Advice on where to invest for new investors

New to Real Estate · Member since 2021 · 16 posts · 9 votes

Hi BP friends,

My husband and I are saving up for our first property through travel work. We are willing to move anywhere in the country that has a good real estate market, and would like to live in places for a few months before we invest. If you guys could start over, where are the best places in the country to invest in real estate?

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Mike Kehoe

Wholesaler · Chicago, IL · Member since 2018 · 84 posts · 83 votes

@Alicia Tingey Geddes I'd strongly consider living in Raleigh-Durham, NC, and investing in the great tertiary markets in and around the Research Triangle. The Triangle offers a great quality of life, no matter your hobbies or interests. Personally, I'd choose the Old West Neighborhood of Durham to live in because of its walkability to restaurants and shopping. Durham has great culture and vibrancy. Either way, depending on where you are in the Triangle, you're only about 2.5 hours to the beach and 3-4 hours to the mountains.

Regarding investing, you can achieve the 1% rule or better and BRRRR with a low barrier entry in cities like Burlington, Mebane, and Greensboro. The Research Triangle and surrounding areas hit most if not all of the markers you look for when underwriting real estate markets.... population growth, income growth, house value growth, crime trends, job growth, business-friendly state, landlord-friendly (some areas are not as friendly as others).

PM me if you have any questions!

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Taylor DaschBusiness Member
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
4y
There are so many places to invest. Google best cities for cash flow and you will likely find some good ones. For me, I am comfortable with my market, I get really good cash flow and some appreciation as well. Whichever market you end up picking be sure to really research it! In your case, I would pick 3 and do extensive research on all of them, Think of problems that may arise in the future and how you would overcome them or if they will even be able to be taken care of. Then pick your favorite.
[email protected]254-718-4249
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4 Reply
Mike Kehoe
Wholesaler · Chicago, IL · Member since 2018 · 84 posts · 83 votes
4y
@Alicia Tingey Geddes I'd strongly consider living in Raleigh-Durham, NC, and investing in the great tertiary markets in and around the Research Triangle. The Triangle offers a great quality of life, no matter your hobbies or interests. Personally, I'd choose the Old West Neighborhood of Durham to live in because of its walkability to restaurants and shopping. Durham has great culture and vibrancy. Either way, depending on where you are in the Triangle, you're only about 2.5 hours to the beach and 3-4 hours to the mountains.
Regarding investing, you can achieve the 1% rule or better and BRRRR with a low barrier entry in cities like Burlington, Mebane, and Greensboro. The Research Triangle and surrounding areas hit most if not all of the markers you look for when underwriting real estate markets.... population growth, income growth, house value growth, crime trends, job growth, business-friendly state, landlord-friendly (some areas are not as friendly as others).
PM me if you have any questions!
8 Reply
Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
4y
@Alicia Tingey Geddes since you and your husband have the luxury of remote work, I would implement a plan/strategy of purchasing a primary residence using an owner-occupied loan to take advantage of a low down payment and better rates/terms, live in the property for a year, then turn the unit around as rental. The common hockey analogy used amongst investors is, "skate to where the puck is going to be, not to where it has been." The analogy simply references the fact that you need to perform your due diligence and identify markets that are, "up and coming." Research key metrics such as population growth, company relocations, local policy, etc. Hope this helps!
4 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
Quote from @Taylor Dasch:

There are so many places to invest. Google best cities for cash flow and you will likely find some good ones. For me, I am comfortable with my market, I get really good cash flow and some appreciation as well. Whichever market you end up picking be sure to really research it! In your case, I would pick 3 and do extensive research on all of them, Think of problems that may arise in the future and how you would overcome them or if they will even be able to be taken care of. Then pick your favorite.
I have looked up a few articles on google about cashflow. Thanks for the insight about future problems, that will probably help us decide what we are up for.
0 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
Quote from @Mike Kehoe:

