WHERE TO INVEST???

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WHERE TO INVEST???

Derek Fike
Member since 2022 · 26 posts · 26 votes

Hey Everyone,

I currently live in Colorado and am looking to purchase real estate to eventually turn into a rental. What are your thoughts on good markets to be targeting (towns, cities, states, etc.). If you were looking to put little cash down and still generate CoC return, where would you be looking?


Thanks everyone!

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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
3y

I would recommend Columbus Ohio personally! Still tons of 1% rule deals here in Columbus Ohio. Plus you get a great mix of positive cash flow and appreciation - it doesn't get better than this! Also, I love how there's tons of catalysts for population and job growth. Columbus is the only city in the midwest and rust belt that is growing in population. Plus, tons of employers like Honda, Intel, Nationwide, Wexner are bringing more jobs here. I'm a local investor and agent here and have worked with many out of state investors, so if you have any questions, would love to help out!

[email protected]614-300-7535
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  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    CoC return? That's gonna be tough. There are some STR that work in Colorado Springs. Long term is going to be tough to cashflow on the front range in Colorado.

    If you want to put only a little down (less than 20%) than you could house hack. 

    If you only want cashflow and cash on cash return you might need to look at other markets. Now if you are after the long term appreciation, loan paydown, and want to own something local than Colorado has great potential. 

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  • Derek Fike
    OP
    Member since 2022 · 26 posts · 26 votes
    3y

    @Ryan Thomson Thanks for the response! Yeah Colorado would be great to invest in for sure, but I think it makes sense to look at other markets for the time being. The southeast region is catching my eye (Texas, FL panhandle, and even MS & AL gulf coast). Could be good to get in those markets and generate some cash flow and use the equity on the property put a higher down payment on property in CO. 

    2Reply
  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    3y
    Quote from @Derek Fike:

    Hey Everyone,

    I currently live in Colorado and am looking to purchase real estate to eventually turn into a rental. What are your thoughts on good markets to be targeting (towns, cities, states, etc.). If you were looking to put little cash down and still generate CoC return, where would you be looking?


    Thanks everyone!


     Cleveland OH is realy good for cashflow with a low PP. Columbus can cashflow as well, but appreciation is where it really shines

    4Reply
  • Ernst S Coriolan
    Real Estate Agent · Kansas City · Member since 2023 · 35 posts · 34 votes
    3y

    Have you considered Kansas City? Very landlord friendly and have opportunities in both Kansas and Missouri. Really most of the midwest is a great place for out of state investor to find some cashflow to buy into other larger markets.

    3Reply
  • Kevin Bartlett
    Realtor · Member since 2023 · 177 posts · 41 votes
    3y

    Have you ever considered Southwest Florida? Shoot me a DM will gladly answer all your questions. Best of luck Derek!

    0Reply
  • Lucie Tighe
    Property Manager · Tampa, FL · Member since 2022 · 147 posts · 66 votes
    3y

    Florida is a great market. Would love to connect and answer any questions if Tampa makes it to the list of considered locations :)

    2Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y

    I would recommend Columbus Ohio personally! Still tons of 1% rule deals here in Columbus Ohio. Plus you get a great mix of positive cash flow and appreciation - it doesn't get better than this! Also, I love how there's tons of catalysts for population and job growth. Columbus is the only city in the midwest and rust belt that is growing in population. Plus, tons of employers like Honda, Intel, Nationwide, Wexner are bringing more jobs here. I'm a local investor and agent here and have worked with many out of state investors, so if you have any questions, would love to help out!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9119 Reviews
    WebsiteView Page
    5Reply
  • Ben Firstenberg
    Investor · Cleveland · Member since 2021 · 247 posts · 240 votes
    3y

    Lots of great market suggestions here. I gotta throw one out for Atlanta. 

    Atlanta is growing very quickly and there's already a shortage of housing here. We're expected to grow from 5M to 8M residents over the next 20 years. Many parts of the city are growing and changing very quickly and there's lots of opportunity here. 

    I will say, the monthly cash flow isn't that great, but there are some ways to juice cash flow that we can talk about if you're interested. Feel free to reach out! Contact information in bio

    1Reply
  • Joel Case
    Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
    3y
    Quote from @Derek Fike:

    @Ryan Thomson Thanks for the response! Yeah Colorado would be great to invest in for sure, but I think it makes sense to look at other markets for the time being. The southeast region is catching my eye (Texas, FL panhandle, and even MS & AL gulf coast). Could be good to get in those markets and generate some cash flow and use the equity on the property put a higher down payment on property in CO. 

