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All Forum Posts by: David W.

David W. has started 29 posts and replied 133 times.

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Michael McCoy:

@David Waddleton

Hi David,


I have 3 rentals in Northern Ohio, particularly, the Cleveland area. The market has been great for cash flow and appreciation the last several years. The state of OH has pumped billions into the city's infrastructure and the Cleveland Clinic has been a great anchor for thousands of jobs. 

There are opportunities from the late $40K-mid $90K. Double digit cap rates. Hope that is helpful for you.

Thanks,

Mike

Thanks Mike. Cleveland has definitely come up several times and so has Indianapolis, Kansas City, Pittsburgh. My head is spinning with peoples opinions and so I'm trying to find a way to research facts. I am good with researching once in a city but trying to deduce 50 states down to a few I have no idea. If you do please let me know would love to learn!

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Matt Smith:

Consider rural towns/cities like the following:

Kenedy, 78119, Karnes City, 78118, Edna, 77957, Brazoria, 77422, and Lake Jackson (and surrounding areas Angleton, Clute)

All in Texas

Easier to leverage money and find owner finance deals, easier to find prices in the <$70k range, and rents are very good.  Why invest in these "cities" of small populations?

Karnes County Oil Boom (Eagle Ford Shale), went from one of the poorest counties in the nation to one of the wealthiest due to fracking.  Billions in commitment from ConnocoPhillips, Marathon Oil, Ashland Chemical, Pioneer, Wood Group, and more.  Not to mention that even when oil was rock bottom, all of residential units stayed lease with reduced rent, which was still great return based on purchase price (Ex triplex purchased for 54,000+17,000 remodel/repairs nets 1300+/mo). 

Edna (Jackson County) benefiting from jobs in Victoria, Port Lavaca, and Port Comfort. Duplex recently purchased < $55k and bottom unit leases for $850/mo (all utilities included up to $150), and upstairs scheduled to rent for $750 (same)

City of Brazoria experiencing growing pains due to Lake Jackson area overpopulation up and down 288, and seeing Hwy 36 as healthy alternative.  Billions in commitments from Freeport LNG, DOW, BASF, more, and Port of Freeport.  Port of Freeport will contribute jobs to economic growth and is taking great strides to be the deepest port along Texas coast in efforts to attract the Panamax Tankers from the Panama Canal.  Most of Brazoria County flooded during Harvey, but deals can be had along Tx Hwy 36 (commercial/residential) that stayed high and dry.

If all else fails, consider buying half, or less, of a nn performing commercial asset where you'll receive 1/2 of the income, appreciation, and none of the management; however, you'd still be responsible for 1/2 taxes, liability, etc.  

Available to answer any questions about any real estate anytime. These are examples of what I've done, and I've spent less and made more ROI overall than my inner city investment pals.

Rural is easily overlooked, but full of hidden gems in my opinion. Look for low cost, low taxes, Jobs, and path of progress.

Happy investing

With Texas property tax being one of the most expensive in the country at 1.86% and the 3rd most expensive homeowners rates it seems that with these numbers you HAVE to get the highest incomes to offset these expenses. I can't speak from experience as I am doing my research still (not really sure how to reduce to a few states by numbers research census etc) but it seems Florida and Texas aren't that great? 

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Freddy Perez:

David,  are you looking to invest $50k and do some work to it or are you looking for turn key?  My wife and I have a 3-2 single family home in Lithonia GA that we purchased back in January 2018, for just under $100k.  Then in July we purchased a duplex in Valdosta GA for under $50k (never saw it personally).  Both needed just minor work to it, and both in class C neighborhoods.  All 3 properties have been cash flowing since we got them.  You can also look into Columbus, GA  and Augusta, GA.  I have looked into Jacksonville, FL Cleveland, Detroit, and Indianapolis myself...

 Thanks for the reply. I'm not sure to be honest. I'm still trying to find out (hopefully by the forum) on how to research and reduce 50 states down to a few and then from there research best cities down to a few. There is SO much information at census.gov from population to housing info. A LOT of info. Do you know of or recommend what primary info to research to reduce 50 states down to a few? 

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Alan Reza:

I've been working on this chart to break down how I compare the three cities we're looking at for out-of-state investing: Indianapolis; Kansas City; and Cleveland.

So far, despite the higher median home price, I'm leaning towards Kansas City because of the greater population growth, higher ranked STEM careers in the overall occupations of  the populace and greater number of "above average schools" making it a more desirable place to live.  