@Alicia Tingey Geddes I'd strongly consider living in Raleigh-Durham, NC, and investing in the great tertiary markets in and around the Research Triangle. The Triangle offers a great quality of life, no matter your hobbies or interests. Personally, I'd choose the Old West Neighborhood of Durham to live in because of its walkability to restaurants and shopping. Durham has great culture and vibrancy. Either way, depending on where you are in the Triangle, you're only about 2.5 hours to the beach and 3-4 hours to the mountains.
Regarding investing, you can achieve the 1% rule or better and BRRRR with a low barrier entry in cities like Burlington, Mebane, and Greensboro. The Research Triangle and surrounding areas hit most if not all of the markers you look for when underwriting real estate markets.... population growth, income growth, house value growth, crime trends, job growth, business-friendly state, landlord-friendly (some areas are not as friendly as others).
PM me if you have any questions!

Thanks Mike! We have actually been thinking about some places in the south the last few days. Like Alabama and Tennessee, but North Carolina sounds pretty great. We'll have to look into it more. Our plan right now is to find a 4-plex and house hack it, then work up to apartment complexes. We wont be buying properties until next year so right now we are just focusing on research while we save up.
1 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
Quote from @Michael Dumler:

@Alicia Tingey Geddes since you and your husband have the luxury of remote work, I would implement a plan/strategy of purchasing a primary residence using an owner-occupied loan to take advantage of a low down payment and better rates/terms, live in the property for a year, then turn the unit around as rental. The common hockey analogy used amongst investors is, "skate to where the puck is going to be, not to where it has been." The analogy simply references the fact that you need to perform your due diligence and identify markets that are, "up and coming." Research key metrics such as population growth, company relocations, local policy, etc. Hope this helps!

Thank you Michael! That is a great idea, we would love to research metrics and find a property in up and coming area. We want to house hack a 4 plex as our first property. If we can't find a 4 plex than we'll do a triplex or duplex. We aren't planning on buying until next year so this year we are wanting to work on our due diligence, so we can find a place with good metrics.
0 Reply
Andre Crabb
Investor · Tampa, FL · Member since 2017 · 205 posts · 92 votes
4y
Quote from @Alicia Tingey Geddes:

Hi BP friends,

My husband and I are saving up for our first property through travel work. We are willing to move anywhere in the country that has a good real estate market, and would like to live in places for a few months before we invest. If you guys could start over, where are the best places in the country to invest in real estate?

Great question Alicia...that's exactly where I was about 4 years ago! I settled in Tampa, FL :)
shoot me a DM and I can send you more info...I have spreadsheets from back then and more info comparing cities across the US
Happy to help!
1 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
4y
Focusing locally is usually the place to start. When you add long distances, you add an element of risk.

Quote from @Alicia Tingey Geddes:

Hi BP friends,

My husband and I are saving up for our first property through travel work. We are willing to move anywhere in the country that has a good real estate market, and would like to live in places for a few months before we invest. If you guys could start over, where are the best places in the country to invest in real estate?

2 Reply
Jonathan StonePro Member
Rental Property Investor · Camas, WA · Member since 2020 · 285 posts · 202 votes
4y
@Alicia Tingey Geddes
Do you have an established network in any market you are considering? That could make a big difference. Being able to ask for references and connect with local contractors or agents and have existing connections in the community can help quite a bit.
2 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
Quote from @Jonathan Stone:

@Alicia Tingey Geddes
Do you have an established network in any market you are considering? That could make a big difference. Being able to ask for references and connect with local contractors or agents and have existing connections in the community can help quite a bit.

Hi Jonathan, I worked in banking for 4 years in Northern Utah, so if I had any connections in the Real Estate Market right now its there. The Utah market is quite expensive right now that's why we were considering other places in the US.
0 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
Quote from @Ian Walsh:

Focusing locally is usually the place to start. When you add long distances, you add an element of risk.

Quote from @Alicia Tingey Geddes:

Hi BP friends,

My husband and I are saving up for our first property through travel work. We are willing to move anywhere in the country that has a good real estate market, and would like to live in places for a few months before we invest. If you guys could start over, where are the best places in the country to invest in real estate?

