Hottest Markets right now?

Question

Hi everyone! I am currently seeking to grow my portfolio on rental properties. I purched a triplex almost 2 years ago. This property is doing really good. Now that I am currently on the road full time RVing I have some flexibility to travel to any state. My question is what are Good markets that you guys can recommend to invest in?

James Martin · Answer

Has anyone mentioned Memphis?

Stuart Grazier · Answer

@Efrain Hernandez There are tons of great markets with tons of potential to pick solid investments, however I'd recommend choosing somewhere that also makes sense for you with respect to your network and people you trust that can help. You want to invest in a location where you have connections and people that have boots on the ground, whether that be family members, close friends, people within your network that you currently have relationships with, or new people that have been referred to you and you can build that relationship with overtime. Don't just go buy a property in a location because someone here on BP says it's a "HOT MARKET"!

James Wise · Answer

What's up Efrain. Good job knocking out that triplex. As you move on to new investments it's important to note that there are tons of turnkey markets out there. Many are well represented by sellers & turnkey operators here on BiggerPockets. The most popular markets are

• Cleveland
• Toledo
• Memphis
• Birmingham
• KC
• Indy
• Detroit

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.

Mike Huerta · Answer

Hey James, which PM do you work for? I'm currently looking for one to help on a new property.  Thanks!

Efrain Hernandez · Answer

Hey Aaron, this makes so much sense. Thank you so much for the response! I do have a team back home. Similar to you I have high school buddies that are in the trades, real estate agents etc..I definitely want to invest back home since I’m familiar with the terrain. But I also want to get my hands dirty in the next city I relocate in.

Thanks again for your response this really helped me!

@Aaron Hale

Antoine Martel · Answer

Awesome. Let me know if you need help!

Efrain Hernandez · Answer

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Efrain Hernandez · Answer

I love Memphis! Crazy thing is that my wife and I were just talking about Memphis. I also have a good contact of a real estate investor in Memphis.

Thanks @Antoine Martel I think you just confirmed our next move!

Aaron Hale · Answer

Hey, @Efrain Hernandez. It’s great you have the flexibility and are open to invest anywhere you can find the right deal.

Though many on BP could tell you that any city inside or even outside the US is a great market, it’s probably because they know their terrain or have a great team set up to cover that terrain. They know their niche market and, thus, know how to find the great deals. Here’s what I would recommend, but this is just my two cents:

1. Look where you live.

2. Look where you have lived.

3. Look where you haven’t lived but have spent ample time and know pretty well.

4. Look somewhere you would possibly like to live and wouldn’t mind getting to know better.

Then, it’s a matter of developing the right relationships in that area. I live in the FL panhandle but grew up in Akron, OH. I have family and friends there. Some of my high school buddies are now contractors and real estate agents. though, I am completely blind, I trust my network there and can still picture the streets and neighborhoods I am buying in.

I know this wasn’t an answer to your question, but I hope it helps some. Best of luck!

Antoine Martel · Answer

For cash flow I am doing Memphis, St. Louis, Cleveland and Birmingham

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