Common Investing Niches

[Peter Thirawankanok]

Hello BiggerPockets!

I am a fairly new investor from Illinois.  I want to connect with other investors from different markets that I am interested in getting started in.  My main goal is to develop a portfolio of rentals to generate passive income.  In order to raise my own capital, I want to get in to some fix and flip and wholesale deals to generate operational cash.

I am looking at the San Antonio, Texas market to start fix-and-flip and wholesale property until I can get my license, which is now required in Illinois if you want to complete more than one per year. I am hoping to connect with other investors that I can JV and partner with as I learn more on the San Antonio market.

What are some other market suggestions do you have on other good transactional markets.  I've looked in to markets in Indiana, Ohio, Missouri, and Michigan?

Thank you all for your inputs!!!

[Jay Hinrichs]

Originally posted by @Greg H.:

@Matt Lyons

You painted Texas with a very broad brush.  Texas is a massive state with scores of different markets .  While many of the large markets have been hot(until now), there are many many smaller markets with affordable rentals, stable prices and fantastic cash flow.  

Not sure what you consider the "better regulations" in Illinois vs Texas but Texas no doubt does not over regulate which I consider a huge plus.  IMO, an investor should never buy a property sight unseen....ever.  If one day and $500 in airfare skew a deal then it wasn't a deal

The big advantage Texas has over most states is the ability to evict a tenant in +-21 days where as many states can take months.  A disadvantage is high property taxes which as I understand is an issue in Illinois as well

Greg just because i am stuck in my townhouse here in Vegas with not a lot to do i thought I would respond LOL.

having done business in Both states.. I can share my thoughts.

IL  heavy duty regulation at least cook county  really tough.. Tax's also can be sky high  and depending on where your at theft etc off the charts.  Now the good is that those buildings at least the brick duplex's were built by craftsmen of the day and were built to last basically for centuries.. and Rent is high sec 8 is really high rent.  evictions tough. or tougher.

Texas,

my experience there is you better have your head on a swivel when it comes to the quality of construction.. its all over the map at least the stuff i did in Dallas mainly.. Soil conditions are real.. tax's high.. where we got stung was values rising faster than appraisers were willing to give value for and we were in FHA markets so you get stuck with that appraisal. And then like I said soil and just lack of continuity in build quality. So to me if you live there and know construction very well you can protect yourself.. We never rented so cant talk about that.

I think most folks would just do fine sticking close to home and what they know though.  Also in Texas if you live there you mitigate the high tax's with no income tax.

Lastly having moved to NV.. I am finding even though you dont really hit the rules that are on BP. 1%  2% was 10 years ago.

no income tax. and property Taxs half or more of other markets so cash flow is not as bad as some would think when you add that all in. plus late model houses which are all built with stucco siding and tile roofs and NO hail  and desert landscaping and soil that does not move.. Makes for a pretty bullet proof rental in a lot of ways..  now I am no expert at the rentals of course but thats my thought on the matter.