     @Ryan Thomson if you need help on the Mississippi Gulf Coast, feel free to reach out. 

    0Reply
  • Derek Fike
    OP
    Member since 2022 · 26 posts · 26 votes
    3y

    @Joel Case

    I was raised in Ocean Springs MS and see the tremendous potential for CoC return in the market there.

    0Reply
  • Joel Case
    Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
    3y
    Quote from @Derek Fike:

    @Joel Case

    I was raised in Ocean Springs MS and see the tremendous potential for CoC return in the market there.

     Nice! I have lived in Ocean Springs for about 6 years now, having lived in Long Beach prior to that. I have recently observed some crazy rents on ads posted recently, I am interested to see if those homes rent quickly or not. $2990 a month for a newer 4/3.5 in Southe Point. 

    0Reply
  • Derek Fike
    OP
    Member since 2022 · 26 posts · 26 votes
    3y

    @Joel Case It's crazy to see the the CoC return potential for the MS gulf coast now. I'm wondering if Biloxi will catch up, however, the supply there is much less. Property values are still a good deal in the area.

    0Reply
  • Ben Scarborough
    Realtor · Gulf Shores, AL · Member since 2020 · 153 posts · 76 votes
    3y
    Quote from @Derek Fike:

    @Ryan Thomson Thanks for the response! Yeah Colorado would be great to invest in for sure, but I think it makes sense to look at other markets for the time being. The southeast region is catching my eye (Texas, FL panhandle, and even MS & AL gulf coast). Could be good to get in those markets and generate some cash flow and use the equity on the property put a higher down payment on property in CO. 

    Hey Derek,

    The AL Gulf Coast is a fantastic area. We are growing at a rapid pace here, and I could easily argue this area has one of the lower seasonality issues for beach markets because of the high demand from snowbirds (Midwest states) from January-April due to the access from I-65.

    I-65 is a straight shot South for many of the midwestern states. It's insane to see the growth in attendees at our church from the first week of January to the first week of February. I would wager it quadruples. Please feel free to reach out if you would like to discuss the AL Gulf Coast more, I am happy to help!

    -Ben Scarborough

    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Derek Fike
    Cleveland and Columbus, OH, are great markets for cash flow and are landlord friendly. 

    [email protected]614-412-4565
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  • Derek Fike
    OP
    Member since 2022 · 26 posts · 26 votes
    3y

    @Patrick Drury What are some of the rental rates you are seeing in Columbus for a 3 or 4 bedroom SF home?

    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3y
    Quote from @Derek Fike:

    Hey Everyone,

    I currently live in Colorado and am looking to purchase real estate to eventually turn into a rental. What are your thoughts on good markets to be targeting (towns, cities, states, etc.). If you were looking to put little cash down and still generate CoC return, where would you be looking?


    Thanks everyone!


     The Columbus market is great for real estate investors to get started. There are areas that I definitely recommend in the Columbus market that I personally invest in like Old North, Merion Village, Driving Park. These are all great areas that you can buy investment properties in and let your net worth skyrocket. 

    These are all areas within the Columbus market that is next to an economic base. They are surrounded by economic development which is causing a good increase in population and rent growth. 

    Let me know if you need information on the Columbus market or just want to simply hop on a call and discuss. 

    [email protected]614-802-5698
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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Before you invest out of state you need to figure out a system to make buying & renting seamless. You can buy the greatest deal and fall flat on your face without a good team. 

    2Reply
  • Steve Ehrman
    Troy, MI · Member since 2019 · 61 posts · 20 votes
    3y

    @Derek Fike. The Detroit metro area is what I know. CoC can be as high 20-25%.>, with the right property.

    0Reply
  • Pat HeidingsfelderBusiness Member
    Real Estate Broker · Biloxi, MS · Member since 2016 · 169 posts · 92 votes
    3y
    Quote from @Joel Case:
    Quote from @Derek Fike:

    @Joel Case

    I was raised in Ocean Springs MS and see the tremendous potential for CoC return in the market there.

     Nice! I have lived in Ocean Springs for about 6 years now, having lived in Long Beach prior to that. I have recently observed some crazy rents on ads posted recently, I am interested to see if those homes rent quickly or not. $2990 a month for a newer 4/3.5 in Southe Point. 

