$250K to $300k-where would you buy?

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$250K to $300k-where would you buy?

Chilly Nathan
Rental Property Investor · Sacramento, CA · Member since 2021 · 13 posts · 12 votes

Hi All,

New here to the community but I do own 3 properties in California. I'm looking to purchase an investment property for $250-300k cash. For buy and hold/cash flow. Where would you buy and why?

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
5y
From  LA I would look at Vegas  .. easy ( fairly) drive.. newer housing stock.  Desert landcape no major frost freeze issues
constant over flow from high tax states CA OR  .  And super LOW property tax's..  

300k cash for ease of investing will get you a very nice A to B location in a great area and a solid 6  to 7% COC every thing considered.

Now of course most on BP will say your crazy to pay cash.. or you should leverage and of course thats a personal decision but if you just going to buy one property .. I like that play for safety etc.. plus you have no need for a core 4.. And the quality of tenant you can self manage.
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  • Jonathan StyerBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2018 · 330 posts · 396 votes
    5y

    I would buy 2-3 single family homes in Columbus Ohio and get a great mix of appreciation and cashflow, you can beat the 1% rule here still and we are seeing 10% year over year appreciation here, better in some areas. 

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    5y

    @Chilly Nathan I would recommend looking to invest in Columbus OH. The job opportunities and population growth here make Columbus a really good candidate for out-of-state investing as well as the returns investors can get here either meeting or even surpassing the 1% rule.  

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  • Ryan Mainwaring
    Rental Property Investor · Blacklick, OH · Member since 2016 · 286 posts · 253 votes
    5y

    Third Columbus Vote

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Chilly Nathan:

    Hi All,

    New here to the community but I do own 3 properties in California. I'm looking to purchase an investment property for $250-300k cash. For buy and hold/cash flow. Where would you buy and why?

    It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    From  LA I would look at Vegas  .. easy ( fairly) drive.. newer housing stock.  Desert landcape no major frost freeze issues
    constant over flow from high tax states CA OR  .  And super LOW property tax's..  

    300k cash for ease of investing will get you a very nice A to B location in a great area and a solid 6  to 7% COC every thing considered.

    Now of course most on BP will say your crazy to pay cash.. or you should leverage and of course thats a personal decision but if you just going to buy one property .. I like that play for safety etc.. plus you have no need for a core 4.. And the quality of tenant you can self manage.
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  • Tanvir Sattar
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 380 posts · 588 votes
    5y

    @Chilly Nathan I'd also add Toledo, Ohio to @Remington Lyman's list! 

    4Reply
  • Chilly Nathan
    OP
    Rental Property Investor · Sacramento, CA · Member since 2021 · 13 posts · 12 votes
    5y

    Thanks for the responses Jay and Tanvir! Yes, I keep hearing about not paying cash but I have cash to spend and its just sitting around right now. I actually own a triplex in LA and a second home in LA but live in Sacramento. Both places too expensive to buy right now...I am a little nervous about out of state investing because I self manage my properties now and I think I do an exceptional job. I've picked the best tenants out there...Somehow, relying on a company to oversee my properties scares me but I still want to take the plunge! I hear SFR's are all the rage now, that folks are flocking to the suburbs to live and so the rentals on SFR's are appreciating...Anyway, I will check out Toledo and Vegas...Thanks for the input!

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  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    300k invested in Toledo should get you 3000/month in a B+ area, 4500/month in a B-/C+ area, or 6000/month in a B-/C- area if you source off market deals. D areas should be avoided completely.

    4Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Chilly Nathan I'm a little late to the conversation, but it's hard to go wrong in Columbus, Oh...on a grand scale, everything in this city is sitting at 50% of future value...15 years pass and our $250k duplexes are $500-600k duplexes...just for holding them...it happened in Austin...Denver...around D.C...Columbus will bypass Chicago as the most populous city in the Midwest in 30-years...there is exponential room for growth right now.

    That said, I firmly believe you can make money in markets like Orlando and Raleigh-Durham...not really a fan of Atlanta or any city inside of Alabama, but Kansas City has opportunity, along with Boise if you can still get in...it's the next Bend Oregon...I think the best idea is to have a personal connection to the market you end up in...a place you know people or would like to visit...or even live some day.

    Always happy to chat more about the local market.

    Best of luck

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Account Closed:

    300k invested in Toledo should get you 3000/month in a B+ area, 4500/month in a B-/C+ area, or 6000/month in a B-/C- area if you source off market deals. D areas should be avoided completely.

    Apples to apples  strong B A area in Summerlin / vegas for example at 300k should get you 2200 in rent or so but tax's will be about 1500 to 1700 a year.. you will have next to zero in desert landscape costs and the homes are generally 1990 or newer  stucco  tile roofs  etc and can easily be self managed..  there is a market for fully furnished in those areas and 20k or dialing in the house will get you 4k to 4.5 a month is my personal experience..  And of course being a cash buyer you wont have any problems getting a home I just did another one my daughter is a great agent there no multiple bid situation she found one put it together and we closed.