Thanks Ian, that is a good point. We are moving every three months right now, we are from Northern Utah. Houses are expensive there so we were considering moving to a location with a better market.
0 Reply
Eric Bilderback
Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
4y
Pick where you want to live and what kind of investing do you want to do. In my area real estate is not cheap and buying a 700k duplex produces a few hundred bucks in cashflow year one. However rents have doubled in the past 5 years. So the people who were pinching to get into a deal or two 5 years ago have now hit the mother load. So if I could do it all over I would have been more aggressive about buying property right here at home. But hindsight is 20/20.
If my wife would have let me I would have packed up the kids etc moved to Hawaii and bought a few plexes and while cash-flowing those suckers would have been tough, they would have been printing money at this point I bet. Where if I would have moved to Buffalo and bought a bunch of cash-flowing rentals I would be fighting with those things everyday still. And it sucks in Buffalo, so I have been told. LOL
3 Reply
Tim Deimer
Rental Property Investor · Member since 2021 · 29 posts · 34 votes
4y
@Alicia Tingey Geddes
Stay away from Wisconsin, this place is uninhabitable! It's still winter here!
Seriously, if we were starting over, I'd look at places we'd like to live and find a 2-4 unit to owner-occupy. Easy to finance with low down and, in our experience, a forgiving introduction to owning real estate. Even if you eventually decided to move out of town or back home again, you'd be familiar enough with the area to find a manager if you wanted to keep that property or save the cap gains tax on the portion that you lived in if you decided to sell it. Good luck!
0 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
Quote from @Tim Deimer:

@Alicia Tingey Geddes
Stay away from Wisconsin, this place is uninhabitable! It's still winter here!
Seriously, if we were starting over, I'd look at places we'd like to live and find a 2-4 unit to owner-occupy. Easy to finance with low down and, in our experience, a forgiving introduction to owning real estate. Even if you eventually decided to move out of town or back home again, you'd be familiar enough with the area to find a manager if you wanted to keep that property or save the cap gains tax on the portion that you lived in if you decided to sell it. Good luck!
Hi Tim, It's funny you should mention Wisconsin, we have been working in Minnesota the past several months because the pay was good and its been brutally cold! We decided we don't want to invest here, haha. We have been talking about starting the way you suggested. Buying a unit between 2-4 units and house hacking it for a year with an FHA loan. Thanks for you insight!
0 Reply
Jeff SchemmelBusiness Member
Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
4y
Quote from @Alicia Tingey Geddes:

lol, well i was going to give my hot take on MSP market, but I will stay my opinion. However, If you're around MN still and want to get a coffee and chat about the local market here give me a shout.

0 Reply
Joe HammelBusiness Member
Real Estate Agent · Metro Detroit, MI · Member since 2018 · 614 posts · 666 votes
4y
@Alicia Tingey Geddes
My rental portfolio is in metro detroit. When the rest of the nation is struggling to not be cash flow negative we have the best price/roi/location balance
$80-$130k buy
$1200-$1500 rent
Double digit ROI
$200-$350 monthly cash flow
C and B- locations
Tough to beat. The reputation of “war zones” and people getting burnt buying the $20k houses is what gives the area a bad name.
Just do some research (or we could for you).
[email protected]248-422-1685
FIRE Realty Team - Keller Williams5379 Reviews
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3 Reply
Jonathan StonePro Member
Rental Property Investor · Camas, WA · Member since 2020 · 285 posts · 202 votes
4y
@Alicia Tingey Geddes
I wouldn't limit your connections to only people who are in real estate. If you have connections in an area, even friends, college buddies, family, they can help as you relocate in identifying neighborhoods you would/wouldn't want to live or invest in. Other small things like if the area doesn't have shopping close or crime is getting better/worse so you can move into the direction of improvement.
0 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
@Jonathan Stone
Thanks, that is good advice. I'll try networking more with people that I already know.
0 Reply
Ricardo Hidalgo
Real Estate Agent · Member since 2019 · 569 posts · 257 votes
4y
I really like the Fort Walton Beach, Navarre and Niceville area for long term rentals since we have a lot of military bases nearby and have a huge need for rentals. If you are wanting to explore a market that is going though massive amounts of gentrification, I would explore Freeport, Defuniak Springs and Panama City. There are tons of new homes under 300k that rent close to the 1% rule with great appreciation. As an investor in the area, the next 5-10 years will provide massive opportunities as millions of dollars are being poured into bay county to rebuild their infrastructure.
3 Reply
Alicia Tingey Geddes
OP
New to Real Estate · Member since 2021 · 16 posts · 9 votes
4y
@Tim Deimer

