New hot places to buy

Rental Property Investor · Nashville, TN · Member since 2019 · 15 posts · 8 votes

Where would you say are the hot places to buy rental property right now? I’ve heard a lot about Louisville Kentucky and Indianapolis.

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

My only comment would be that a place that is hot right now and people know about it means you are too late. I would try to find the town next to the town that is hot right now, the one that hasn't peaked because that is usually next in line after the hot and now town gets full. You can still do well on a hot town, but if you find the next soon-to-be hot town by tracking the hot ones, you will make more money.

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
My only comment would be that a place that is hot right now and people know about it means you are too late. I would try to find the town next to the town that is hot right now, the one that hasn't peaked because that is usually next in line after the hot and now town gets full. You can still do well on a hot town, but if you find the next soon-to-be hot town by tracking the hot ones, you will make more money.
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James WilcoxBusiness Member
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 603 votes
6y
@Jonathan Greene I 100% agree with that statement. @Nawzad Babiry it would be wise to follow this advice. I will also throw in that you need to find a place you can build a successful team in. That will make a bigger difference than throwing a dart at any "hot" town.
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Jason PhelpsPro Member
Rental Property Investor · KY (kentucky) · Member since 2018 · 11 posts · 7 votes
6y
Louisville and Indy both have been good for some time now. The new “hot” places to buy has already past. Don’t get me wrong...There are still deals to be found, but it’s like anywhere else here now.
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Nawzad Babiry
OP
Rental Property Investor · Nashville, TN · Member since 2019 · 15 posts · 8 votes
6y
@Jason Phelps you are 100% correct because when Nashville boomed and then all the areas around it went up like crazy as well a couple of years later. Thanks for that advice.
1 Reply
Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
Originally posted by @Nawzad Babiry:
Where would you say are the hot places to buy rental property right now? I’ve heard a lot about Louisville Kentucky and Indianapolis.

Nashville is still red hot as is Memphis, Knoxville and other Tennessee cities. Best strategy is to stick with what you know best and max it out. Acres of Diamonds.

6 Reply
Jackie Comitino
Glen Cove, NY · Member since 2019 · 41 posts · 14 votes
6y
Originally posted by @Jonathan Greene:
My only comment would be that a place that is hot right now and people know about it means you are too late. I would try to find the town next to the town that is hot right now, the one that hasn't peaked because that is usually next in line after the hot and now town gets full. You can still do well on a hot town, but if you find the next soon-to-be hot town by tracking the hot ones, you will make more money.
@Jonathan Greene Any tips on how to do that? How does someone find a hot spot before it gets hot?

1 Reply
Account Closed
Real Estate Broker · Columbus, OH · Member since 2019 · 119 posts · 151 votes
6y
@Nawzad Babiry have you checked out Columbus, OH? Great steady market with steadily rising population and job growth. A handful of Fortune 500 companies headquartered here plus major centers from Chase, Google, Facebook. It’s definitely worth a look. Best of luck!
8 Reply
Zeke Liston
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
6y
I second with @Account Closed Columbus, OH is a booming market! Big-name companies are pouring hundreds of millions of dollars into the area! Investing in Columbus will bring you both great cash returns and appreciation as the area only keeps getting better! Feel free to reach out if you want to hear more.
4 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
@Jackie Comitino From another forum post I wrote about the same topic, but this is not for OOS investing unless you are traveling there: I think the easiest way to find the next up and coming market is to find the hottest market in your area first. Then, track each next neighborhood to the E, W, N and S. See if those numbers are growing year-over-year, in sales at the same pace. Drive the areas to see where there are more renovations happening. Then when you think you've identified the next hot market where renovations are going on, move to the next one. That is the one where you will find upward growth longer-term, especially if you factor in the sites everyone talked about above. But I think it's safer to see and touch the areas and know for yourself why it's coming up. If you find out a Starbucks or Whole Foods is going into an area that isn't up yet, that market is ripe.
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Jackie Comitino
Glen Cove, NY · Member since 2019 · 41 posts · 14 votes
6y
@Jonathan Greene great advice! thank you. What advice would you have for someone moving to a new city? I haven't moved yet but just starting to do whatever homework I can before hand. What resources are there for finding out what sales are - year after year - in specific neighborhoods? Is that something I can look up online? How would I identify where the hot market is in an area i'm totally unfamiliar with? Other members on BP?