    So in Toledo the question would be how much are property tax's on a 300k house ??  I think once you factor that in and for sure lower on going maintenance Vegas is not all that much different than many mid west higher tax rate markets that are subject to snow and ice wear and tear.

    Now I like Ohio i do a ton of bizz there and do stuff in Toledo as well but just throwing this out there as a fellow west coast investor.. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Brandon Sturgill:

    @Chilly Nathan I'm a little late to the conversation, but it's hard to go wrong in Columbus, Oh...on a grand scale, everything in this city is sitting at 50% of future value...15 years pass and our $250k duplexes are $500-600k duplexes...just for holding them...it happened in Austin...Denver...around D.C...Columbus will bypass Chicago as the most populous city in the Midwest in 30-years...there is exponential room for growth right now.

    That said, I firmly believe you can make money in markets like Orlando and Raleigh-Durham...not really a fan of Atlanta or any city inside of Alabama, but Kansas City has opportunity, along with Boise if you can still get in...it's the next Bend Oregon...I think the best idea is to have a personal connection to the market you end up in...a place you know people or would like to visit...or even live some day.

    Always happy to chat more about the local market.

    Best of luck

    I think the next Bend Oregon will be Wenatchee WA  Boise is much bigger than Bend by a scale of probably 5 to 7X.. But no doubt Boise and other parts of Idaho are reaping the CA overflow and out flow from Oregon / for those that don't care to live anymore in an ultra liberal anti police society LOL..    To me Texas is going to be another LA massive traffic massive congestion .. granted real estate will benefit but lifestyle might suffer or is suffering .. all the reasons many move out of LA and SF Bay Area. 

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  • Matthew McNeil
    Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
    5y
    Originally posted by @Brandon Sturgill:

    @Chilly Nathan I'm a little late to the conversation, but it's hard to go wrong in Columbus, Oh...on a grand scale, everything in this city is sitting at 50% of future value...15 years pass and our $250k duplexes are $500-600k duplexes...just for holding them...it happened in Austin...Denver...around D.C...Columbus will bypass Chicago as the most populous city in the Midwest in 30-years...there is exponential room for growth right now.

    That said, I firmly believe you can make money in markets like Orlando and Raleigh-Durham...not really a fan of Atlanta or any city inside of Alabama, but Kansas City has opportunity, along with Boise if you can still get in...it's the next Bend Oregon...I think the best idea is to have a personal connection to the market you end up in...a place you know people or would like to visit...or even live some day.

    Always happy to chat more about the local market.

    Best of luck

    Boise is indeed tough to get into now. Glad I started investing there 12 years ago. However, Boise is not the next Bend. My parents live in Bend. No comparison. 
    2Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Account Closed:

    300k invested in Toledo should get you 3000/month in a B+ area, 4500/month in a B-/C+ area, or 6000/month in a B-/C- area if you source off market deals. D areas should be avoided completely.

    Apples to apples  strong B A area in Summerlin / vegas for example at 300k should get you 2200 in rent or so but tax's will be about 1500 to 1700 a year.. you will have next to zero in desert landscape costs and the homes are generally 1990 or newer  stucco  tile roofs  etc and can easily be self managed..  there is a market for fully furnished in those areas and 20k or dialing in the house will get you 4k to 4.5 a month is my personal experience..  And of course being a cash buyer you wont have any problems getting a home I just did another one my daughter is a great agent there no multiple bid situation she found one put it together and we closed.

    So in Toledo the question would be how much are property tax's on a 300k house ??  I think once you factor that in and for sure lower on going maintenance Vegas is not all that much different than many mid west higher tax rate markets that are subject to snow and ice wear and tear.

    Now I like Ohio i do a ton of bizz there and do stuff in Toledo as well but just throwing this out there as a fellow west coast investor.. 

     Too hot, with global warming it won’t be habitable for human life much longer, all will exodus to Toledo

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Account Closed:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Account Closed:

    300k invested in Toledo should get you 3000/month in a B+ area, 4500/month in a B-/C+ area, or 6000/month in a B-/C- area if you source off market deals. D areas should be avoided completely.

    Apples to apples  strong B A area in Summerlin / vegas for example at 300k should get you 2200 in rent or so but tax's will be about 1500 to 1700 a year.. you will have next to zero in desert landscape costs and the homes are generally 1990 or newer  stucco  tile roofs  etc and can easily be self managed..  there is a market for fully furnished in those areas and 20k or dialing in the house will get you 4k to 4.5 a month is my personal experience..  And of course being a cash buyer you wont have any problems getting a home I just did another one my daughter is a great agent there no multiple bid situation she found one put it together and we closed.

    So in Toledo the question would be how much are property tax's on a 300k house ??  I think once you factor that in and for sure lower on going maintenance Vegas is not all that much different than many mid west higher tax rate markets that are subject to snow and ice wear and tear.

    Now I like Ohio i do a ton of bizz there and do stuff in Toledo as well but just throwing this out there as a fellow west coast investor.. 

