How would I pick a state to move to, that is good for investing?
I plan on leaving California at the end of 2018, maybe earlier. The cost of living is to high, and there are just way to many people here. What I would like to do is find a market that has potential for investing, but won't break the bank. I know that less people means less renters, but I just want to be in an area that is a little slower. So, how would I go about valuating a state, county, city, and so on?
i think it might depend on what strategy you want to work at, but its tough everywhere right now, except maybe Ohio
I'm becoming a believer in the southern/midwestern states (Alabama, Mississippi, Missouri, etc). Property values are wayyyyyy lower than CA and frankly they haven't risen all that much since 2008. They offer a lot of potential for rentals because you can find $80K ARV homes that will rent for $900 or $1000 pretty frequently. They are particularly worthwhile near colleges and military bases and the like. They are sometimes a little tougher to make the numbers work as a straight flip.
I've paid 30-35K for houses that rent for $800-$850 a month in Jackson, MS. Granted these are become few and far between but the return is still good. Some of these were worth 100K plus prior to the recession and I expect them to return to that value.
Originally posted by @Mike Schelske:
I plan on leaving California at the end of 2018, maybe earlier. The cost of living is to high, and there are just way to many people here. What I would like to do is find a market that has potential for investing, but won't break the bank. I know that less people means less renters, but I just want to be in an area that is a little slower. So, how would I go about valuating a state, county, city, and so on?
Well, I always put my vote with Cleveland, Ohio! It is mainly because I live here and the cost of living is SO affordable! Check it out :)
Thanks everyone. I have heard a lot about Ohio, but I didn't consider Alabama, Mississippi or Missouri. I like the idea of buy and hold, I think one of my hang ups is how to evaluate a property so I am not buying a lemon. And, not spending too much on a contractor to repair the property.
Originally posted by @Mike Schelske:
Thanks everyone. I have heard a lot about Ohio, but I didn't consider Alabama, Mississippi or Missouri. I like the idea of buy and hold, I think one of my hang ups is how to evaluate a property so I am not buying a lemon. And, not spending too much on a contractor to repair the property.
The good news is that labor charges are pretty cheap in Mississippi.
@Mike Schelske - We are seeing a lot of Bay area folks find Boise lately...both for moving and investing. It's a 1 hour and 15 minute non-stop flight.
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