Best cities to invest in for multi units 2-4

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Best cities to invest in for multi units 2-4

Khalida Bradford
Rental Property Investor · Los Angeles, CA · Member since 2018 · 4 posts · 3 votes
Hey all, I’m new to this app and real estate all altogether. I’m from Los Angeles and recently bought my first 4unit property. I would like to expand my real estate portfolio, but LA is way too expensive. Any suggestions or feedback regarding top cities to invest. I am interested in 2-4 units open to all areas. Feedback I received so far was Detroit and Baltimore.
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
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There is no such thing as the best or worst. There is only the expected return measured against the risk of the asset and market. Higher potential return does not equal a higher return. A higher potential return is indicative of higher risk. 

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  • Mo Weis
    Real Estate Agent · Cleveland, OH · Member since 2016 · 58 posts · 9 votes
    7y

    Northeast ohio. - cleveland

    0Reply
  • Myrron Branch
    Member since 2018 · 3 posts · 1 vote
    7y

    Toledo, Ohio

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  • Myrron Branch
    Member since 2018 · 3 posts · 1 vote
    7y

    Toledo, Ohio

    0Reply
  • Nicholas Kelley
    Flipper/Rehabber · Houston, TX · Member since 2018 · 1 post · 0 votes
    7y
    @Khalida Bradford Hey Khalida, did you use a FHA loan to purchase your 4 unit?
    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    7y

    Welcome @Khalida Bradford it's nearly impossible to respond to your question without asking a dozen first...folks are partial to where they live, so they'll always say their city is the best, even if its a sh&% hole...

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  • Dante Pirouz
    Investor · Almont, MI · Member since 2015 · 360 posts · 302 votes
    7y

    Hi @Khalida Bradford I would try to avoid being overly enticed with seemingly low acquisition cost areas like Detroit until you build up some experience and expertise. You have to be very careful with your numbers in areas like that since the rehab costs are often steep because basic systems (plumbing, HVAC, roof, etc.) are often gutted and you have to consider that property taxes in these urban areas are usually astronomical with very difficult, off the radar tenant pool (hard to track incomes, criminal records) who have a lot of experience working the system to stay under a roof. You will want to be able to give yourself as a newbie as much room to make mistakes as possible and save the tough tenant run ins (think guns, squatters, domestic violence, etc.) for when you have built up a tough enough gut dealing with some easier properties. I would definitely look to the outskirts, suburbs of some midwestern cities like Detriot or Toledo and partner with someone local to act as your boots on the ground.

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  • Khalida Bradford
    OP
    Rental Property Investor · Los Angeles, CA · Member since 2018 · 4 posts · 3 votes
    7y
    @Nicholas Kelley yes I did
    1Reply
  • Edward Liu
    Palo Alto, CA · Member since 2017 · 230 posts · 200 votes
    7y

    I don't think city matters, but area within the city is the key.  Avoid C and D (big NO) areas if you are just starting out.  Look for B- or B areas if possible, even if price is higher.  Mid west or north east and maybe some parts of FL has low prices and relatively high rent.  Look for cities (overall metro) population with more than 1M in population and decent population growth.  I only invest in cities with at least 1 professional sports team (from NBA, MLB, NHL, or NFL).  

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    There is no such thing as the best or worst. There is only the expected return measured against the risk of the asset and market. Higher potential return does not equal a higher return. A higher potential return is indicative of higher risk. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    2Reply
  • Carlos Gonzalez
    Investor · Phoenix, AZ · Member since 2015 · 346 posts · 170 votes
    7y
    @Khalida Bradford Anywhere As long as the renters are paying and you’re using the money to pay the mortgage and you have some money left over to maintain the property I’d say that’s a win. Now if you’re asking where can you get more for your buck it really depends on you.
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