Best places to invest for a rental property

265 Replies

Indianapolis, IN all the way down to Bloomington, IN. There's a ton of growth in the area, plus a new highway that will be finished in a couple of years. There are many deals well below your range in this area. 

Originally posted by @Armel Bemmo :

@Anthony Holloway

Before you invest in any place , you should mostly take into account, property taxes, taxation on rental income and whether or not the state is landlord friendly. Hence, avoid to invest in California where you live,new-york, new-jersey, Hawaii, Oregon..etc. The good places are: Memphis(Tennessee), Orlando( florida), Columbus/ Cleveland(Ohio), Henderson (Las-vegas), Texas. If I were you, I would wait for the real-estate market correction. It is crazy out there now (less inventories and too much demand because of the low-mortgage interest rate).

 Yeah investing in Columbus, Ohio is great. I started 3 years ago and have been able to build a solid portfolio.

Cash flow or appreciation?   Growth markets don't appreciate if new construction is not prohibited.  In the next 10 years, Austin, Tx surely is a growth market.   For cash flow, quite a few places in middle America, but be careful with tertiary towns.  Or rust belt towns.  Avoid class C properties as a beginner.  

It really just depends. Of course like you, its not impossible, just hard to find. But I am willing to find it for anyone looking. Sometimes you have to go A little higher tho. For example instead if a 5 or 6 bedroom house. Get a small building for a 1mil or so. I saw a great 4 unit building for 1.1mil. It has about 14 or 15 Bedrooms. @Fab Ragh

Originally posted by @Austen Mueller :

@David Haynes I live in bucks county 45 min from philly. I have an off market deal I’m working on. It would be my first deal. And I would like to wholesale it. I would appreciate your thoughts if you have time. Thanks

Bucks County PA is a nice area for sure. From my experience though, most have to pay retail prices for as-is properties. I've done a few deals in Bucks, I'd be interested to hear about yours. 

Originally posted by @Chad Summy :

@David Haynes you have any experience towards the Lancaster Reading area? I’m a local there and wanting to understand if this is a worth while area and what to look for


 I don't venture out that way. I'm trying to focus on Philly and its suburbs for now. But I have made some connections with investors in that area. Some have turned their attention to Philadelphia, but I don't know their motives other than diversifying their portfolio. Philadelphia is different in that it's in that convenient location in the middle of NYC, DC, Wilmington, and all of NJ. Every week I'm crossing paths with investors from these areas. But yes, regarding the market in Lancaster and Reading, I'm definitely not the expert.

Any investors in Lancaster or Reading that can provide some insight?

Hi Anthony. I just saw your question and am seeing a lot of people replying with cities that they think are a great place to cashflow. However, I strongly encourage you to buy your rental property in a location that is relatively close to where you live (no more than a 2 hour drive radius). There are a number of reasons why I say this. 

1) You will already know the surrounding area of where you live well and what neighborhoods you might want to avoid or take caution in buying your property. There are plenty of markets where the quality of neighborhood (and therefore rent you can achieve) can drastically change just by walking across the street. 

2) If it is your very first rental property, or even in your first 5, you'll want to be able to drive to it relatively easy to handle any issues that may come up. Owning multifamily units is never clean and never easy. Something will always go wrong. If you have to outsource every single thing that goes awry rather than just driving over to change an exterior bulb or paint a fence, then your expenses are going to go through the roof. 

3) This point ties into the second point but is worth having its own category. The only time you should fell comfortable buying a rental out of state is if it is large enough to support a management company (usually 8units +). Not only will they handle the repairs and maintenance above, but they will also rent and turn the units when tenants leave. You need to be close enough to your properties to get them rented when and if the previous tenants move out. 


Buy in your home state/city. The returns may not be equal on paper, but once you actually purchase the property, you will quickly realize that it was not worth buying a duplex in a state/city that is far and foreign from you. 

Originally posted by @Brandon DeVega :

It really just depends. Of course like you, its not impossible, just hard to find. But I am willing to find it for anyone looking. Sometimes you have to go A little higher tho. For example instead if a 5 or 6 bedroom house. Get a small building for a 1mil or so. I saw a great 4 unit building for 1.1mil. It has about 14 or 15 Bedrooms. @Fab Ragh

 Brandon, you can email me any 5 bedrooms homes you find in NYC for $400k.  A $1 MM property is 2.5x more expensive than a $400k building, not exactly "a little higher".