So I am selling a poor performing property and will have $100,000 to roll into another property via 1031 exchange. I need some advice on where to invest. As for experience I have single and multifamily rentals in my market, land development, and mobile home notes. I need to purchase at $400,000 plus so am leaning toward multifamily. My priority is cashflow. I am in a market with low cap rates and cashflow so have been looking at various markets such as North Carolina, South Carolina, Cleveland, St. Louis, and a little bit in Texas. This is wide open so I would love some advice on how to narrow it down by product, market, etc. Feel free to point me in different directions too. Thanks!
@Scott Peterson Your going to get a lot of people on this thread telling you why one market is better then the other. Typically these folks are selling properties in said markets. Full disclosure I run an investment/turnkey esq brokerage in Cleveland but I am not here to sell you on Cleveland. As a matter of fact I don't sell ANYONE on Cleveland.
I think there are way to many people who have already made up their mind on a market for me to waster any time trying to convince someone why the Cleveland market is better then another. However, if you do decide that the Cleveland market is the market for you I recommend you giveThe Ultimate Guide to Grading Cleveland Neighborhoods a read, as it will give you an on the ground idea of the types of properties you will see in the different price points and neighborhoods.
Hi @Scott Peterson ,
I'm not trying to sell you anything :) Here's why I chose Raleigh, NC. However, what you choose depends on your goals. Can you share a bit more about your strategy & vision for your investment business? What market(s) are you currently invested in?
North Dallas & Raleigh tend to be a little over priced right now for multi-family units. That's not to say you can't find a good deal.
James Wise- I have actually read your guide already. I think you are great to share it with the public. It is great information that really helps sort out the information in a hurry.
@Steven Singleton - I am currently invested in Northern and Central Utah. Our market is really hot right now. I have a pretty good portfolio but am focusing on cash flow more than anything at this point. A 1% deal around here is unheard of which is why I am open to other markets.
I'm interested to see where decide to invest. Keep us posted.
@Scott Peterson I can only speak on what I know. NC is good to invest in. I'm not particularly familiar with MF. Raleigh & Durham area are starting to become a bit over priced with the tech boom in the area. Charlottle is also competitive because it's growing rapidly w/ financial industry. Do some research on the central Piedmont area like Greensboro, Winston Salem area. Good luck!
Makes sense @Scott Peterson
You might want to check out this resource starting on page 35 just as a beginning point.
Nashville seems to be a market where you might want to start if you're looking for a 1% rent to sale price ratio. Markets like Nash, Indy, and St. Louis are great places for cash flow. Appreciation could be hit or miss.
I look at deals everyday in Dallas and jump for joy if I find a 1% deal in a decent area. You can find them here but it is a matter of where you feel comfortable investing in.
Hi @Scott Peterson , if you are an accredited investor, you can buy into institutional grade $50-125M projects with as little as $100,000 and diversify. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse. This is the world of Delaware Statutory Trusts. I'm happy to answer any questions you may have. Leslie
I appreciate the posts Max Maxwell and Steven Singleton. The emerging market tool is a great starting point looking at and compare markets. I will focus on the areas listed.
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