     Too hot, with global warming it won’t be habitable for human life much longer, all will exodus to Toledo

    LOL  touche'   

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Account Closed:

    300k invested in Toledo should get you 3000/month in a B+ area, 4500/month in a B-/C+ area, or 6000/month in a B-/C- area if you source off market deals. D areas should be avoided completely.

    Apples to apples  strong B A area in Summerlin / vegas for example at 300k should get you 2200 in rent or so but tax's will be about 1500 to 1700 a year.. you will have next to zero in desert landscape costs and the homes are generally 1990 or newer  stucco  tile roofs  etc and can easily be self managed..  there is a market for fully furnished in those areas and 20k or dialing in the house will get you 4k to 4.5 a month is my personal experience..  And of course being a cash buyer you wont have any problems getting a home I just did another one my daughter is a great agent there no multiple bid situation she found one put it together and we closed.

    So in Toledo the question would be how much are property tax's on a 300k house ??  I think once you factor that in and for sure lower on going maintenance Vegas is not all that much different than many mid west higher tax rate markets that are subject to snow and ice wear and tear.

    Now I like Ohio i do a ton of bizz there and do stuff in Toledo as well but just throwing this out there as a fellow west coast investor.. 

    Nevada is my top state of all for my top 5 OOS factors.   Thank you for the great information!

    0Reply
  • Eric GiovannucciBusiness Member
    Investor · Boise, ID · Member since 2014 · 176 posts · 108 votes
    5y

    If Boise is on your radar, shift about 20 miles left into Canyon county. The overpour from the Boise Market is developing and buying in Canyon County. Nampa/Caldwell is seeing 3% appreciation month over month. 

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  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Account Closed I'm interested in your comment 
    300k invested in Toledo should get you 3000/month in a B+
    area, 4500/month in a B-/C+ area, or 6000/month in a B-/C- area if you
    source off market deals.     How many doors are suggesting it would take to see this cash flow? I have a similar situation and am looking to make multiple purchases w/ leverage.

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  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y
    Originally posted by @Bonnie Low:

    @Account Closed I'm interested in your comment 
    300k invested in Toledo should get you 3000/month in a B+
    area, 4500/month in a B-/C+ area, or 6000/month in a B-/C- area if you
    source off market deals.     How many doors are suggesting it would take to see this cash flow? I have a similar situation and am looking to make multiple purchases w/ leverage.


    Duplexes around 100-120k  

    Fourplexes around 150-175k

    Singles can be anywhere from 30k with a large rehab to 140k turnkey B+

    1Reply
  • Forrest Faulconer
    Real Estate Agent · Oklahoma City, OK · Member since 2020 · 471 posts · 462 votes
    5y
    Originally posted by @Chilly Nathan:

    Hi All,

    New here to the community but I do own 3 properties in California. I'm looking to purchase an investment property for $250-300k cash. For buy and hold/cash flow. Where would you buy and why?

    Hmm, great question, since you brought up cash flow, it seems like putting that money towards a down payment on a multi-family could render the best cash flow. But it just depends on the amount of debt you want to take on (if any) and management, etc.

    Forrest Faulconer

    0Reply
  • Michael Robbins
    Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
    5y

    @Chilly Nathan well to offer one example of Las Vegas/Henderson NV. I was recently assisting an investor in purchasing a Las Vegas townhouse. The townhouse is an A property, gated community, two bed, about 1200 sf, one car attached garage, with only about $3,000 in upgrades needed. The listing price is in the $270,000s, HOA $150, and will rent for $1,600-1,650.

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
    5y

    Look into Boise and Vegas since they are closer than the Midwest. Cities in the Midwest that are hot Columbus and surrounding areas, Kansas City, Memphis and Detroit. You can also look into states closer to the South coast so Florida, Alabama, and Georgia. Honestly the biggest part is establishing a team after you've done research on a few markets. From there you can build the team and start buying. 300K can buy you a few properties in C-B areas that are cash flowing, good areas, and less head aches. 

    1Reply
  • Aaron Williams
    Real Estate Agent · Boise, ID · Member since 2017 · 31 posts · 18 votes
    5y

    @Chilly Nathan

    I’m biased being a Boise native, owning and investing here but it’s not slowing down any time soon here. My short term rentals amaze me.

    Let me know if you need to build your core 4 in Boise. I’m happy to put my 21 years in the biz to work for you.

    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Chilly Nathan:

    Hi All,

    New here to the community but I do own 3 properties in California. I'm looking to purchase an investment property for $250-300k cash. For buy and hold/cash flow. Where would you buy and why?

     Hi Chilly, I'd invest in Ohio, specifically the Columbus market. There is so much development happening in the city right now, which has prices on the rise. I don't see this development slowing down anytime soon either. 

    1Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y

    If you're looking for a sign, here it is, Columbus Oh is a great buy and hold market.

    3Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Steven Foster Wilson:

    If you're looking for a sign, here it is, Columbus Oh is a great buy and hold market.

     Wonderful chart. 

    1Reply
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