All Forum Posts by: David W.

@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

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

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...

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?

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

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.

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.