    👋👋 that’s my new listing! MS Coast Rentals. I have a few interested already! 

    The CoC returns all along the Coast are pretty good. 
    [email protected]228-364-1818
    MS Coast Rentals4.978 Reviews
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    1Reply
  • Account Closed
    Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    3y

    @Derek Fike what research have you done already and what markets are you interested in?

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Derek Fike:

    Hey Everyone,

    I currently live in Colorado and am looking to purchase real estate to eventually turn into a rental. What are your thoughts on good markets to be targeting (towns, cities, states, etc.). If you were looking to put little cash down and still generate CoC return, where would you be looking?


    Thanks everyone!


     Before some advise you to invest in Ohio, my best suggestion for you is you need to understand the rent 200 kilometers from your place, including comps. Once you understand all this data, you know where to invest. Don't just blindly follow people to invest in Ohio,WI or Alabama without complete understanding of your own backyard.

    1Reply
  • Joel Case
    Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
    3y
    Quote from @Pat Heidingsfelder:
    Quote from @Joel Case:
    Quote from @Derek Fike:

    @Joel Case

    I was raised in Ocean Springs MS and see the tremendous potential for CoC return in the market there.

     Nice! I have lived in Ocean Springs for about 6 years now, having lived in Long Beach prior to that. I have recently observed some crazy rents on ads posted recently, I am interested to see if those homes rent quickly or not. $2990 a month for a newer 4/3.5 in Southe Point. 

    👋👋 that’s my new listing! MS Coast Rentals. I have a few interested already! 

    The CoC returns all along the Coast are pretty good. 

    I know, I hadn't thought about South Pointe as an investment opportunity until I saw your ad, so I am interested to see how it goes. Someone I know rented an older home in Magnolia Bayou two years ago for $2500 a month, so I think if that same demand is there with this home being bigger and newer it should be no issue.

    0Reply
  • Geoff Stuhr
    Investor · Milwaukee, WI · Member since 2015 · 70 posts · 44 votes
    3y

    Really depends on the asset/project/business plan but I love the linear markets such as Wisconsin or Ohio. Linear markets have a more flat growth curve and are not "boom and bust" type markets. I live in Reno NV and Milwaukee WI - I would consider Reno to be a very hot boom/bust market, while Milwaukee is a very steady eddy predictable linear market with great cashflow. Our business focuses primarily on industrial real estate throughout Southeastern Wisconsin - some people call it the "Machine Shop of the World". I like it because we have a solid blue-collar employment base that is specialized in manufacturing, we can buy properties at cap rates that allow for strong predictable cashflow, and then we can execute our business plan to pull some value-add levers and increase the net operating income. Note - as I mentioned at the beginning, it's all about the project and business that you want to be in - if I was going to buy a short-term rental I would look at areas that have year-round desirability such as Arizona, Tennessee, and Florida. 

    3Reply
  • Matt Cyberski
    Investor · Chicago, IL · Member since 2016 · 4 posts · 1 vote
    3y

    @Kevin Bartlett I've been considering SW Florida. What are your thoughts there?

    1Reply
  • Kristina Kuba
    Tampa, FL · Member since 2021 · 383 posts · 389 votes
    3y

    @Derek Fike

    I am in Tampa and own a few short term rentals myself here. Born and raised in Tampa, Obviously I think Tampa is an amazing market. Regardless, make sure your city and neighborhood that you are investing in have different types of STR travel demographics.

    For example, here in Tampa not only do we have theme park and beach tourism (#5 ranked beaches by TripAdvisor in the world in 2021), we have educational tourism (one of the largest universities - USF and then UT), and also medical tourism (we have some of the best hospitals in the country especially for outpatient services). Tampa General Hospital has been named one of the top 100 hospitals in the United States, according to Newsweek. The 1,041-bed hospital was recently ranked as one of the news magazine's World's Best Hospitals 2022.

    Look for agents that align with your interest. Interview a few and see what is a good fit for your STR aspirations. The agent you choose should be an investor themselves because they are going to have the rolodex of plumbers, cleaners, lawn care, etc. that are reputable and low cost. If you are not self managing, make sure to see if they can provide you with plenty of referrals of STR hosts that are cost effective and have superhost status.

    Reach out if you have any questions.

    Best of Luck!

    1Reply
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