I appreciate your offer on giving us insight into the Minnesota market. If we were looking in the area, that would be amazing. But my husband and I aren't going to be in Minnesota very much longer. Thank you for offering!

@Eric Bilderback You advice has helped us a lot. Right now, we have the basics decided of what we want to do and how we want to do it. We're just trying to figure out the locations now. From Utah and the housing market is crazy there right now. We are saving up for the next year and learnig everything we can so we'll see where we end up.

@Joe Hammel That's good to know about Detroit, my husbands brother lives there. I'll have to see what neighborhood they live in. They seem to really like Detroit.

@Ricardo Hidalgo Florida is definitely at the top of the list of where we are considering. I'll have to start researching that area! Our idea right now is to house hack a few properties in a good area outside a city, hold on those properties then work up to apartment complexes.
1 Reply
Tim Deimer
Rental Property Investor · Member since 2021 · 29 posts · 34 votes
4y
Quote from @Alicia Tingey Geddes:

@Tim Deimer

I appreciate your offer on giving us insight into the Minnesota market. If we were looking in the area, that would be amazing. But my husband and I aren't going to be in Minnesota very much longer. Thank you for offering!
Not me. I don't know how I got mixed up with MN. Fortunately, I'm not one of the perpetually offended! I'm a 4 hour drive from MN and don't have any interest or know anything about any market there.
0 Reply
Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
4y
The best place from a practicality and learning standpoint is always right in your backyard.
In a general sense, the midwest and the south will give you the highest cashflow, but lowest appreciation and higher holding, vacancy and maintenance and turnover costs. The coasts will give you better appreciation, but less cash flow- at least at the start, but the cash flow will come if you invest in a growing area. Those areas will increase your net worth at a much more rapid rate, but it's a slower burn. Gotta pick your poison!
2 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4y
@Alicia Tingey Geddes
You don't need to invest where you live.
Metro Detroit offers many options for meeting the 1% Rule and relatively high ROI.

Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...

The two most common mistakes we see investors make, over & over again, are:

1) Not understanding and running their own ROI numbers

2) Not having a clear understanding of the type of asset a property is

In our opinion, your best team member should be your Property Management Company (PMC). They have to deal with any property you buy every month until you sell or terminate them. Everyone else on your team will be transaction-based and not really involved after a purchase.

We're in the Metro Detroit area, so you may want to follow our blog here on BP, but at least read the following posts:

How to “Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

[email protected]248-209-6824
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1 Reply
Logan McKay Zylstra
Realtor · Provo, UT · Member since 2020 · 374 posts · 270 votes
4y
I think taking action is the most important factor in your situation. Also, it depends on what you are looking for cash flow, appreciation, etc.
With that being said, I love the Utah market and think it is easily one of the best markets in the country.
0 Reply
Jocelyn StoddardBusiness Member
Realtor · UT · Member since 2022 · 63 posts · 42 votes
4y
@Alicia Tingey Geddes I too started investing in Utah. I have moved most of my portfolio to Montana and have really expanded moving my rentals there. I went from 4 units to 49 units in 2 years by moving to another market.
I still live in Utah and I am actually a real estate agent in Utah. I just have been able to find better deals in Montana for investment purposes. I believe there are still good deals in Utah but it's never a bad idea to shop around.
Good Luck!
-Jocelyn :)
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