
It continues to fly under the radar but it won't for long.
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