Seeking Investment Advice: Best States to Invest in Right Now!

[G Nijjer]

Greetings, fellow property enthusiasts!

I'm currently in the process of narrowing down my options for real estate investment, and I could really use your expertise and insights. After careful research, I've shortlisted a few states that seem to be promising contenders for my investment journey. However, I'm at a crossroads and would greatly appreciate your thoughts on which state might offer the best opportunities.

Here are the states I'm considering:

1. Texas 🌵
2. Florida ☀️
3. Arizona 🌅
4. North Carolina 🌳
5. Tennessee 🎸

Each state has its own unique charm and potential for growth, but I'm looking for that extra bit of guidance to help me make an informed decision. Have you had any experience investing in any of these states? What trends are you noticing in terms of property values, rental demand, or economic development?

Whether you're a seasoned real estate investor or just someone who loves to keep an eye on the market, your insights could make a significant impact on my investment journey. Feel free to share your thoughts, anecdotes, or any relevant data that could guide me in the right direction.

Thank you in advance for your valuable input!

[Jeffrey Daniels]

Greetings @G Nijjer! Welcome to bp! I like this list - you may want to distill each state to a specific city that you like, and then figure any budget considerations. I'm bullish on Arizona, still I meet many people that get themselves very interested in Phoenix, AZ only to later realize what getting into our market at lower prices under $250,000 looks like and then turn their search elsewhere. Last December, The National Association of REALTORS® published 10 Housing Markets Expected to Lead the Nation in 2023 - that includes regions from 4 of the states you like. Getting a midyear update on their forecast may help to guide you. I'll be interested to see their report for 2024! I'm excited to hear about your progress!

[G Nijjer]

Quote from @Jeffrey Daniels:

Greetings @G Nijjer! Welcome to bp! I like this list - you may want to distill each state to a specific city that you like, and then figure any budget considerations. I'm bullish on Arizona, still I meet many people that get themselves very interested in Phoenix, AZ only to later realize what getting into our market at lower prices under $250,000 looks like and then turn their search elsewhere. Last December, The National Association of REALTORS® published 10 Housing Markets Expected to Lead the Nation in 2023 - that includes listings from 4 of the states you like. Getting a midyear update on their forecast may help to guide you. I'll be interested to see their report for 2024! I'm excited to hear about your progress!

I was thinking about these cities
Phoenix (AZ)
Austin (TX)
Charlotte (NC)
Orlando (FL)
any opinion ?

[Tim Ryan]

The first piece of advice I will give you is that your list needs to be cities and not states.  It's impossible to narrow down to an entire state. Secondly, pick one market, go there often, buy brokers and agents lunch and coffee, get to know the locals.  Then you'll start seeing serious results.  I've been doing it this way since 2009.

[G Nijjer]

Quote from @Tim Ryan:

The first piece of advice I will give you is that your list needs to be cities and not states.  It's impossible to narrow down to an entire state. Secondly, pick one market, go there often, buy brokers and agents lunch and coffee, get to know the locals.  Then you'll start seeing serious results.  I've been doing it this way since 2009.

 I was thinking about these cities
Phoenix (AZ)

Austin (TX)

Charlotte (NC)
Orlando (FL)

any opinion ?

[Scott E.]

You have selected what are pretty widely accepted to be some of the most overvalued markets in the country right now...

[Jeffrey Daniels]

Quote from @G Nijjer:

Quote from @Jeffrey Daniels:

Greetings @G Nijjer! Welcome to bp! I like this list - you may want to distill each state to a specific city that you like, and then figure any budget considerations. I'm bullish on Arizona, still I meet many people that get themselves very interested in Phoenix, AZ only to later realize what getting into our market at lower prices under $250,000 looks like and then turn their search elsewhere. Last December, The National Association of REALTORS® published 10 Housing Markets Expected to Lead the Nation in 2023 - that includes listings from 4 of the states you like. Getting a midyear update on their forecast may help to guide you. I'll be interested to see their report for 2024! I'm excited to hear about your progress!

I was thinking about these cities
Phoenix (AZ)
Austin (TX)
Charlotte (NC)
Orlando (FL)
any opinion ?

