Need help determining where to get my first rental property

[Ahmad N.]

Hi everyone, this is my first post here :) .. Recently I've developed an interest in rental property investment and am trying to figure out what resources/factors to consider when determining where in the US to get it. Since the purpose would be to put it up for rent, the obvious goal is to target a city where rent/price ratio is high (or price/rent ratio is low). But there are other factors, such as choosing a city where rental laws are favorable for tenants, there's a decent amount of population (to make sure there would be renters), the economy is good and chances of rent and property value appreciation over the coming years is high.

My question is what other factors should I consider ? And what's the best way to determine what such cities are that I should be short listing ?

My budget isn't that high (maybe about 250k), and I'd prefer to simply buy the property via cash instead of having a mortgage, so I'd be more interested in cities where median house prices are below 250k.

I'm looking at Dallas, TX and it's surrounding area, but I'm also wondering what other cities in the US I should consider. I'm myself based in Seattle, WA, but sadly the market here is way too $$$ for me :)

[Matthew Morrow]

Hello and welcome to rental property investment! The factors you mentioned are very important- but In addition to these, consider the demand for rentals near universities, hospitals, or major employers, and look into areas with future development plans that might boost property values. Be mindful of variations in property taxes and insurance, which can significantly affect your profits. The safety and appeal of the neighborhood are crucial too, as they impact tenant attraction and retention. If you're investing out-of-state, think about the availability and cost of property management services. Look for cities with diversified economies to mitigate risks during economic downturns.

With your budget and interest around Allentown PA, Syracuse, Philly, Cleveland, Omaha, might also be worth considering. They offer a mix of affordability and strong rental markets. 

The right investment will depend on your goals, risk tolerance, and management approach. Deep research, possibly visiting the areas, and talking to local real estate experts will guide you towards a wise decision. Remember, it's about finding the right property in a market that will consistently attract and keep tenants.

If you need help with this, just let me know. We operate a team out of eastern PA and our goal is to use our system to train / mentor investors and connect them with agents in markets meeting their critera for deals. We operate as the hub to ensure everyone has a good experience and gets the info and training they need.

Good luck!