First rental investment

Mesa, Arizona
First-Time Home Buyer
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First rental investment

Lynn Wong
Member since 2023 · 56 posts · 23 votes

Hello everyone! Newbie here, I need some advice about investment in Arizona (Mesa, San Tan Valley..). Thought about Stockton or Sacramento area but CA is not landlord friendly state and housing too expensive here to have minimal cash flow or break even with high down payment (30% of 475K). Which market should I look into with about 400 K or less and give some cash flow or appreciation? Thank you very much! 

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Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
3y

@Lynn Wong
I would recommend looking at Columbus, OH. You can get good cash flow and solid appreciation at the same time. Columbus has a lot of job opportunities and population growth. Especially with Intel coming to Columbus as well as Hyperion, which is a company that makes hydrogen fuel cells. Columbus is home to the HQ of Chipotle, Wendys, White Castle, L-Brands, and Hunnington. Columbus is also home to OSU, which constantly develops real estate, employs lots of jobs, and attracts students from the US and internationally to attend. On top of all of that, it boasts one of the best college football teams Ohio State Buckeyes, which is very well known and has a cult following, and attracts a lot of people to the games. If you don't care about appreciation at all you should look at Cleveland OH. Cleveland has a bit higher cash flow than Columbus in exchange for the appreciation.

[email protected]614-412-4565
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  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y
    Quote from @Lynn Wong:

    Hello everyone! Newbie here, I need some advice about investment in Arizona (Mesa, San Tan Valley..). Thought about Stockton or Sacramento area but CA is not landlord friendly state and housing too expensive here to have minimal cash flow or break even with high down payment (30% of 475K). Which market should I look into with about 400 K or less and give some cash flow or appreciation? Thank you very much! 


     I would recommend looking into markets in the midwest. Specifically Columbus or Cincinnati. You can find plenty SMF in Cincinnati, not sure about Columbus. I can connect you with someone who knows more about that market. Let me know how I can help!

    [email protected]859-443-4952
    Sam McCormack Realtor
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    4Reply
  • Peter Dorinsky
    Real Estate Agent · Columbus, OH · Member since 2020 · 149 posts · 193 votes
    3y
    Quote from @Lynn Wong:

    Hello everyone! Newbie here, I need some advice about investment in Arizona (Mesa, San Tan Valley..). Thought about Stockton or Sacramento area but CA is not landlord friendly state and housing too expensive here to have minimal cash flow or break even with high down payment (30% of 475K). Which market should I look into with about 400 K or less and give some cash flow or appreciation? Thank you very much! 

    Hey Lynn, I'd also recommend checking out Columbus, Ohio. Many big-tech companies are either moving into the market or expanding their business here, which is contributing to rapid economic development. Intel is investing $20 billion to build chip manufacturing plants in Licking County, which is projected to create 30,000 new jobs. This is the largest private investment in state history. In addition to Intel, other big companies like Google, Amazon and Facebook are also expanding their business here in Columbus. Columbus is also home to The Ohio State University, one of the largest public universities in the country, as well as L Brands, a big player in the retail industry.

    Ohio is also a landlord-friendly state. Columbus is a great hybrid market if you're looking for cash-flow and appreciation with homes at a lower price-point and lower taxes. If you're interested in learning more about the market I'd be happy to connect.

    3Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Lynn Wong:

    Hello everyone! Newbie here, I need some advice about investment in Arizona (Mesa, San Tan Valley..). Thought about Stockton or Sacramento area but CA is not landlord friendly state and housing too expensive here to have minimal cash flow or break even with high down payment (30% of 475K). Which market should I look into with about 400 K or less and give some cash flow or appreciation? Thank you very much! 

    Hi Lynn, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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    1Reply
  • Mason WeissBusiness Member
    Realtor · Phoenix, AZ · Member since 2021 · 523 posts · 239 votes
    3y

    Hey @Lynn Wong, San Tan Valley is a strong long term rental market with growing infrastructure that appeals to families looking to buy or rent. With your budget, you can find a property that is less than 20 years old in a neighborhood with highly rated schools. Cash flow will still be difficult at this price point but with a large enough down payment, you will be able to make the numbers work. Happy to chat more about it, DM me if you are interested in talking further.