I do live and specialize in Phoenix, so I am biased 😉

But also, on a webinar right now with a local housing economist that just went over this slide.

While other states may be seeing strong job growth, I would argue that nowhere else is the majority of their growth concentrated within a single metropolitan area like we are seeing in Phoenix: 

[G Nijjer]

Quote from @Scott E.:

You have selected what are pretty widely accepted to be some of the most overvalued markets in the country right now...

Do you have any recommendations that I can look into?

[G Nijjer]

Quote from @Jeffrey Daniels:

Quote from @G Nijjer:

Quote from @Jeffrey Daniels:

Greetings @G Nijjer! Welcome to bp! I like this list - you may want to distill each state to a specific city that you like, and then figure any budget considerations. I'm bullish on Arizona, still I meet many people that get themselves very interested in Phoenix, AZ only to later realize what getting into our market at lower prices under $250,000 looks like and then turn their search elsewhere. Last December, The National Association of REALTORS® published 10 Housing Markets Expected to Lead the Nation in 2023 - that includes listings from 4 of the states you like. Getting a midyear update on their forecast may help to guide you. I'll be interested to see their report for 2024! I'm excited to hear about your progress!

I was thinking about these cities
Phoenix (AZ)
Austin (TX)
Charlotte (NC)
Orlando (FL)
any opinion ?

I do live and specialize in Phoenix, so I am biased 😉

But also, on a webinar right now with a local housing economist that just went over this slide.

While other states may be seeing strong job growth, I would argue that nowhere else is the majority of their growth concentrated within a single metropolitan area like we are seeing in Phoenix: 

Thank you i definitely look into Arizona

[Adrienne Green]

@G Nijjer What kind of investing are you looking to do?  Buy and hold, fix and flip, long term rental, short term rental, etc. What's your hold time and your ideal price point?  Are you more interested in cashflow, appreciation, or a blend?  All of that goes into which market is the best for you.

I'm not seeing the appeal of the specific cities you're looking at, with maybe the exception of Phoenix.  They rest are pretty played out at this point.  While of course you can succeed in real estate in any market, they're all ones with less meat on the bone at this point.

You didn't highlight which market you're eyeing in TN.  Memphis, Knoxville, and Chattanooga are all doing well for investors right now.  I can speak to Chattanooga, which offers a blend of appreciation and cashflow.  It has approachable price points, and the rents versus purchase prices allow long term rentals to do well.  Tourism is also a top industry, so short term rentals are a notable niche here as well.  

[Scott Trench]

Personally, I'm not bullish on these parts of the country in the next few years. Florida is nearly uninsurable. Tons of development/investment activity going on. Same with Phoenix, and here in Denver. 

Sure, there's inbound migration to the cities and states you are referencing, but there's also a glut of supply coming online. And, that inbound migration, I'd bet, is about to slow big time when we look at 2023 data and trends. Texas people have their #Don'tMesswithTexas thing and will beat me up, but it's pretty dang hot, property taxes are extremely high, there's a TON of construction/development bringing on new supply, and frankly the politics are at a point where some residents are leaving, and others may refuse to move there. I wonder if folks are too high on the "business friendly" dynamic in the state, and the net inbound migration in the recent past, and are overweighting those benefits, without really factoring in the risks of investing in parts of that state. Similar concerns in Florida right now. So I'm going to go ahead and #MesswithTexas. I think Texas real estate is among the most likely in the country to underperform from a returns perspective over the next few years. I dislike Tennessee and North Carolina less, but wonder if they won't have more muted risks a step removed from those brewing in Texas and Florida.

Nearly all of the 1.6M units under construction are in the south and west (sunbelt and SE). Huge percentages of that are in Florida and Texas specifically.

Honestly, I like "boring" towns in the Northeast, midwest, and maybe even Southern California for the next few years. 

Why SoCal in that list? Because California has been beaten up so badly by mismangement at the governmental level. I'd argue it has the same but opposite political problems as Texas, but that the exodus already happened there and is priced in. It's still the best weather in the country (world?), and eventually, someone will clean up the streets and bring back some sanity. Even if that political miracle doesn't happen, nobody is assuming huge growth in SoCal, like they are in other parts of the country. Furthermore, SoCal, relatively speaking, isn't THAT much more expensive these days than other parts of the country that have shot up in recent years. Even if the prospects aren't great, SoCal doesn't have a the same runup in prices that other places that are, frankly, less desirable, did over the past few years. 

