Hey everybody! I just found out about BP about a month ago and I am HOOKED on the podcast! My husband and I have been interested in real estate for years, but we didn't know where to start. Right now my husband is considering relocating with his job, and this basically means we could move to just about any place in the country at this point! So, here's my question to you guys. ....Based on the current mid-2013 market, if you could move to any place in the US and start investing in properties, where would you go?? I'd LOVE to get any and all feedback!
Glad to see you and your husband are interested in real estate. Smart move!
Judging by your question, it sounds like you want to move to the same market you plan to invest in. That may be fine, however, keep something in mind that I believe strongly and say often, "Live where you want. Invest where it makes sense!"
The point of that is you don't need to live where your properties are located (unless you plan to be a hands-on rehabber). Many (or most) investors buy where they find the best deals, and that's usually not in their own backyard. Something to think about and consider.
Having said that, you may want to download my "2013 Housing Market Forecast". It's a free report you can download on my website.
Feel free to post any other questions in the forums.
Britta, you can't base a move solely on market factors. You need to detemine what is important in your lifestyle, and then see how the real estate market is doing there.
For example, if you're a skier and snowboard enthuiast, then despite Florida's active real estate market, you might find this a miserable place to reside.
By the way, I have a friend in the Cody area and he is doing quite well in his local real estate market.
I guess the answer to your question depends a lot on what you mean by "investing in properties". Flip? Buy and hold (rent)? Wholesale? Commercial? Residential?
I only know my area (NE Ohio), but from reading the many excellent posts on BP, it is obvious some areas are well-suited to specific strategies while others are not.
Michael, thanks for the reply! Don't worry, my husband and I are just about as cautious as they come! We've been taking into account a ton of different factors about where we'd like to live, but we also are feeling just adventurous enough right now to step out and live somewhere new for a few years. :)
LOL! I guess I did sound a little reckless in my initial post. The thing is, I'm currently living in a middle-of-nowhere, drug-infested, rather ugly town in Wyoming. (No offense to the locals. There are some upstanding people here as well!) So, as far as where I'd like to live... Um, somewhere else? ;) I grew up near Green Bay, and I've also lived in Portland. Eventually we'll end up living in Wisconsin or Wyoming long-term, but for right now we want to try something new.
Glad to see you and your husband are interested in real estate. Smart move!
Judging by your question, it sounds like you want to move to the same market you plan to invest in. That may be fine, however, keep something in mind that I believe strongly and say often, "Live where you want. Invest where it makes sense!"
The point of that is you don't need to live where your properties are located (unless you plan to be a hands-on rehabber). Many (or most) investors buy where they find the best deals, and that's usually not in their own backyard. Something to think about and consider.
Having said that, you may want to download my "2013 Housing Market Forecast". It's a free report you can download on my website.
Feel free to post any other questions in the forums.
Hey Britta W. welcome to BiggerPockets! That's awesome that you are digging the Podcast! We love to record and I feel like a kid in a candy store getting to pick the brains of these people each week. It's really awesome!
Hi Britta, I know we've PM'd but I thought I would respond to this publicly also. Here are my thoughts:
1: You mentioned your capital is limited. Therefore, I think it is best to make your first investement your primary residence. This will allow you to get into a property at around 3.5% down payment. Especially since you mentioned you want to rehab, you'll need to keep your money for materials and use your own labor to keep costs down. Later down the road, invest in places elsewhere once you have gotten your feet wet and have more money.
2: I know a lot of people say that there are good investments almost everywhere, and I know that is generic, but I have to agree. You are wanting to find a good markets, but in reality you are not neccessarily investing in the market. You are investing in 1 house. Yes, that one house will be affected by the market as a whole, but there are many factors that determine that house's value and many of the them you will affect. Is it possible to add value to house in a slow market like Houston? Absolutely. So that I don't completely dodge your question with a generic answer I will say this: Since your capital is limited, that should make your target market a cheaper one. This will give you more money to do repairs. At the same time, I think a historically stable market is a great opportunity for a young, first timer investor to get their feet wet while having less risk of getting burned. You'll have many years to take big risk and go for the bigger markets. I vote keep it cheap. Some markets that come to mind:
- Texas (houston)
- Midwest areas
My opinion, I'd stay away from the ones you know can be volatile:
-Las Vegas
-Phoenix
-Miami
*Please note that I am NOT saying I expect these markets to go down or up. I just think stable markets are a great place to get your feet wet.
1: You mentioned your capital is limited. Therefore, I think it is best to make your first investement your primary residence. This will allow you to get into a property at around 3.5% down payment. Especially since you mentioned you want to rehab, you'll need to keep your money for materials and use your own labor to keep costs down. Later down the road, invest in places elsewhere once you have gotten your feet wet and have more money.
Hey everybody! I just found out about BP about a month ago and I am HOOKED on the podcast!
Same here Britta W. I just listened to the first one with Marty Boardman, now I'll have to listen to them all. It was so interesting, informative, and motivational.
I'd say if you are thinking about flipping, you can really go anywhere. You want to be able to flip to primary homebuyers because you'll make more than flipping to investors, so stay out of the investor hotspots like Atlanta and Houston and you'll be fine. Just go somewhere with a growing population and you'll always have buyers!
In was originally drawn to your post because I originate from Billings, Montana and to find someone from that general area is rare. Even though you are moving, I love connecting with people who know where I came from. I am stationed in Virginia right now and I can say that it isn't too difficult to find something to suit you even in a place so different from home. Do you have any ideas or inclinations at all as to where you might move?
Jason Rhine... My husband & I are both drawn to the northwest and northeastern states. Washington, Oregon, New England, etc. And we have family in Wyoming and Wisconsin, so in all likelihood we'll probably end up living in WY or WI sometime in the future. But I figure we can always move to one of those states once we have a business up & running. For right now I'm just eager to get to a place where I know that the housing market will be profitable and get some hands-on experience for a few years. It's a really unique opportunity for us to be able to basically go anywhere right now and I'm really wanting to make the most of it!
I'd say if you are thinking about flipping, you can really go anywhere. You want to be able to flip to primary homebuyers because you'll make more than flipping to investors, so stay out of the investor hotspots like Atlanta and Houston and you'll be fine. Just go somewhere with a growing population and you'll always have buyers!
Hey Ali Boone would you mind clarifying this for me? Are you saying she should stay away from flipping in Houston because it's an investor hotspot? I'm not sure I understand your point.
Sorry, didn't clarify or get specific on that one. There is always potential for flipping in any growing market. I suggest focusing on markets or areas where you can flip to primary home buyers because they pay more than investors. In Houston there are probably plenty of areas where the buy and hold investors are not (wherever the price-to-rent ratios aren't as advantageous for the buy and hold investors) where you could flip easily to primary home buyers. Where I suggest staying out of is the areas where all the investors are buying up the inventory because if you get a property there, you will most likely end up flipping it to an investor rather than a primary home buyer, meaning you won't get as much.
Not sure that explains it much better, but in my observation it's best, and most profitable, to flip in areas where the buy and hold investors are *not*.
Welcome! If you are doing the 'slow flip' by living in the property, you can really live anywhere. Why not start where you are at currently, in WY? Find something from HUD or FNMA where you can buy with FHA or renovation loan, and take advantage of that on your first flip. Live in it for a year and move on to the next project.