1 Reply
Jack Inman
Attorney · Memphis, TN · Member since 2017 · 130 posts · 104 votes
6y
@Nawzad Babiry I second @Greg Dickerson post about sticking with TN. I don't the Nashville or Knoxville markets well, but Memphis is experiencing some major commercial developments. Memphis's downtown area is being redeveloped by several big out-of-state developers, and that shows that major players have decided that Memphis is a market worth pouring money into. When the Sears Crosstown building was redeveloped it had a massive positive impact on single-family-home property values in the area; chances are the downtown developments will do the same.
0 Reply
Matt Castle
Realtor · Gatlinburg, TN · Member since 2018 · 261 posts · 155 votes
6y
Expanding on what others have said, the smaller cities around major cities are the high growth markets right now. Around Knoxville, I see a lot of Maryville, Sevierville, Lenoir City, etc.
0 Reply
Mark Gliebe
Real Estate Agent · Member since 2019 · 167 posts · 72 votes
6y
@Nawzad Babiry I own rental property in Louisville as well as Nashville. Both places still have great opportunities, it is just about taking the time to dig them up.
2 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
@Jackie Comitino I suggest doing some research on open source sites like Zillow until you get there. You will want to make friends with a local real estate agent who also invests and they can be found at local REI meetups. Too many people rush to know an area or rely on others and miss the better deals. Some of the markets discussed above are good investment areas, but they are already pretty hot. I have always found that taking the time to find the next one is a better long-term plan and lower price point for new investors, but you have to be able to see and know the areas to do it correctly.
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1 Reply
David M Trapani
Rental Property Investor · Franklin, TN · Member since 2019 · 160 posts · 125 votes
6y
Franklin, TN. The closer to downtown the better. High growth. Huge demand. Limited supply.
0 Reply
David Flores
Rental Property Investor · Morgantown, WV · Member since 2016 · 235 posts · 135 votes
6y
@Nawzad Babiry
NC and Tennessee are good markets to look in. Clarksville TN is one that has a lot of development going on.
0 Reply
Kalanie Tran
Rental Property Investor · Member since 2019 · 62 posts · 46 votes
6y
@Jonathan Greene funny that you mentioned areas with Starbucks and Whole Foods being ripe to invest...I’ve heard a few said that as well but not sure what’s the reason of that statement ?
0 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
@Kalanie Tran It's because - how many Starbucks have you see go out of business? Their neighborhood research is exceptional and they also tend to find an almost hot spot before it's hot. Larger chains, but not fast food, can predict a swell in moving to the area better than online data without agent access. Starbucks and Whole Foods are not cheap stores so when they go into a downgraded area, it means the back data suggests it's coming and this will only enhance that.
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3 Reply
Johnny Sumner
Savannah, GA · Member since 2017 · 14 posts · 14 votes
6y
I've been trying to stick to the South East, seems like the town's with more then 150k population is a good safe bet. Buying up all the down town abandoned buildings I can. It's more of a long term play and takes a few extra years for the fruit to ripen... Imagine getting a couple properties on the downtown main Street before a huge boom.
2 Reply
Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
6y
Originally posted by @Jonathan Greene:
@Kalanie Tran It's because - how many Starbucks have you see go out of business? Their neighborhood research is exceptional and they also tend to find an almost hot spot before it's hot. Larger chains, but not fast food, can predict a swell in moving to the area better than online data without agent access. Starbucks and Whole Foods are not cheap stores so when they go into a downgraded area, it means the back data suggests it's coming and this will only enhance that.
@Jonathan Greene, I thought the same thing about Starbucks but im starting to think otherwise. They put up a Starbucks in an area of the Bronx, NY that hasn't seen better days since the 1940's. This area is crime filled with mostly fast food franchises and no name brand stores. They are rebuilding the area with new buildings but they are very low income and homeless transition buildings. Coffee now is either bought in a deli or Mcdonalds for $1-$2. No way are people spending $7 on a regular coffee when they walk into any pizzeria or chicken joint bargaining for a slice of pizza. I think Starbucks is either changing their locations or they made a mistake.

0 Reply
Sarah Williams
Investor · Member since 2018 · 13 posts · 10 votes
6y
Originally posted by @Greg Dickerson:
Originally posted by @Nawzad Babiry:
Where would you say are the hot places to buy rental property right now? I’ve heard a lot about Louisville Kentucky and Indianapolis.

Nashville is still red hot as is Memphis, Knoxville and other Tennessee cities. Best strategy is to stick with what you know best and max it out. Acres of Diamonds.

Totally agree with this. After moving to a new state this year, we are finding, that at least for now, sticking with the area we are familiar with in our old state, is the best strategy moving forward until we find a great deal where we are. Definitely working on maxing out our current properties. #1goal in 2020.
1 Reply
Deepak Malhotra
Investor · Spokane · Member since 2019 · 28 posts · 19 votes
6y
@Nawzad Babiry In terms of cash flow, I've been looking at McAllen, Corpus, Killeen, Tucson, Albuquerque, Clayton County. For appreciation, Coeur d'Alene is red hot.
0 Reply
Andrew Harrell
Real Estate Broker · Valparaiso, IN · Member since 2018 · 67 posts · 29 votes
6y
@Nawzad Babiry
Indianapolis, Valapraiso, Michigan City, all in Indiana are phenomenal for several different plays, cash flow, appreciation, demand, buy-and-hold.
0 Reply
Jennifer Sarmiento
San Diego · Member since 2019 · 27 posts · 10 votes
6y
@Nawzad Babiry Really appreciate this post, have learned a great deal from reading these responses.

@Jonathan Greene Your way of tracking a hot market is very insightful. Thank you for sharing your expertise!
1 Reply
Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
It has already been well covered but I was simply going to say why do you want a hot neighborhood. Buy low sell high not the other way around.
3 Reply

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