All that to defend a minor point on SoCal - I'm probably still preferring the midwest and Northeast to SoCal. But, just know that some people will think I'm crazy for even typing out the idea that SoCal might be an OK investment in 2023. I personally don't think it's crazy, and would rather be there than in Austin, TX right now.

Not a lot of new supply, relatively speaking in the NE, Midwest, and SoCal. Not a lot of migration, and many of these places didn't boom like the rest of the country over the last few years. 

Millennials, I bet, are going to be moving back to where they grew up to settle down and raise families. I bet these places are lower risk and higher upside than other parts of the country.  

[Andrea Lane]

The cities you are looking at are already at the top.  Why don't you research the sales outside the city limits and see if there is a better opportunity there?  We are located in the Pittsburgh market I do have properties in many states including Jacksonville, Florida and my next location will be Houston, Texas (actually cities within 50 miles of Houston).

No matter what city you choose, having a good relationship with someone with boots on the ground, who understands not just the market but the little secrets each market holds is probably your most important resource.  Each area has its own good and bad points and you want someone who understands the area to share the information with you.  

If you do not live in the market area, take the time to network with agents, property managers, contractors, and real estate investors who do work in the area online.  Then take a trip and meet them in person, take them for lunch or a cup of coffee.  That is how I move to different areas of the country.

Feel free to reach out if you have any questions. 

[Peter Mckernan]

Quote from @Scott Trench:

Personally, I'm not bullish on these parts of the country in the next few years. Florida is nearly uninsurable. Tons of development/investment activity going on. Same with Phoenix, and here in Denver. 

Sure, there's inbound migration to the cities and states you are referencing, but there's also a glut of supply coming online. And, that inbound migration, I'd bet, is about to slow big time when we look at 2023 data and trends. Texas people have their #Don'tMesswithTexas thing and will beat me up, but it's pretty dang hot, property taxes are extremely high, there's a TON of construction/development bringing on new supply, and frankly the politics are at a point where some residents are leaving, and others may refuse to move there. I wonder if folks are too high on the "business friendly" dynamic in the state, and the net inbound migration in the recent past, and are overweighting those benefits, without really factoring in the risks of investing in parts of that state. Similar concerns in Florida right now. So I'm going to go ahead and #MesswithTexas. I think Texas real estate is among the most likely in the country to underperform from a returns perspective over the next few years. I dislike Tennessee and North Carolina less, but wonder if they won't have more muted risks a step removed from those brewing in Texas and Florida.

Nearly all of the 1.6M units under construction are in the south and west (sunbelt and SE). Huge percentages of that are in Florida and Texas specifically.

Honestly, I like "boring" towns in the Northeast, midwest, and maybe even Southern California for the next few years. 

Why SoCal in that list? Because California has been beaten up so badly by mismangement at the governmental level. I'd argue it has the same but opposite political problems as Texas, but that the exodus already happened there and is priced in. It's still the best weather in the country (world?), and eventually, someone will clean up the streets and bring back some sanity. Even if that political miracle doesn't happen, nobody is assuming huge growth in SoCal, like they are in other parts of the country. Furthermore, SoCal, relatively speaking, isn't THAT much more expensive these days than other parts of the country that have shot up in recent years. Even if the prospects aren't great, SoCal doesn't have a the same runup in prices that other places that are, frankly, less desirable, did over the past few years. 

All that to defend a minor point on SoCal - I'm probably still preferring the midwest and Northeast to SoCal. But, just know that some people will think I'm crazy for even typing out the idea that SoCal might be an OK investment in 2023. I personally don't think it's crazy, and would rather be there than in Austin, TX right now.

Not a lot of new supply, relatively speaking in the NE, Midwest, and SoCal. Not a lot of migration, and many of these places didn't boom like the rest of the country over the last few years. 

Millennials, I bet, are going to be moving back to where they grew up to settle down and raise families. I bet these places are lower risk and higher upside than other parts of the country.  

