Do you invest in states other than your own?

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Do you invest in states other than your own?

Brandon Reiter
Investor · Member since 2012 · 19 posts · 5 votes

Just wanted to get everyone's take on investing in SFH rentals in other states. Does it diversify (within Real Estate) your portfolio? Yes. Does it create more headaches? Maybe?

Below is a list of the top ten places to buy a rental (from CNN):
1. Las Vegas
2. Detroit
3. Daytona Beach
4. Orlando
5. Warren, MI
6. Bakersfield
7. Phoenix
8. Atlanta
9. Reno
10. Tampa

Personally, I live and invest in Billings, Montana. Most people probably wouldn't think it's a great place to invest; however, Billings has one of the best economies in the Rocky Mountain region. Lots of industry: refineries, healthcare, banking, and farming.

What makes your city worth investing in? I'm curious to know what makes your city tick.

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Steve K
Investor · Orlando, FL · Member since 2012 · 431 posts · 106 votes
13y

Once CNN makes the list it's probably time to start looking elsewhere. I'm not finding much in Orlando that is worth buying anymore. Even with rentals finding even 1% of purchase price is becoming difficult. Tampa is similar.

I'd expect the local market to stagnate pretty soon.

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  • Callum K.
    Rental Property Investor · Tulsa, OK · Member since 2012 · 291 posts · 102 votes
    13y

    Hi Brandon,
    I am in the same boat as you. I live in Tulsa, OK and have properties in Oklahoma City as well as Tulsa. We have a HUGE energy (nat gas and oil) industry, coupled with a large banking, healthcare, and HUGE airline maintenance base. Its been a stable economy and we weathered the economic collapse better than most. Funny thing is that over the past 5 years, I have met more people from Vegas, Florida, and California who moved here because the economy was stable, but more importantly because of the cost of living. In fact, several of my renters are here for 5-7 year job rotations (after all, who wants to live here for the long term) which has allowed me to have more people who rent long term and not want to tie themselves into a home knowing they will not be here for an extended period.

    I guess every location has its strengths and weaknesses, but I think for people like you and me being in a second-rated city helps minimize the competition.

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  • Shanequa J.
    Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
    13y

    I invest in my city because I live here. The area is strong because of Ft. Bragg. Many bases have closed and relocated (BRAC) their personnel to the area.

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  • Steve K
    Investor · Orlando, FL · Member since 2012 · 431 posts · 106 votes
    13y

    Once CNN makes the list it's probably time to start looking elsewhere. I'm not finding much in Orlando that is worth buying anymore. Even with rentals finding even 1% of purchase price is becoming difficult. Tampa is similar.

    I'd expect the local market to stagnate pretty soon.

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  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    13y

    Yes and no. I invest in 4 states at present: AZ,FL,TX, and UT, BUT, I live in 2 of the 4 part of the year AND I've lived in all 4 prior to investing in any of the 4. Worked out well... Rich

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    13y

    I'm with Rich. I lived and invested in Texas for 33 years. I now live and invest in Arizona as well as still invest in Texas. I believe that while it's probably not necessary to live where you invest, it is very helpful to be intimately knowledgeable about the area. Also, the larger your capital the easier it is to purchase the expertise you need to successfully invest in areas outside your specific sphere. China anyone?

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
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  • Naga A.
    Investor · Atlanta, GA · Member since 2010 · 186 posts · 14 votes
    13y

    Interestingly, I have SFRs in three of the top ten cities of the list; Atlanta, Tampa and Las Vegas. It has been working out fine so far for me, but if I can go back in time, I would've invested in one city. Having houses in more than one city creates headaches more than anything else.

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Dallas and Austin for me. I might go out of state if I didn't live in such a fundamentally sound state. As it is, there is plenty of good opportunity here in Texas.

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  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    13y

    Don- are you available for the Phoenix area get together on tuesday. I've enjoyed many of your posts and love to meet. What Texas areas?Rich

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  • Tom Devost
    Real Estate Investor · Moncton, New Brunswick · Member since 2012 · 25 posts · 3 votes
    13y

    I live in Canada and invest in Florida, Phoenix and South Carolina. There are advantages to only investing in a local market, but there are also advantages to moving to markets that have better opportunities

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    13y

    Hi Rich - I am available. When and where?

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
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  • Jilliene H.
    Los Angeles, CA · Member since 2012 · 58 posts · 31 votes
    13y

    I'm currently doing first trust deed investing in California as the investors go in and clean up the housing mess, but I'm always looking at deals in other cities. I do agree with Don Konipol that if you have connections, investing outside of your local area can be successful.

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