@Hamilton Chen With the budget you have you can invest in your state and out of your state. Just depends what you feel comfortable with. As I read on this thread there isn't too many deals on MLS for SoCal but in places like the midwest and some southern states there are great cash flow opportunities. If I were you I would browse both your market and out of state markets and see what you feel like is a good start for you. There are plenty of seasoned investors on here who are very helpful for new investors.
@Hamilton Chen San Antonio, TX has newly built duplexes in the $300,000 range set in newly developed neighborhoods. Close to the military bases and expanding parts of the city. Also a quadplex for the same price range but closer to downtown. Looking at 6% cap for the new ones and 11% for the quad. Check Loopnet. Good luck.
I'm going to second Kelvin from Oklahoma City, look in the midwest. With a solid deal in KC metro area and a good management company, we have many solid investment properties on the market.
I'm going to second Kelvin from Oklahoma City, look in the midwest. With a solid deal in KC metro area and a good management company, we have many solid investment properties on the market.
SHHHHHHH!!! That's supposed to be a secret lol! Hoping to get a single-family in Johnson County in the next year. Then get one every year for 15 years on a 15-year mortgage and pull cash out tax-free on one property per year starting in 15 years. Add my cashflow from the multis I've house hacked and continue to house hack in the PNW and I should have a pretty decent retirement.
I think that is too broad... Each deal is like a snowflake. (Yes I know a little hokey) but it is true. Cash on Cash analysis is just one component or variable. However, if you make that your most important variable I can see how a low return is an issue. Take Dallas and Houston - for me two different markets and I have to approach them differently. Even LTV levels vary by location - so remember real estate deals are like snowflakes... If you want to make it too complex, might as well be a capital market guru, where snowflakes are not so distinguishable from one to another... Sometimes humor gets me us through some market corrections. Personally I am bullish on Houston and Dallas. I hope that lasts for years!
@Hamilton Chen piggybacking off of McLain's mention of OKC! This is a solid cash flow market that many investors focused on stability and long term buy and hold LOVE. It's tough to get multifamily here that performs as well as single family but you absolutely can. I focus off-market and over the last 200 deals I've seen ~5 that are multifamily. SOO it happens, but you'll just need to move quickly when it happens here! For comparison with single family you can lock down 8% cap rates that are performing as-is, pretty easily. Good luck!
I am selling a couple portfolios. One in Tennessee and one in Kentucky. They are a mix of condo, single family and multi units. If any interest please hit me up.
Hi! I'm also looking at multi-families in the SoCal area. I haven't seen much in my area around that price either. But I'm hopeful that there will be motivated sellers out there that are willing to come down on price to get their property sold.
I see a lot of replies saying "invest in your market", but how IS your market right now? Is there something driving you out of the area?
You listed a very wide rage of prices (50%). What I would do first is nail down what your real budget is, then I would work on targeting properties in a more narrow price range. What struck me most was how wide your focus point is. That to me says you kind of picked a number off the top of your head with out digging into the details of what your budget really is. Knowing this will go a long way in helping you find the best deal possible. For example a client of mine had the ability to spend 500K on a deal but was only wanting to spend 350K. After discussing their capital situation we came across a deal at 400K that was way better than any deal at 350K.
If this is your first investment I am happy to chat more deeply about how I think about deals if you are interested. Feel free to shoot me a dm if you want to chat more.
@Andrew McKinnon We bought in High Point, NC. All you need to do is do some Zillow searches for that town and you'll quickly see how low you can buy. Stuff there ranges from very bad shape to fairly decent and good value.
@Joseph Bafia Im looking at the Triad area myself and hope to jump in my first OOS investment next year. Houston is just getting expensive with the property tax