 I would like to add one thing about the SoCal market, there are people that have recently reached back out after moving to other states and they are putting their homes up for sale to come back to this SoCal market. I know that there is back and forth on which state is better for investing, and politics, but it is surprising to see a lot of people coming back to this state after making a large move (family and all) to another state. 

I think there was a big push to leave and I agree with Scott on someone coming in and cleaning up what has been changed for the worse, and now push the scales back in the favor of better streets and all! 

[Nathan Gesner]

Look for Dave Meyers in the BiggerPockets blogs or on their YouTube channel. He's the number cruncher for BiggerPockets and regularly talks about the hottest markets to invest, with data to back up his recommendations.

[Jimmy Bostic]

@G Nijjer I think you should consider throwing Ohio on there. Columbus and Cleveland markets are contenders that shouldn't be overlooked!

[Dan Portka]

Quote from @Scott Trench:

Personally, I'm not bullish on these parts of the country in the next few years. Florida is nearly uninsurable. Tons of development/investment activity going on. Same with Phoenix, and here in Denver. 

Sure, there's inbound migration to the cities and states you are referencing, but there's also a glut of supply coming online. And, that inbound migration, I'd bet, is about to slow big time when we look at 2023 data and trends. Texas people have their #Don'tMesswithTexas thing and will beat me up, but it's pretty dang hot, property taxes are extremely high, there's a TON of construction/development bringing on new supply, and frankly the politics are at a point where some residents are leaving, and others may refuse to move there. I wonder if folks are too high on the "business friendly" dynamic in the state, and the net inbound migration in the recent past, and are overweighting those benefits, without really factoring in the risks of investing in parts of that state. Similar concerns in Florida right now. So I'm going to go ahead and #MesswithTexas. I think Texas real estate is among the most likely in the country to underperform from a returns perspective over the next few years. I dislike Tennessee and North Carolina less, but wonder if they won't have more muted risks a step removed from those brewing in Texas and Florida.

Nearly all of the 1.6M units under construction are in the south and west (sunbelt and SE). Huge percentages of that are in Florida and Texas specifically.

Honestly, I like "boring" towns in the Northeast, midwest, and maybe even Southern California for the next few years. 

Why SoCal in that list? Because California has been beaten up so badly by mismangement at the governmental level. I'd argue it has the same but opposite political problems as Texas, but that the exodus already happened there and is priced in. It's still the best weather in the country (world?), and eventually, someone will clean up the streets and bring back some sanity. Even if that political miracle doesn't happen, nobody is assuming huge growth in SoCal, like they are in other parts of the country. Furthermore, SoCal, relatively speaking, isn't THAT much more expensive these days than other parts of the country that have shot up in recent years. Even if the prospects aren't great, SoCal doesn't have a the same runup in prices that other places that are, frankly, less desirable, did over the past few years. 

All that to defend a minor point on SoCal - I'm probably still preferring the midwest and Northeast to SoCal. But, just know that some people will think I'm crazy for even typing out the idea that SoCal might be an OK investment in 2023. I personally don't think it's crazy, and would rather be there than in Austin, TX right now.

Not a lot of new supply, relatively speaking in the NE, Midwest, and SoCal. Not a lot of migration, and many of these places didn't boom like the rest of the country over the last few years. 

Millennials, I bet, are going to be moving back to where they grew up to settle down and raise families. I bet these places are lower risk and higher upside than other parts of the country.  

 Man, I sure hope this is the start of sentiment change for all of the CA hate I see on here. I personally have shifted from an out of state investing approach to investing in my backyard here in LA. CA (especially socal) would likely be on the list of "least risky" markets to invest in for a number of reasons - one of the largest economies in the WORLD, great weather, many that wanted to leave have already left, many actively speaking up on how poorly run the state is which should eventually fuel change for the better, many COVID restrictions are behind us, etc. Sure some people are priced out of socal due to crazy home values, but house hacking a duplex in CA can be extremely profitable if done right and you can buy with as little as 3.5% down.

[Greg Parker]

Alabama has the second lowest property taxes in the nation behind Hawaii.

