Choosing A Market - What Markets Do You Recommend?

[Heidi Thompson]

I'm currently trying to figure out where I want to invest for my first out-of-state investment property. I know some things I definitely do and don't want and am curious if you have any markets you'd recommend for long-term buy & hold rentals. 

Things I'm looking for:

Population growth, diverse industries/job base (all the usual stuff that indicates long term growth)

I'm debating between single and multifamily but I'd love to find a market that has small multifamily properties in A or B (maybe C+) neighborhoods (some places I've looked at only have these in D class areas)

Cash flow but also some appreciation, can be moderate for both I'm not looking for anything crazy

A less expensive market than San Diego (the cost of entry here is nuts)

Things I want to avoid:

Markets that are all cash flow and no appreciation

Markets with very low average income and very low property values like Memphis

Texas because I'm concerned about the power grid

Anywhere that's prone to hurricanes or flooding, especially areas that are newly prone to hurricanes & flooding due to climate change

Anywhere with a disproportionate amount of violent crime. I looked into Minneapolis and while it seems cool, I can't get past the uptick in violent crime there.

I'm currently digging into the Columbus and Chattanooga markets. I'm from the Metro Detroit area and know it well but I just don't see the population growth there that I'd like to see. Where else should I look? I'm totally fine with this not being an absolutely incredible deal. I just want to get started with a profitable deal and recognize my first probably won't be my first profitable and I'm totally cool with that.

[Remington Lyman]

Originally posted by @Heidi Thompson:

I'm currently trying to figure out where I want to invest for my first out-of-state investment property. I know some things I definitely do and don't want and am curious if you have any markets you'd recommend for long-term buy & hold rentals. 

Things I'm looking for:

Population growth, diverse industries/job base (all the usual stuff that indicates long term growth)

I'm debating between single and multifamily but I'd love to find a market that has small multifamily properties in A or B (maybe C+) neighborhoods (some places I've looked at only have these in D class areas)

Cash flow but also some appreciation, can be moderate for both I'm not looking for anything crazy

A less expensive market than San Diego (the cost of entry here is nuts)

Things I want to avoid:

Markets that are all cash flow and no appreciation

Markets with very low average income and very low property values like Memphis

Texas because I'm concerned about the power grid

Anywhere that's prone to hurricanes or flooding, especially areas that are newly prone to hurricanes & flooding due to climate change

Anywhere with a disproportionate amount of violent crime. I looked into Minneapolis and while it seems cool, I can't get past the uptick in violent crime there.

I'm currently digging into the Columbus and Chattanooga markets. I'm from the Metro Detroit area and know it well but I just don't see the population growth there that I'd like to see. Where else should I look? I'm totally fine with this not being an absolutely incredible deal. I just want to get started with a profitable deal and recognize my first probably won't be my first profitable and I'm totally cool with that.

It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.