Anyone have any other thoughts about the data and/or real life experience of comparing these three areas?

Now this is what I'm talking about! You are doing what I am trying to figure out how to do but for starting with all of united states .How do you do this type of research to eliminate states and get it down to a handful of cities? Once I get it to one city that is where I feel most confident in. Let me know your thoughts.  

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Bryan Johnson:
@David Waddleton why do u hate Pittsburgh so much that was one city I was thinking of investing in

 Lol just grew up there 15 to 18. Bad time in life BUT should look at numbers. Goes bad to how to research still lost with that

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117

@Jason Ray Richardson thanks for your thoughts. I am honestly trying to find a way to research and find an area as opinions are varying greatly. Maybe all of them are good I don't know. So far property tax is one that I have learned but the rest of the points to research I don't know really. Thoughts?

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Matt Smith:

Consider rural towns/cities like the following:

Kenedy, 78119, Karnes City, 78118, Edna, 77957, Brazoria, 77422, and Lake Jackson (and surrounding areas Angleton, Clute)

All in Texas

Easier to leverage money and find owner finance deals, easier to find prices in the <$70k range, and rents are very good.  Why invest in these "cities" of small populations?

Karnes County Oil Boom (Eagle Ford Shale), went from one of the poorest counties in the nation to one of the wealthiest due to fracking.  Billions in commitment from ConnocoPhillips, Marathon Oil, Ashland Chemical, Pioneer, Wood Group, and more.  Not to mention that even when oil was rock bottom, all of residential units stayed lease with reduced rent, which was still great return based on purchase price (Ex triplex purchased for 54,000+17,000 remodel/repairs nets 1300+/mo). 

Edna (Jackson County) benefiting from jobs in Victoria, Port Lavaca, and Port Comfort. Duplex recently purchased < $55k and bottom unit leases for $850/mo (all utilities included up to $150), and upstairs scheduled to rent for $750 (same)

City of Brazoria experiencing growing pains due to Lake Jackson area overpopulation up and down 288, and seeing Hwy 36 as healthy alternative.  Billions in commitments from Freeport LNG, DOW, BASF, more, and Port of Freeport.  Port of Freeport will contribute jobs to economic growth and is taking great strides to be the deepest port along Texas coast in efforts to attract the Panamax Tankers from the Panama Canal.  Most of Brazoria County flooded during Harvey, but deals can be had along Tx Hwy 36 (commercial/residential) that stayed high and dry.

If all else fails, consider buying half, or less, of a nn performing commercial asset where you'll receive 1/2 of the income, appreciation, and none of the management; however, you'd still be responsible for 1/2 taxes, liability, etc.  

Available to answer any questions about any real estate anytime. These are examples of what I've done, and I've spent less and made more ROI overall than my inner city investment pals.

Rural is easily overlooked, but full of hidden gems in my opinion. Look for low cost, low taxes, Jobs, and path of progress.

Happy investing

 Texas property tax is 1.86%. Some people said they don't invest in Texas because of that but if I take $100,000 x 1.86% = $1860 vs lets say Indiana at 0.87% x $100,000 = $870 and when you are renting it out for under a $1000 a month then that extra $1000 for the end of the year is a big deal. 

Post: Best Cities to invest in under $100k

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Scott Moulton:

I see a lot of out of state investors asking about midwest cities, but then I also hear a lot of people say there are still plenty of opportunities in places like CA, FL,  TX, etc.  Ironically I've heard St. Louis investors talk about how this market isn't that great and suggest looking outside STL.  Wondering how much of this is the "grass is always greener" effect.  Also wondering if investors are going to start moving away from metro to mid-size markets in the 40k to 100k population range.

Well I hear TX is great but the property tax and landlord rights aren't as great as other states. Florida same issue but with homeowners insurance. I'm not speaking from experience. It keeps coming back to me that I have to do my own research as opinions vary so greatly. Question is how to do time efficient research and what exactly to search for to hone into a city or two.

Post: Los Angeles Connections

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117

ok great thank you!

Post: Los Angeles Connections

David W.Posted
  • Investor
  • Los Angeles
  • Posts 134
  • Votes 117
Originally posted by @Ali Boone:

I second the @Jeff Greenberg meetup. It's a really good one, super casual, can ask any questions you might have.

Are you wanting to find out information for you to use to start investing? You can get tons of information on here and from folks on here to help fill the gaps between meetups.

Thanks I reached out but they wont have one I think until Dec. Just wanted to meet with like minded to bounce ideas etc