In a number crunch of 300 cities using 10 metrics ranging from home prices to tax rates to vacancy levels, WalletHub determined that Montgomery, Alabama, was the nation’s most affordable city for homebuyers. Rounding out the top 10 of affordable homeownership cities were Flint, Michigan; Toledo, Ohio; Detroit; Akron, Ohio; Warren, Michigan; Pittsburgh; Yuma, Arizona; Springfield, Illinois; and Palm Bay, Florida.

[Cole Schlack]

Ive been selling my investment in 7 states to invest in Hawaii County(the Big Island)  The best weather in the US, low crime, Investments from $10,000 to $10,000,000.  Lack of supply(very little construction even during the boom, strong demand even in downturns. Low property taxes(my AG parcels are $200 per year).  Many investment options- interesting Note- We do not have a single self service carwash on the island, the only drive-thur option closes at 5 pm!!  

[Travis Biziorek]

Hey G, I would HIGHLY recommend adding Michigan to your list. Specifically, take a hard look at Detroit.

It's still flying under the radar right now, largely because people dismiss it due to entrenched negative perceptions that no longer hold true. They also gloss over it because of the population trend. But they go nuts for Cleveland that's been on a similar population trajectory ;-)

The reality is Detroit is undergoing a major revitalization that's been happening for years now. People are slowly catching on but it's still very early days for the city's comeback.

[Michael Smythe]

Some counters on each of your targets:

Texas - how many days in a row over a 100 degrees? Potential water supply issues if tempos keep going higher?

Florida - low lying areas already seeing issues with rising sea levels. Why do you think so many insurance companies are no longer doing business in the state? The next hurricane will set a record for damages.

Arizona - even hotter, with less water than TX

North Carolina - probably best bet to be most stable

Tennessee - in tornado alley and tornados becoming more frequent.

[Anthony L Amos Jr]

Quote from @G Nijjer:

Greetings, fellow property enthusiasts!

I'm currently in the process of narrowing down my options for real estate investment, and I could really use your expertise and insights. After careful research, I've shortlisted a few states that seem to be promising contenders for my investment journey. However, I'm at a crossroads and would greatly appreciate your thoughts on which state might offer the best opportunities.

Here are the states I'm considering:

1. Texas 🌵
2. Florida ☀️
3. Arizona 🌅
4. North Carolina 🌳
5. Tennessee 🎸

Each state has its own unique charm and potential for growth, but I'm looking for that extra bit of guidance to help me make an informed decision. Have you had any experience investing in any of these states? What trends are you noticing in terms of property values, rental demand, or economic development?

Whether you're a seasoned real estate investor or just someone who loves to keep an eye on the market, your insights could make a significant impact on my investment journey. Feel free to share your thoughts, anecdotes, or any relevant data that could guide me in the right direction.

Thank you in advance for your valuable input!

 Every state mentioned except NC does not have state income tax. Focus on those. 

[Jimmy Lieu]

Quote from @G Nijjer:

Greetings, fellow property enthusiasts!

I'm currently in the process of narrowing down my options for real estate investment, and I could really use your expertise and insights. After careful research, I've shortlisted a few states that seem to be promising contenders for my investment journey. However, I'm at a crossroads and would greatly appreciate your thoughts on which state might offer the best opportunities.

Here are the states I'm considering:

1. Texas 🌵
2. Florida ☀️
3. Arizona 🌅
4. North Carolina 🌳
5. Tennessee 🎸

Each state has its own unique charm and potential for growth, but I'm looking for that extra bit of guidance to help me make an informed decision. Have you had any experience investing in any of these states? What trends are you noticing in terms of property values, rental demand, or economic development?

Whether you're a seasoned real estate investor or just someone who loves to keep an eye on the market, your insights could make a significant impact on my investment journey. Feel free to share your thoughts, anecdotes, or any relevant data that could guide me in the right direction.

Thank you in advance for your valuable input!

Hi G, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

[Jon Sukarangsan]

@Scott Trench @Peter Mckernan

Wondering if you have any details or background on the govt changes that are putting socal back on the map for you? Assuming you’re talking about Inland Empire and cheaper areas in Orange County?

