Laguna Niguel, CA · Member since 2016 · 4 posts · 0 votes
Hello fellow BP members!
I am a CA buy&hold investor trying to narrow my choices for out of state market choices, and was wondering which markets you guys would consider for buy&hold multi family and SFR?
I narrowed it down to a few southern states....
Alabama
Texas
Georgia
Florida
Tennessee
...If you have any suggestions I would love to hear them and would appreciate it very much.
Thanks for the input. It's nice to see others already doing it. Our plan is to live in our Rv while we demo and rehab. I want to see what the neighborhoods are like before we jump into an investment, and build and vet a team while I'm on ground. Do you fly in and check in with your property managers and property on occasion? If so how often?
Josh
@Michael Macklin summed it up pretty good for SF. Would stay away from MF in Memphis unless you want to buy in "A" class areas where the homes are 1950 and before. I own some of these "A" class units in Memphis that were built between 1920 to 1950 and they do great, but they are expensive to buy. We do far more deals in Little Rock, AR with our MF. In Memphis, the property taxes on MF are rated at a commercial rate, whereas in LR the taxes are based on the same rate as SF. Also, the MF properties at lower price point are located in much better areas then in Memphis. Really, any MF in Memphis under 150k (fully rehabbed) are likely in war zones. I have seen to many MF investors in Memphis sells quickly when they figure out what they bought. SF homes work all day and I own 21 of those. BTW, Little Rock, AR eviction laws are ridiculously skewed toward the owner. Basically can get the tenant out in 14 days. That is game changer for your investments in the case a tenant goes bad.
Oh man, that is some great advice Alex. Thanks a lot. It helps me narrow down my market a lot more. Would you happen to know reliable contractors, property managers, or REI friendly agents? Want to start networking before I move out there. I really appreciate it.
You've gotten good advice so far and I'm glad you plan to be there in person to get things started.
Traditionally high rental yield markets for your focus states are:
Birmingham, Memphis, Jacksonville, Orlando, Tampa. It is obviously possible to do well in other markets but those would appear the strongest.
Hotter markets that might have more flipping opportunities and better appreciation ROI if you find the right deals would be South Florida, Southwest FL, Nashville, Atlanta, Houston, Dallas.
@Joshua Smith Yes in fact this years trip is second week in feb. KC, MO first stop then on to Memphis. Managers, contractors, attorneys, real estate agents. bird dogs and anyone else I can listen to. I hope to have time to find a couple more SFR's while i'm back there. I hope to attend MIG meeting while in town if the pro's will have me.
@Joshua Smith I'm in the Jacksonville, FL market and our buy & hold for SF is great. MF is decent here as well but you can probably find better deals in other markets for MF unless you're going into rougher areas.
I hear Atlanta, GA is great for MF right now and I'd look into it more if you're looking at the MF market.
Other areas in Florida that are good for buy & hold are Tampa and Orlando.
South Florida is good for flips but it is extremely competitive and as an out of state investor it will probably be very difficult to find a good deal. Orlando and Tampa are also becoming more and more difficult but deals can still be found.
I don't know much about other markets so I can't speak for any of the other areas you mentioned.
In summary I recommend the following in this order:
1. Jacksonville, FL - SFR , Atlanta, GA - MF
2. Orlando, FL - SFR
3. Tampa, FL - SFR
4. South Florida - SFR
Feel free to reach out directly if you need any help.
Hi Joshua, I am an investor/wholesaler/commercial agent and mentor in Orlando FL. We have great off market deals all over Florida for any type of buyers tastes. We have SFR and small MF. What is your buying critieria?
@Joshua Smith, Hello from Tampa, I am a new member of BP with the intention to familiarize myself with what all the other investors are doing around the US. I had some Rentals in S. Tampa for 30 years that I personally managed and repaired. Last year I got involved with a neighbor who attended a Real Estate seminar a joined some group that got him to Buy SF Rental houses in different States, while he lived and had a business in Denver. He owned a house across from one of mine and he needed help in repairs and management to rent it again. Turned out that he had four in the Tampa area and they were all in danger of Foreclosure. I don't know about all the other houses in other States, but, this showed me that being an Absentee Owner is not a good idea. I understand that Sales is where the Money is at and that says Rentals to a lot of people because you have the short term Rental income stream and the possibility of Creating Wealth with the use of Time to gain in the Appreciation of Value in the property. But, your Business Plan looks like some kind of Franchising Business without having the Basic Business in place. You don't own Rentals and with that experience, are branching or Franchising out to other Cities or even States. Your Search is for the Best Cities for Buy and Hold, SFR's to invest in. Your going to move there to rehab houses to rent without a License. SFR's here in Tampa produce less profits than Multi-family rentals. You have to depend on finding a Deal property to rehab to show enough monthly rents to make it profitable. If you are not going to move to an area where you intend to live and farm that area, you have to depend on a Team of support for each House and pay Retail for all the help, leaving you with how much Monthly Rents? Houses don't take care of themselves and from what I have read in the BP blogs, I don't see this Business Model as a tasty or profitable, long term way to make Money. I did not go to University and study Business and Finance or get an MBA and I don't know all the different formulas that go into the Study of what makes a good Rental Deal. I can see the reasons why the Flippers would rather not want to hold onto a Tenant nightmare property and just deal with their Contractors and Subs to rehab something and Sell it for a hoped for Profit. But, that removes the ability to Create Wealth by using Time to gain Appreciation in the property Value. You are no longer an "Investor." You are a "Trader," for us who trade in the Markets. In essence, all you did was provide yourself with a JOB. Depending on the JOB you are giving up, it could have been more profitable to just keep your JOB.
From as little as $37,900 to $1.9 mill for a portfolio of 14 properties with 39 rentable units. SFR, duplexes, triplexes and quads and some small portfolios including the one just mentioned all over Central FL. Some of these need rehab and some don't and are rented.