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Updated 18 days ago,
What type of market should I start in?
I am 19 yr old and am currently trying to find my first rental property and I am very eager to get started. I have to choose between a much cheaper market that I live in that is much easier to cash flow, but finding good renters could be more difficult. Or do I look into a market like Las Cruces, NM, or Lubbock, TX, as an example of bigger markets I have looked at and am somewhat familiar with? The problem is these bigger markets are almost impossible to cash flow and to make them cash flow; I would need to have very favorable seller financing terms or a lot more money. I can make the down payments in the smaller market on cash-flowing deals, but these bigger markets require 40-70k to make a deal the conventional way, and I just don't have that to invest. I have around 20-30k that I can let go of semi-comfortably and that can be enough in the small market. The small markets won't appreciate much but cash flow well.
I'm not against house hacking in the bigger markets either, but my hometown market seems very profitable cash flow-wise. Should I do these 100-200k deals and just start now or should I save up more money and wait and try to make bigger multifamily deals in these bigger markets later on?