Where Should I Start

Question

Good evening Bigger Pockets People,

I am looking to Purchase a piece of Rental Real Estate in the Tri-State Area (Philly, South Jersey, Delaware). However, I am having issues finding a good area with good growth at a good price. Where Should I start from? The market is crazy right now.

Mike Paolucci · Answer

@Baahir StarkeyHave you thought about out of state investing? I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH. The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC. Happy to share my experiences. Good luck on your REI journey and property search!!

Remington Lyman · Answer

It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

Simon Ashbaugh · Answer

I understand you're looking for a good area with good growth at a good price in the Tri-State Area but if the numbers aren't making sense, it could be worth check out the market in the Midwest specifically in Ohio. Columbus generally has more affordable properties compared to the Tri-State Area. This could potentially mean a better deal for you and higher cash flow in the long run. Plus, Columbus is experiencing significant growth, which could lead to higher appreciation in the years to come. On the other hand, Cleveland offers significantly more affordable properties. This means you could potentially snag a better deal with higher cash flow. It benefits from strong rental demand, making it easier to find and retain tenants. Hope this helps!

Min Zhang · Answer

Columbus, Ohio is a great place to invest in rental properties because homes are affordable and lots of people are looking to rent. Big companies like JPMorgan Chase, Nationwide, Honda, L Brands, Huntington, and Amazon have many job openings here. In New Albany, there are big buildings where companies like Amazon, Google, and Meta (which owns Facebook) keep their computer servers, and they're planning to build even more.

Alfath Ahmed · Answer

Hey Baahir, Ohio is an awesome market to invest in. I just read a published article today by the Columbus Dispatch that Franklin County home values are supposed to rise by 30-35% with re-appraisal. We have had nearly a 39% property value gain from 2019 to 2022 in the Columbus market.

Eric Greenberg · Answer

That is a huge area with lots of different markets. If first figure out what your goals are then drill down from there. Its hard to believe something isnt in this area that will work for you and your goals.

Baahir Starkey · Answer

@Mike Paolucci thank you

Mackaylee Beach · Answer

I would focus on defining my goals first. Identify your essential "needs" and desired "wants." Understand your financial capacity to invest in a property and estimate your monthly expenses accurately.Kansas City is rapidly growing- lots of employment opportunities and housing demand. I'd be happy to further discuss our current market and available inventory.

Jimmy Lieu · Answer

Hi Baahir, I'd recommend that you also look into 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!

Sam McCormack · Answer

Hey Bahhir, if you want to talk more about somewhere to invest, shoot me a message and we can talk about what you are looking for in an investment property. I would like to say I can help shoot you in the right direction!