Best places to invest for a rental property

272 Replies

Tampa Bay Florida by far. Why Tom Brady Bucs, Lightning, Rays, Bill Gates, Jeff Bennett, etc lol. Fastest growing city in Florida and still very affordable.

@Isaura Orellana I agree that Detroit is looking like a great market. I’m originally from MI, but now I live in Philly. My family is still in MI and my brother lives in a Detroit suburb. I’ve been throwing around the idea of long distance investing there, but since I’m a total newbie investor I’ve been hesitant.

@Kevin Smith I second that Kevin! I wanted to ask this same question @Anthony Holloway but for some reason I just thought everyone would be biased of their own state or where they currently invest. I for one am not biased about my state. Lol Well for the rental market that is. I live in Boise, Idaho. Don’t get me wrong it’s a great city to invest in but with a slightly different strategy than what you ask Anthony. This has been hugely helpful!

@Anthony Holloway

Pretty broad goal.

What return are you expecting?

Are you looking for long distance strategies or targeting a state in particular?

Do you have boots on the ground relationships anywhere?

Some criteria that has served me well in the search:

Multiple major employers in region

Established presence of rentals (means the general population is already conditioned to the renter mindset)

Either property values too high for a single family to afford or a general population with salary too low to afford to buy.

In starting up I was targeting duplexes that were structurally sound (foundation, framing, siding, roofing, interior walls, electrical) with solid furnace and water heaters in place. This minimized initial outlay of capital. Don't mind interior updating but didn't want to gut a project either.

I also wanted to invest fairly local and do the work myself.

For me that area has been one of several small cities in the southern tier of NY. A small city with a large population of renters with 5 manufacturers in the area. A basic duplex in good shape is around 60-80k and each apartment rents around 6-800.

@Anthony Holloway

The general rule in the Midwest is to stay with properties that will rent for over $1000 a month. You will get a drastically better tenant and have lower turn costs when they leave or you have to evict. In Indy, most rentals start around $700 a month so those properties can bring you a great return, especially when you’re getting in at $40k or thereabouts BUT you have to consider that these houses get torn up by tenants. Your turn could easily be $5-6k and poof, your cash flow is gone for the year.

So to specifically answer your question, I’d focus less and specific areas and more on properties that will rent for over a $1,000/mo and will cash flow for you after expenses. There are plenty of houses that sell for $100k that rent for $1,000 a month. With a traditional mortgage at that amount, your monthly payment is probably around $450 so you’ll have plenty of room to cash flow and start building up your portfolio. Good luck buddy 💪🏻

@Anthony Holloway , the answer to your question that everybody seems to be ignoring is that it depends! What exactly are you looking to achieve? How will you manage the properties? That may affect your success more than the details of any individual deal... Also keep fixed costs vs variable costs in mind. People love to talk about nice cash flowing properties that only make $750/month in rent but some expenses are fixed. For instance, if you needed to replace a hot water heater, it would eliminate two months of rent whereas a more expensive market (where hot water heaters cost the same) would only take half a months of rent... be careful!

Originally posted by @Ed Moran :

@Rick Bolivar I’m investing in the Lakeland Area -looking for larger apt complexes (1.5-3m) if you want ti connec

I am looking to invest In Lakeland. Currently looking at SFH, would love to connect.

 

@David Haynes I’ve recently started to consider investing out of state (I live in LA and things aren’t going well finding a property). PA is at the top of my list for several reasons. I’d live to connect and discuss your thoughts on the greater Philadelphia markets.

Brother, if you are look for buy and hold let me tell you about Erie pennsylvania. You can buy a duplex with tenants or rent ready for renters between 50k-70k with rent values of 500-650 per door. We have a ton of development coming to the area and I personally believe we are going to see a boom here in the next 5 years or so in values.

There are lots of best places to do rental properties but none of them is worth a plug nickel if you do not have an above average property manager bad property will lose you your shirt team on the ground is more important then location  yes you need a good one but team first... more then willing to expand in the topic if anyone wants to chat

Investor here in Clarksville, TN! I am lucky because I am local, but I often share the great benefits available to buy-and-hold investors here. I'm not bold enough to say it is the best market available (that is a somewhat subjective determination anyways)! However, I will say there are some VERY strong reasons why out-of-state (and local) investors will find Clarksville to be an excellent location to invest!