I invest in Boise, ID- it's the fastest appreciating market in the nation and depending on the source, one of the fastest growing cities in the US too. Appreciation in Q2 was 7%, so on a $300k property, you would have made $21k in appreciation between April and June in your sleep. That's pretty good stuff.
Hi again, @Sridhar Yedupati, I will add this one thing to help in your search: I think that a state is too large of a filter to think through. For example, I could say that Arizona is a great place to own property, but the reality may be that Pheonix is a great place to own, but Yuma is horrible. A local example for me would be that Oklahoma City, OK is great to own property in, but I would never recommend buying in Bug Tussle, OK as the market is unproven (plus the population of 5 is very volatile).
I invest in Boise, ID- it's the fastest appreciating market in the nation and depending on the source, one of the fastest growing cities in the US too. Appreciation in Q2 was 7%, so on a $300k property, you would have made $21k in appreciation between April and June in your sleep. That's pretty good stuff.
Invest in. I work with 6 out of state investors who have all crunched numbers and decided to bring their money this way. Would be happy to discuss numbers with you if you are interested.
Think outside the box a little bit and consider buying acreage property here in Idaho in the path of growth. As we continue to grow, land will be rezoned and can be subdivided down the road into residential, multi-family, commercial or industrial depending on the property. I have found that tenants with horses or cows move less than people renting a single family or multi-family home.
I did really well with that years ago on a 10 acre parcel that I held until sewer became available and sold it to a developer.
^ I second @David M Trapani. There are good areas in Tennessee to own rental properties. I work out of Middle Tennessee & there are great areas to own rentals here. Nashville continues to grow & attract businesses. However, the price of houses in Nashville are too expensive if you are looking for the 1% rule.
Clarksville has a military rental community that is north of Nashville. Houses there are cheaper and rent can be higher for shorter term rentals. It is also a hot market right now.
Hey Bonnie! Thanks for the shout out ( : Blessed former (CA) client invited me to visit TN some 3.5 yrs ago. Wow! Love it. Moved several CA equities here. Hope to do more. Bonnie your absolutely right! Clarksville is up & coming, as per Fortune magazine August 2020 (lists Clarksville, TN top 10 US REI investment locales - link below). Love Franklin of course, but also outlying areas growing Columbia, Murfreesboro, etc. Properties on or near the water (TN has gorgeous lakes & rivers) are hot as people edge away from big city & Draconian Covid restrictive lifestyle. Cheers & carry on!
Bonnie and David are right that Clarksville is hot. Too hot for me. I live here and haven't found a property to cashflow. Sale prices have gone up much faster than rents. I am looking elsewhere in Tennessee.
@Linda Manning You're right, Clarksville is hot. But there are absolutely still good rental deals. I sold a 1% rental in Clarksville today. Are you only looking on the MLS?
@Courtney Trahan I am looking at MLS. I don't know how to find deals otherwise. I have read about driving around to look for houses and mailing letters to people in a certain zip code (I am not going to do that.) I don't know what else to do. Except pray :)
@Sridhar Yedupati You need to define your long term goals, and what real estate investing strategy you want to pursue. Then you should think of places you want to visit or live, or are very familiar with.
Blindly asking BiggerPockets, or anywhere else, is going to receive a lot of incomplete, or biased, responses, and ultimately won't help you make an informed decision.
@David Pere how's hawaii RE? i know the pandemic has been a huge hit in hawaii. is it still worth investing? or is it too risky to consider STR property? i'm looking at diamond bay/waikoloa area in oahu hawaii
@Sridhar Yedupati am not sure about elsewhere but i'm in southern california & has been looking to purchase in big bear lake. the market is super hot...too hot. we kept getting outbid every single time. it's not worth investing when we can't make positive cashflow.
@David M Trapani i read the news. i cant believe bakersfield made in to the list. its a joke. i remembered when my sister bought a place a long time ago. then the big 2008 RE crashed. Her home value dropped significantly & foreclosed. i wouldnt invest anything there.
Speaking in terms of the Boise area, wholesaling and flipping has been extremely well to my wife and I.
We have little experience with rental properties, but we have wholesaled many fixer uppers to landlords. I hear these speculators talk constantly about appreciation in the Boise area. The run up on prices has been tremendous, but remember Boise was one of the hardest hit areas in the last downturn. A house bought in 2007 for $135k shortsold in 2010 for $50k.
To me it would make sense to buy based on cash flow rather on appreciation. Especially at this point in the market. Last time I ran numbers with BP calculators, we’d need to put 50% down or have 50% equity to have any real cash flow on a rental here. Show me anything here close to a 1% rent to value ratio that isn’t in a bad neighborhood where you’d have to rent it out by the bedroom
@Sridhar Yedupati The best place to invest in depends on your investment goals. If you are looking for a good return, a recent study done by Rented, Inc. rated the FL panhandle for best ROI. There are definitely some other hot markets right now but demand is high and supply is low, so investors often have to be ready to make a quick decision in the hot markets. It is difficult to determine which state is the best because it is a case by case basis depending on the market, individual property, and the owner. Once you narrow down the market, be sure to hire an experienced realtor that is knowledgeable about the regulations in their vacation rental market so that you can find the right property in a rental friendly neighborhood. I'm happy to answer any specific questions if you'd like to connect!
@Nadia O. I actually live in San Diego now, but i've heard they are up to their old STR-tricks making things difficult there. I could introduce you to my go to agent there, who is a house flipper, and she would be able to answer more accurately. I love Hawaii!
@Sridhar Yedupati I think the best question is where are you based? What do you consider a good return? Knowing these things will help. As far as areas to invest, I would check out Bakersfield as one of the hotter housing markets right now, and good cash flow for the State of CA as well. Feel free to PM me to chat further.