Newbie - what cities do you invest in?

Question

Hello all, I'm a newbie and will start investing in the next 12 months. What cities are you guys investing in and why? Thank you, Hang

Matthew Kwan · Answer

HI Hang, it depends what are you targetting. Do you value more on cash flow or appreciation or both? Are you preapproved? Sometimes lender only approves the loan amount on what the borrower wants. As you should always be aware what your max borrowing and purchasing power (depending how much down payment you are putting) Typically, lenders will lend up to 45%-50% of your gross active income. The actives incomes could be rentals, W2, business income, stock dividends, and more.

@Albert Bui @Carlos Valencia

Jamiel Strickland · Answer

Hey @Hang Chan,I invest in Detroit and Metro Detroit. I am from here so I really know this market like the back of my hand. I go to meet ups, networked with other investors, and researched areas all throughout Detroit so its easy for me to understand what I am getting myself into investing here. What you focus on you find. I invest in Detroit because I know it. It took me years to learn the ins and outs but now I know. The same will go for you once you lock in on a specific area.

Travis Biziorek · Answer

Hi Hang, man see your location brings back memories!

I went to SMC and the year after I graduated I rented an apartment above a family's garage for a year. Such a great area!

I'm now in the Central Coast but invest in Detroit. It's been fantastic for me and my family.

Happy to talk about the market there and discuss how I may be helpful getting started. Feel free to shoot me a direct message if you want to chat.

Michael Smythe · Answer

@Hang Chan

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

Our analysis is a template you can follow for any city. Doubt you'll find this much info for any other market in the US. So, why would you invest remotely anywhere else?

Nader Shariff · Answer

It really depends on what you are looking to do.

However right now my team and I are focusing on Detroit, Michigan for the simple reasons of - low entry price point, strong returns, and the city has a lot of room for growth. There has been a lot of change in Detroit since I've started and it seems as though those changes will hopefully continue.

So, I'll throw my vote in for Detroit, Michigan if you are looking for buy and holds.

Yiwei Cheng · Answer

Hi Hang, what are your goals with real estate investing? There are so many different strategies, and being clear on what your goals are will help dictate strategy and location.

Abbey Humphreys · Answer

Hey, Hang. Welcome to the community. Are you looking to invest OOS or are you looking to buy property in an area and then move there? Also, where you intend to invest can depend heavily on what exactly you REI goals are.

As far as STR, areas that are popular with tourists/vacationers are always a good move. For something more MTR/LTR, cities like Austin, Savannah, Phoenix, Atlanta, etc, are great markets. Student-heavy cities/towns are usually a safe bet as long as you have the time (or a good PM).

Delwyn A. · Answer

I don't necessarily look at cities as much as I do regions, and I feel like the south east as a whole is a great market regardless of city. Do you own research before going into any area, but the south east is typically less expensive and is seeing the most growth.

Newbie - what cities do you invest in?

Newbie - what cities do you invest in?

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