    [email protected]480-818-7745
    3Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Lynn Wong
    I would recommend looking at Columbus, OH. You can get good cash flow and solid appreciation at the same time. Columbus has a lot of job opportunities and population growth. Especially with Intel coming to Columbus as well as Hyperion, which is a company that makes hydrogen fuel cells. Columbus is home to the HQ of Chipotle, Wendys, White Castle, L-Brands, and Hunnington. Columbus is also home to OSU, which constantly develops real estate, employs lots of jobs, and attracts students from the US and internationally to attend. On top of all of that, it boasts one of the best college football teams Ohio State Buckeyes, which is very well known and has a cult following, and attracts a lot of people to the games. If you don't care about appreciation at all you should look at Cleveland OH. Cleveland has a bit higher cash flow than Columbus in exchange for the appreciation.

    [email protected]614-412-4565
    Reafco-556 Reviews
    View Page
    4Reply
  • Lynn Wong
    OP
    Member since 2023 · 56 posts · 23 votes
    3y

    Thank you very much everyone for your great advice! Yes , I am sure that I will be connected with you soon. I am glad that I joined this forum. Have a great day!

    1Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    3y
    Quote from @Lynn Wong:

    Hello everyone! Newbie here, I need some advice about investment in Arizona (Mesa, San Tan Valley..). Thought about Stockton or Sacramento area but CA is not landlord friendly state and housing too expensive here to have minimal cash flow or break even with high down payment (30% of 475K). Which market should I look into with about 400 K or less and give some cash flow or appreciation? Thank you very much! 

    Hi there! Considering your budget, Columbus, OH might be an excellent choice. It offers a stable market with good potential for both cash flow and appreciation. Feel free to explore the opportunities here.
    [email protected]786-494-6766
    Section 8 Launch52 Reviews
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    0Reply
  • Josh YoungPro Member
    Rental Property Investor / REALTOR® / Property Manager · Gilbert, AZ · Member since 2023 · 384 posts · 421 votes
    3y

    @Lynn Wong San Tan Valley and even a little farther out into Florence you can buy a new build that will cash flow at 30% down. You can get a lower interest rate on a new build using the builder's lender and you will have almost no cap ex or maintenance/repairs for several years (long enough to give you time to raise rents and maybe even refinance). This area is growing and will continue to grow with the addition of new highways connecting this part of the valley. Full disclosure, I am an investor and agent/property manager in this area and I help investors find, analyze, buy, and manage properties using this exact strategy.

    [email protected]802-274-8121
    2Reply
  • Andrew McGuire
    Real Estate Agent · Chandler, AZ · Member since 2022 · 215 posts · 156 votes
    3y

    Mesa has been very good to me. I like to look for the homes built 30-50 years ago, usually less HOA restrictions and opportunity to force rents up, specifically exterior entrance, garage conversion or add casita. Most bang for your buck in Mesa.

    1Reply
  • Justine Phillipson
    Real Estate Agent · Phoenix, AZ · Member since 2020 · 74 posts · 58 votes
    2y

    My rentals are in South Bend, Indiana and are doing wonderful! I like my property manager too

    0Reply
  • Clyde PattonPro Member
    Member since 2018 · 3 posts · 5 votes
    2y

    I have a rental in South Bend and I am looking for a property manager.  Would you mind sharing your property manager's contact information?

    1Reply
  • Long LeBusiness Member
    Real Estate Agent · Chandler, AZ · Member since 2021 · 28 posts · 9 votes
    2y

    If you want to stay in AZ. Mesa and Chandler do actually have some options that are less than 400k, although they may be older in age, 1980 ish. 

    If you are willing to go further, Maricopa or Buckeye is not a bad option. 

    I'd be happy to discuss more options in AZ with you, I am a locat agent here, reach out anytime if needed

    [email protected]480-480-7948
    0Reply
  • Bradley BuxtonBusiness Member
    Real Estate Agent · NV · Member since 2023 · 1k+ posts · 713 votes
    2y
    Quote from @Lynn Wong:

    Hello everyone! Newbie here, I need some advice about investment in Arizona (Mesa, San Tan Valley..). Thought about Stockton or Sacramento area but CA is not landlord friendly state and housing too expensive here to have minimal cash flow or break even with high down payment (30% of 475K). Which market should I look into with about 400 K or less and give some cash flow or appreciation? Thank you very much! 

    @Lynn Wong look at investing closer to AZ. Have you thought about NV? Reno is geographically restricted building and cash flow multi family opportunity. The California migration of people and tech companies will force appreciation and rent growth. We specialize in helping investors in the Reno Tahoe area. It’s really a gem out west. 

    0Reply
  • Account Closed
    New to Real Estate · TX · Member since 2023 · 27 posts · 28 votes
    2y

    TN,Ohio, FL, TX, OK are some great markets to look at and they are landlord friendly

    0Reply
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