Best places to invest for a rental property

272 Replies

Buying Rental Property is almost similar to buying a stock,  you need to know your buy zone and sell/resistance zone, and affordability. For example, the only good time to buy in San Francisco is only in 2013. This area in this location has 3 waves of pricing. 2 years up and 1-year consolidation. Currently, it's on third wave reaching major consolidation. San Jose market meanwhile is reaching second wave and may consolidate in 2022. Yes it's possible that there may be still appreciation in SF, but not that much. Same thing with the Miami market, it's no longer affordable to common people. The last good time to buy in Orlando is in 2015.

Why price is moving up everywhere is not directly due to the demand, but because gov printing money so any hard asset is being bought right now as hedge to interest rate/inflation/cheap money/etc.

So where to buy ? easy... for any cashflowing, just go to zillow home index, add US market index; and enter any US cities. Any US cities that are below the nationwide moving average most likely is in cash flowing market and will have an appreciation in the future.

After you identify the market you need to identify the house and your personal risk adjustment, this is where the actual fun begins.

@Eduardo Bernal I live in the Charlotte market and it’s getting tough to find anything that’s a deal.

Just a heads up for anyone looking in the area it can be done but it takes time to find a deal and when you do do not hesitate or it will be gone.

I’m looking out of state now for that reason.

@Anthony Holloway do you have anywhere in the country where you have boots on the ground? Could be a good friend or family member that could go out and look at properties and neighborhoods for you? Always think about what unfair advantage you have available to you and start there.

Investing in your own backyard usually removes an element of risk.  If you learn your market inside and out and know the values really well, there would be plenty to buy within driving distance for most people.

@Anthony Holloway - glad you started this point.  I'd look into Jacksonville, FL.  I've been investing here since 2006 and it is a great market for both positive cash flow and long-term home price appreciation.  Most cash flow positive markets have below-average home price appreciation so the fact that Jacksonville has appreciated at a rate of 4.3% on average since 1991 is what sets it apart from most markets.