Newbie investor looking for market reccos

[Lucy Quick]

I am a newbie real estate investor looking to start to build my portfolio this year. I live in LA where there is no hope of cash flow so am looking out of state. I have around 100k to deploy to buy the first 2 properties and want to buy a 3rd next year when Ive re saved. I want to stick to one market only so I don't have to build two teams. I am working with a great real estate coach who has deep relationships and experience in Memphis and Birmingham but neither market appeals to me as I am drawn to more balanced markets that may offer more long term appreciation but lower initial cash flow, especially considering climate migration. I was super interested in Grand Rapids MI but would be looking at SFH between 200 and 240k and could only find very old homes, I was also struggling to find good property managers. Indianapolis felt great but the higher tax for investors ate any cash flow, Omaha I was also interested in but couldn't find cash flow with a higher Capex due to older home stock. Im basically in decision paralysis and wanted to reach out to the community and see if anyone has any reccos. Strong and diverse job market and not somewhere with super high climate risks like southern Florida or CA. Im ok with very minimal cash flow for the first few years, but would definitely need the property to pay for itself / break even. Thank you in advance!

[Nicholas L.]

@Lucy Quick

hello.  this question gets asked a lot.  i can't speak to your "coach" since i don't know them, but what we find is that new investors in HCOL areas like LA often underestimate the cost of owning, as well as the fact that there is no 'cash flow' whatsoever in the first few years.  from your post it seems like you might have a more realistic perspective on things, but a lot of what you said applies everywhere.  "older home stock" for example is actually a lot of the entire country, not just Omaha.  

i don't like to make market recommendations to people i don't know so what i usually say is, are you able to go to your chosen market in person, a whole bunch?  this lets you meet folks, set up a team, get to know a market, etc.  if you can't, maybe reconsider.  the market is unforgiving right now.  returns on non-value add LTRs are very, very low compared to other assets.

i am going to paste some links below for you to read.  i'd be happy to connect directly if you'd like - i don't advocate for any market or approach and in fact, might try to talk you out of it.  hope this is helpful.

Turnkey Nightmare: Property Manager Ignored My Warning About a Missing A/C…

Nightmare with my property manager - advice needed!

Feedback Needed: $8.8k Turnover Quote for 2BR Duplex (Half)

Out-of-State Landlord Nightmare: 4 Months No Rent, Cleveland Escrow Battle

Failed BRR in Memphis TN

A Cautionary Tale About a Property Manager in Cinncinatti

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