I’m looking to invest in my next market. What are ya’ll thoughts?

[Rob Bianco]

I’ve been investing in real estate primarily for cashflow and using those funds to snowball my efforts so I can reach financial independence and buy more property. I have built a sizable portfolio in Kansas City and after much thought I think it’s safe to say I should diversify and enter a new market.

I currently own a healthy mix of multi-family (2-4 units) in suburban areas and a couple single family. It’s a strategy that has worked well for me and my tenants have been mostly low maintenance. For anyone who might suggest I should scale into larger property, I have tried, but the properties tend to be older, heavy on maintenance, and few exist outside of city limits. I had to sell a 12 unit building in 2022, for a profit, but it cost me a relationship with my management team as there were several maintenance requests weekly that was just sucking up their time. The experience wasn’t great for me.

Anyway, I am stuck deciding between: Minneapolis, Indianapolis, Columbus

On paper, I think there’s a lot to like about all 3 markets like solid population growth, influx of jobs, low climate risk, and lower property prices. I am aware that Columbus probably will have the brightest future but as of today it seems to have the lowest immediate cash flow of the 3 options. Indy/Minny seem to offer cheaper property and a greater return right now.

I have been looking at property south of Minneapolis in Farmington, Apple Valley, Shakopee and seeing suitable options but can’t help but think Columbus’s growth will just outshine everyone else. Maybe in 10 years a house in Columbus will double in value while my “investment” in Minneapolis is up 15%

Anyway, maybe someone with more knowledge can share their valuable opinions