Houston, Charlotte, Philadelphia -> Which market is best to grow portfolio?!

[Malcolm Leake]

My Wife and I are planning on moving very soon, and wanted to start my real estate career in one of these three markets. I wanted to grab the experienced investor's thought process of which is a good entry market to start in if you are starting from 0 properties and $50,000, and eagerly wanted to work your way up and why.

Houston - Has inventory, no state income tax, and has better quality houses for cheaper. I'll be saving money and will be able to purchase more properties faster. The downside I noticed on the "Reventure" application, the market appreciation remains flat or in the negatives. I understand more money is made on appreciation than on mortgage loan paydown.

Charlotte - Has less inventory, more competition. The way of life is still affordable, and the city isn't as big or hot as Houston. So I'll be saving time and money on driving. However, they do have state income tax, and the houses cost more. Would a new investor in the market be able to build a profitable portfolio here? Appreciation is better than Houston.

Philadelphia - Has the highest appreciation of them all. Prices aren't too bad. The town is walkable, things to do. However, supply isn't as much in Houston for lower price points, higher price per sqft. Have to be aware of different neighborhoods with flooding/crime etc.


Which one would you choose? Thank you!

[Denise Supplee]

Hi @Malcolm Leake, That’s a great, well-thought-out comparison, you’re already approaching this like an investor, not just a buyer. If I were beginning from zero with $50K, I’d lean toward Houston and here's why..

Houston gives you more leverage with cheaper entry prices and landlord-friendly laws. Even if appreciation is slower, you can buy sooner, learn faster, and reinvest cash flow into additional properties. It’s a strong market for building experience and momentum.

Charlotte is a healthy, growing market with better appreciation potential, but the higher entry cost and competition can slow your first few deals. It’s great for long-term wealth, but not always the fastest launch pad. 

As for Philadelphia, where I am from, you’re going to face older housing stock, more regulatory complexity, and neighborhood-by-neighborhood variability, manageable, but not ideal when starting out.

Once you build equity and confidence, you can diversify into other markets. But my vote is on Houston.