I have been sensing this as well but not seeing much talk about it until recently 
 

[Lindsay Davis]

Seconding what @Tim Ryan is saying: You should evaluate markets on a city-by-city—or even a neighborhood-by-neighborhood basis—to get context at the level of granularity you need.

For example, Tennessee’s markets are far from monolithic. Nashville real estate is going to be significantly more expensive than cities in southeastern Tennessee (e.g. Chattanooga), even though they’re only 150 miles apart.

Because property values and rental demand vary so widely between cities and even zip codes, it’s best to start out with a list of what you’re after (neighborhood quality, purchase price, target yield, appreciation potential, etc.) and then zoom in as closely as you can into each area to see if they fit your criteria.

[Justin Buswell]

Quote from @Peter Mckernan:

Quote from @Scott Trench:

Personally, I'm not bullish on these parts of the country in the next few years. Florida is nearly uninsurable. Tons of development/investment activity going on. Same with Phoenix, and here in Denver. 

Sure, there's inbound migration to the cities and states you are referencing, but there's also a glut of supply coming online. And, that inbound migration, I'd bet, is about to slow big time when we look at 2023 data and trends. Texas people have their #Don'tMesswithTexas thing and will beat me up, but it's pretty dang hot, property taxes are extremely high, there's a TON of construction/development bringing on new supply, and frankly the politics are at a point where some residents are leaving, and others may refuse to move there. I wonder if folks are too high on the "business friendly" dynamic in the state, and the net inbound migration in the recent past, and are overweighting those benefits, without really factoring in the risks of investing in parts of that state. Similar concerns in Florida right now. So I'm going to go ahead and #MesswithTexas. I think Texas real estate is among the most likely in the country to underperform from a returns perspective over the next few years. I dislike Tennessee and North Carolina less, but wonder if they won't have more muted risks a step removed from those brewing in Texas and Florida.

Nearly all of the 1.6M units under construction are in the south and west (sunbelt and SE). Huge percentages of that are in Florida and Texas specifically.

Honestly, I like "boring" towns in the Northeast, midwest, and maybe even Southern California for the next few years. 

Why SoCal in that list? Because California has been beaten up so badly by mismangement at the governmental level. I'd argue it has the same but opposite political problems as Texas, but that the exodus already happened there and is priced in. It's still the best weather in the country (world?), and eventually, someone will clean up the streets and bring back some sanity. Even if that political miracle doesn't happen, nobody is assuming huge growth in SoCal, like they are in other parts of the country. Furthermore, SoCal, relatively speaking, isn't THAT much more expensive these days than other parts of the country that have shot up in recent years. Even if the prospects aren't great, SoCal doesn't have a the same runup in prices that other places that are, frankly, less desirable, did over the past few years. 

All that to defend a minor point on SoCal - I'm probably still preferring the midwest and Northeast to SoCal. But, just know that some people will think I'm crazy for even typing out the idea that SoCal might be an OK investment in 2023. I personally don't think it's crazy, and would rather be there than in Austin, TX right now.

Not a lot of new supply, relatively speaking in the NE, Midwest, and SoCal. Not a lot of migration, and many of these places didn't boom like the rest of the country over the last few years. 

Millennials, I bet, are going to be moving back to where they grew up to settle down and raise families. I bet these places are lower risk and higher upside than other parts of the country.  

 I would like to add one thing about the SoCal market, there are people that have recently reached back out after moving to other states and they are putting their homes up for sale to come back to this SoCal market. I know that there is back and forth on which state is better for investing, and politics, but it is surprising to see a lot of people coming back to this state after making a large move (family and all) to another state. 

I think there was a big push to leave and I agree with Scott on someone coming in and cleaning up what has been changed for the worse, and now push the scales back in the favor of better streets and all! 

 CA Sucks.  Move to TX take some friends!   

Honestly, I could not be happier when I hear people are leaving S Ca.  Sadly many do come right back.  Hard to tell from the media but appears to me Tx is now enjoying all the issues Ca has had for years.  When you have 10% of the population of the country you will easily have %15 of the problems.

As far as places to invest go everyone has an opinion.  I do like the Bigger Pockets Podcasts mentioned above.  They are data-driven to at least some extent.