Best places to invest for a rental property

272 Replies

@Anthony Holloway

Very hard to go wrong with San Antonio for rentals. Lots of big tech corps headed to central Texas resulting in an even higher demand for homes with scarce inventory. Would strongly recommend San Antonio as you get the same dominant appreciation at Austin at far less competitive prices. I have personally noted numerous of my investors from out of state or even in some of the other major cities in Texas making a rush to San Antonio in just the first two weeks of 2021.

Detroit, Detroit, Detroit. #1 city in the country for positive cash flow, rent to value ratio and where you can stretch your investor dollar the furthest. In other words, you get the biggest bang for your buck in Detroit. 

Hey Anthony - thanks for starting this thread. I live in LA as well, and looking to start my portfolio in 2021. Let me know if you'd like to connect more and share best practices so far. Cheers!

Exactly my point.

The suburbs. How to define them. Every city is different. There is no one answer.  Good luck.

my .02

Find a place close to your home a house? Know the place and make sure when you replace the air conditioner your gettin a good deal


Brian 

@Robert Neal   with runup in Austin prices, do you think there are people driving daily from SA to Austin for work, or do you hear or feel there are today or will be a significant amount of commuters?  Any express bus service now?

Originally posted by @David Haynes :

@Anthony Holloway Just like @Kenneth Williams , I'm biased as well haha. The Philadelphia suburbs are a great place to pick up a multifamily for under $400K with strong cap rates. In fact, I just sold a well-maintained off-market 9-unit in the nice part of Norristown, PA for $450K. A place like that would bring $8,300/month in gross rent easily. Recently, duplexes in B level neighborhoods have sold just above $200K with $3,000 in gross rent. It's worth checking out. 

PA is a tenant-friendly state, yet investing outside the city isn't too risky. Evictions have happened recently in Delaware County and Montgomery County PA within 60 days.

 How much can an investor expect to NET from the $200K B level duplexes that gross $3K in rent? Assuming no mortgage or financing needed. 

Originally posted by @Samara Huntley :

Hi Anthony-

I suggest any of the Charlotte, NC suburbs. Gastonia/Concord/Kannapolis etc.

Gastonia specifically where the prices haven’t caught up with the growth. Gastonia has great cash flow (most properties meet the 1% rule), strong rental market, landlord friendly and huge population growth due to the overflow from Charlotte.

As an agent and investor I love the Gastonia market and what it has to offer. Call me biased but the numbers don’t lie!

Hi Samara, what is the price range like for properties that cash flow well in Gastonia/Concord/Kannapolis ?   I am a buy-hold-rent investor, am considering expanding my porfolio. 

 Many thanks. 

Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

@Anthony Holloway  

I think we're all biased towards the markets we live in, work in or invest in. That said, greater Cincinnati is also a solid market to consider. Despite appreciation (like we've seen everywhere lately) there are still affordable deals to be had and Cincinnati has a solid renter base. Northern Kentucky (which is actually where Cincinnati international airport is located) is currently seeing a lot of growth due to Amazon's 99-year lease and build up of a distribution center on airport property. Things are definitely on fire here.

Hope you do well wherever you choose to invest.

Hi @Mary Joe ! Im seeing the best BRRRR's in Gastonia stay in the 75-110k range. Usually needing around 10k in slight updating, new flooring/paint. Then renting out for (800-1200). Of course, this totally depends on the level of rehab, location, size etc. but on average they hit the 1% rule.

The other two markets Kannapolis/Concord are usually a little higher with around 130-170k purchase price.

@Mary Joe Thanks for the question. 

I ran the numbers for a duplex I sold in Drexel Hill, PA. I consider it a B class neighborhood because of its less than pleasing school district, Upper Darby. Assuming you buy it for $200K and put $20K of work into it, the 2 two-bed units would rent around $1,500 each. I always factor in management at 10%, vacancy at 4%, and maintenance at 7%. Taxes were around $7,000 annually and I used the normal rates for insurance. You would net $1,690 monthly without a mortgage payment. With a mortgage payment, you netting $550 monthly with the refinance ARV set at $270K.

Originally posted by @Bruce Lynn :

@Robert Neal  with runup in Austin prices, do you think there are people driving daily from SA to Austin for work, or do you hear or feel there are today or will be a significant amount of commuters?  Any express bus service now?

 Bruce,

I think right now you have so many folks working remotely that the commuting issue is in fact not an issue and to be honest I really think this new trend of remote work will be around for the long haul. With that being said there are still a plethora of people who make that commute. If you live in East/Northeast San Antonio and are able to work South of Downtown Austin you really aren't looking at more than an hour long commute or so. 

@Anthony Holloway

Hey Anthony,

Indianapolis is another great market if you're looking to enter deals at lower prices but still keep your ROI high. For example, we may sell an off market deal to our investors for 80k and that property will rent for $1000/mo. Pretty solid back for your buck. If you do look in Indy, I'd suggest buying properties that rent for a minimum of $1000 a month as you'll get a higher quality of tenant that way.

All the best 👍🏻

Atlanta GA. You can get duplex for 200-300k that rent around 2000. Hard to come by nowadays but that’s possible here

If you're looking for cash-flowing markets with some appreciation, there're 20 cities in the USA that has > 1.0 rent/value ratio by default.

I put my seeds in multiple cities for cash flow and one in highly appreciativemarket.

Hey Anthony, For the Tampa Bay FL area I would suggest the New Port Richey / Port Richey area. Many undervalued possibilities available depending on what your objective would be.