Rental Markets Good/Bad

7 Replies

I'm looking for two current examples of good buy-and-hold rental markets, and two current examples of bad buy-and-hold rental markets. I want to compare and contrast them all with one another so I can develop a system for researching markets when the time comes to make my first purchase. Thank you to anyone who replies!

@Joshua Goston - "good" and "bad" are all in the eyes of the investor. 

In terms of toughest to cash flow assuming conventional lending (which is what I think you mean), I would say that my top 2 cities would be Cleveland and Indianapolis. My bottom two would be San Francisco and New York City. 

Hope this gives you some sort of foundation in which you can conduct your research on. 

@Joshua Goston   @Craig Curelop

Interestingly I have experience in both those markets and couldn't agree more....I live in Oakland...Right across the bridge from San Francisco....My rentals here in the San Francisco Bay Area are all under the 1% rule in a very tenant friendly state......My rentals in Cleveland are all achieving over the 3% rule...in a very landlord friendly area.

@Joshua Goston @Brian Garlington

Brian's right. Here in Cleveland cash flow is king and appreciation is the icing on the cake. That said, appreciation can definitely be realized with a smart investment, but look for a steady cash flow in an area that will hold value and long-term you should have a great rental property!

Originally posted by @Jayson Lesyk :

@Joshua Goston @Brian Garlington

Brian's right. Here in Cleveland cash flow is king and appreciation is the icing on the cake. That said, appreciation can definitely be realized with a smart investment, but look for a steady cash flow in an area that will hold value and long-term you should have a great rental property!

 If we are talking about the Cleveland market I recommend checking out The Ultimate Guide to Grading Cleveland Neighborhoods. Don't want to get caught up looking at the Cleveland properties with those "out of state eyes". I've seen many investors loose their butts on some of the rougher neighborhoods because they figured there would be no way to loose if the deal was that cheap.

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633
Originally posted by @James Wise :
Originally posted by @Jayson Lesyk:

@Joshua Goston @Brian Garlington

Brian's right. Here in Cleveland cash flow is king and appreciation is the icing on the cake. That said, appreciation can definitely be realized with a smart investment, but look for a steady cash flow in an area that will hold value and long-term you should have a great rental property!

 If we are talking about the Cleveland market I recommend checking out The Ultimate Guide to Grading Cleveland Neighborhoods. Don't want to get caught up looking at the Cleveland properties with those "out of state eyes". I've seen many investors loose their butts on some of the rougher neighborhoods because they figured there would be no way to loose if the deal was that cheap.

 James is definitely right. Cleveland, like other cities of similar size, is street by street. There are pockets of good and bad everywhere. A knowledgeable local is invaluable to any out of state investor!

Originally posted by @Joshua Goston :

I'm looking for two current examples of good buy-and-hold rental markets, and two current examples of bad buy-and-hold rental markets. I want to compare and contrast them all with one another so I can develop a system for researching markets when the time comes to make my first purchase. Thank you to anyone who replies!

 I would agree with the others in here, try looking into Cleveland! It has been booming lately! 

Tom Ott, Real Estate Agent in OH (#2016003865)
440-749-4043

Just remember you get what you pay for. Those $25,000 properties look attractive and the numbers look great but they bring headaches. Research the area and the tenant that would be renting the place, if it's too good to be true, usually is.

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