@Kenneth Williams I looking to potentially invest in the Memphis area late 2021. Do you mind share some info about the local market aswell?
@David Haynes I live in bucks county 45 min from philly. I have an off market deal I’m working on. It would be my first deal. And I would like to wholesale it. I would appreciate your thoughts if you have time. Thanks
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.
@David Haynes we should connect. I’m interested and actively pursuing in specific zip codes of Philly suburbs
I am in Los Angeles too. I just bought a few SFR in Central Az (Phx Metro area). I wasn't looking for duplexes but you could buy 2 SFR for around 400Gs and the rents are around 1500-1550 a piece. I know of a good real estate agent/Property mgr if you want to PM me. What I like about Az is it is only a 6 hr drive from L.A. and has low insurance (good weather) and lower taxes. Also Capital gains taxes are better. I have invested in Fl, NC, Va, Ok and Tx. They all had higher insur (hurricanes/bad weather) and taxes. I have learned the hard way to really investigate the insur/taxes and to seriously take them into account as they really cut into your bottom line.
PS: Also I take into account keeping away from rent control areas.
Hey Marlen, I’m currently in the Houston area. Could you tell me some specific spots in the Houston area that would be good places to look for long term investments? I live in Friendswood (77546) which is 30 minutes from Houston and also Galveston
@Scott Diller nice ! I'm also an airline worker based out of NYC. Looking into getting my first investment property as well. I keep hearing Memphis and the South as good places to start.
As a Realtor in this industry. Things are very good in Florida and improving slowly and steadily for the past 8 months.
Galveston Texas is amazing. I am a BOI. I have been on Airbnb for over 10 plus years.
Your just in Houston. Now is the time to look as well since prices spike In March. I would love to talk to you. I know of some awesome investor incentives as well.
@Cesar Gomez awesome! I'm based in Houston and also need a place to live so I'm going to buy my first House Hack here within the next few weeks. I've been a gypsy pilot the last year which was super fun but I want a place to unwind and focus on my RE investing moving forward. Im going to rent rooms to 4-5 coworkers so my house will cash flow very well even with me living there. I have a friend who wants to partner with me on a pure rental in the near future. She will provide the down payment and I will get the loan and do most of the legwork. For that property we are going to look all over the US for the best cashflow we can get since we both have the ability to fly for free.
@Christina Johnson I am also in Houston. Would love to hear about your investor incentives! Appreciate the tip on prices spiking in March. I am planning to buy a house hack within the next few weeks.
@Scott Diller That is awesome and very smart the house hack for your fellow crew mates! A great business way to start. I was in Houston visiting a good friend of mine from childhood who just moved there. She was trying to convince me to move to Houston. I may go back a few times. But your plan sounds great! You have someone who is willing to provide the down payment for your future investment! I wish you the best of luck man ! Keep us posted.
@Cesar Gomez Thanks! Keep me posted on your plans as well. If you move here or come visit send me a message and we can meet up and talk real estate!
@Scott Diller Moat definitely! Thanks man! Will do. ;-)
@Anthony Holloway that's exciting! There are a number of great markets that have lower price points while still demanding high rent prices relative to the initial cash investment. I am biased and have a lot of experience in the Kansas City metro (Jackson, Clay, Cass, and Platte Counties). The sweet spot is right around a .95-1% rent to value ratio.
Indianapolis, Memphis, Cleveland, Jacksonville, and pockets in Atlanta also provide great opportunities.