State/ county to start rehab investment ?

State/ county to start rehab investment ?

Rental Property Investor · Chicago · Member since 2020 · 7 posts · 3 votes

Hope this post doesn’t seem as newbie as I am since I am new to the game. I have finished most books on this site and now am ready to start ( primarily rehab projects but am open to rehab and rent approach too ). My approach is to first select the state I want to investigate , then find the county and then city and finally the neighborhood but am stuck in the very first step !

I live in Chicago and own and fly my aircraft which gives me some 300-400 miles comfortable radius to invest ( IL , WI, IN , MN, IA , MO fall within 2 hours flight time). No need to say that I am not ready for distant investment yet.

I am analyzing these markets but each one falls short in some serious aspects. One shows great population income but not much value growth , another has better economy but has over priced safe neighborhoods , etc, etc ,.....

Want to learn from your expert point of view , which state ( if any ) would you pick among the ones mentioned above and what metrics get you excited about your choice . Any advice is highly appreciated !

0Reply
14 views

Most Popular Reply

Investor · Fort Worth, TX · Member since 2014 · 48 posts · 15 votes
6y

Hi, just googl'ing "top real estate investing markets for 2020" returned this article from "Bigger Pockets"...  Check it out, good read:
https://www.biggerpockets.com/member-blogs/10145/68178-top-real-estate-markets-to-invest-in-through-2020

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    6y

    @Arsalan Augend there was a post put out a short time ago that listed the best investment markets, MN was right at the top of that list. With that data and consideration of the current state of things in Chicago-land, IA just being IA (lol) I would say of that list it is a no brainer, MN stands head and shoulders above. 

    I suggest you look up these data rankings as this post will be like turning on a bug zapper for the promotions of peoples own markets vs data approach. 

    As i said of those listed states, MN without a doubt. and best would be MI, in my opinion, although I feel it needs a bit more time to "season" where it is at. Remember MI has gone through a big change of self, it's still got some evolving to do in that process. IL satellites to Chicago-land would be my #3 although I dont like the expense of it all as capital can better leverage in other deployments. IN and MO have never hit the metrics I look for so can't say much there past that. 

  • Investor · Fort Worth, TX · Member since 2014 · 48 posts · 15 votes
    6y

    Hi, just googl'ing "top real estate investing markets for 2020" returned this article from "Bigger Pockets"...  Check it out, good read:
    https://www.biggerpockets.com/member-blogs/10145/68178-top-real-estate-markets-to-invest-in-through-2020

  • Rental Property Investor · Chicago · Member since 2020 · 7 posts · 3 votes
    6y

    @Andrew Briggs great read. Thank you so much

  • Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
    6y

    What was your conclusion on Wisconsin? And Why?   

  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Arsalan Augend:

    Hope this post doesn’t seem as newbie as I am since I am new to the game. I have finished most books on this site and now am ready to start ( primarily rehab projects but am open to rehab and rent approach too ). My approach is to first select the state I want to investigate , then find the county and then city and finally the neighborhood but am stuck in the very first step !

    I live in Chicago and own and fly my aircraft which gives me some 300-400 miles comfortable radius to invest ( IL , WI, IN , MN, IA , MO fall within 2 hours flight time). No need to say that I am not ready for distant investment yet.

    I am analyzing these markets but each one falls short in some serious aspects. One shows great population income but not much value growth , another has better economy but has over priced safe neighborhoods , etc, etc ,.....

    Want to learn from your expert point of view , which state ( if any ) would you pick among the ones mentioned above and what metrics get you excited about your choice . Any advice is highly appreciated !

    We've invested in 2 of your states, IL & MO. In MO we were invested in and/around the St. Louis area. One of the reasons we stopped investing in MO was we found the market too small. This was a while back when all our $ was in one market, MO. Because of MO we started investing in multiple markets & ended up in your backyard. Why did we like IL. Large diverise market with over 100 submarkets. Even with all of it's problems the diversity, price points & margins were attractive. We tried IN, where price points were lower but found the profits to be lower. 

    Never explored WI, MN or IA.  Of those 3 the only one we would ever consider would be MN around the twin cities. Again because of size and diversity.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.