Best areas to invest in starting out?

Question

Hey guys! I'm looking to start investing in real estate and would love your insight! If you can answer the following questions below that'd be great:

- What are the best cities/states to invest in starting?

- Do you guys think interest rates will play a huge factor in the upcoming housing market?

- What is a recommended starting budget for someone new to investing? Do you recommend having additional savings in the bank, if so, how much?

Min Zhang · Answer

Hello Hnu,Starting in the Midwest can be a smart choice, as the entry point is often lower and there are many opportunities for cashflow. One city that stands out in this region is Columbus, Ohio. This city has experienced significant growth in recent years, fueled in part by the presence of tech giants like Intel, Meta, Amazon, and Google who have invested billions of dollars in the area. This has led to an increase in property prices and a growing population seeking employment opportunities. In addition to Columbus, other cities worth considering in the Midwest include Cleveland and Dayton. Both have their own unique advantages and can offer great potential for real estate investing. It's important to do your due diligence and research the local market, as well as establishing a strong network of professionals to support your investments. Ultimately, the best deals are the ones that align with your investment goals and provide a good balance of cashflow and potential for long-term growth. With the right approach and a solid understanding of the market, you can find great opportunities for success in the Midwest and beyond. I can share with you some insights about these markets. Let me know how I can help!

Shawn Parsh · Answer

Hnu, Congratulations on your plan to become an investor, make sure it doesn't just stay a plan. Take Action. I agree with Timur, I would recommend you start investing in your local market. In my opinion things get more complicated if you try to invest from a distance when you are first starting out. A house hack or duplex to fourplex are solid plans as well, but I will add another one to consider. I would also look into lease options. In particular I like to find cosmetically distressed properties that I can get at a steep discount. I then rehab the property and finance it or sell it. A lot depends on your particular situation. I prefer to find distressed properties, rehab them and then rent them out for positive cash flow. However, if you need the money you can always fix it and flip it. You can then use the profit to invest in your next property with more options. Good luck. Let me know if I can be of assistance.

David Avery · Answer

Invest where you live is best.Get a great Agent Get a great Contractor Get a Mentor to make it happen Phoenix area doubles in value every 4 years.

Nadeem Alamgir · Answer

Hey Hnu, the mid-market is pretty hot and affordable. Check out Zillow hottest housing market of 2024: https://www.axios.com/2024/01/10/zillow-ranking-hottest-real… Cleveland is a great market to focus on for cash flow. It is landlord-friendly, and specific pockets have gone upwards of 2-4x in the last 5-10 years.

Timur Salikov · Answer

1. Your own backyard 99% is best.2. It shouldn't, just find a good deal that makes money with the rate you get. Especially if you are investing for the long term, 20-30 years. 3. You can start out with a house hack. Get a duplex with FHA 3% down or a big house and rent out the other bedrooms. Whatever you do, don't start out investing in the "ghetto" and buying cheap.

Alfath Ahmed · Answer

Hey Hnu, glad that you are getting started in investing. Always smart to get started early. Columbus has been a major tech hub and many out-of-states investors like yourself are investing here for the cashflow and appreciation. I think interest rates will go down slightly this year but the market will continue to trend upwards. You starting budget will depend on your risk tolerance. I think you should buy something for $150k like a turnkey SFH that is worth $180-$190k. You can only do this if the deal is off-market. To answer your last question, I have a good sized portfolio so I keep about $100k in a bank to mitigate any risk. For you, I say keep $20k in a bank for your 1st property. This is way you are covered for anything wrong that could potentially happen. Goodluck!

John McDonald · Answer

Texas has a lot of great investment opportunities across the board and they're landlord friendly. But we see opportunity in nearly every market, you just have to know how to find it. However, as others have mentioned, that might not made sense for you if you're planning to just purchase a single SFR or start flipping. Then, you're likely better to stay as close to home as possible until you get your feet wet. Good luck.

Joe Funari · Answer

@Hnu Thaper I recommend Texas. Has the most landlord friendly laws in the US. Eviction rates are less than 1% and process is very quick. I specifically recommend investing in the Dallas/Ft. Worth area. This where I invest. Strong employment market and low inventory of rentals ensure demand is always strong. I also specialize in helping other investors buy and sell here. So happy to help you with your search here in the area. My real estate investing contacts become your contacts too. So no need to reinvent the wheel either. Let me know if you need any additional info.

Hnu Thaper · Answer

@Nadeem Alamgir thank you for your reply man, appreciate it!

Hnu Thaper · Answer

Appreciate it Timur, thank you!