Member from San Diego Looking for Investment Property

[Genevieve Koesling]

I'm looking for for advice on investment properties. Where and how? 

[Mike D'Arrigo]

Hi @Genevieve Koesling 

I'm from CA also so I understand why you're looking out of state for cash flow. There's some great cash flow markets but you have to be real careful and do your homework. Here's my 2 cents on what you're looking at. I'm waving the caution flag on Houston right now because of the fall in oil prices. Houston is a very oil dependant economy and their companies are starting to have some major lay offs due to oil prices. 40% of all new jobs created since 2010 in Houston were energy related. Austin is not energy dependent and has a booming economy but with that comes high real estate prices and low returns. I think Las Vegas and Phoenix have been well played out and prices driven up. The time to have gotten in there was 3 or 4 years ago. Out of all of the markets you listed, I like Indianapolis the most. Indy is a great cash flow market with very affordable prices and a strong economy. I would also add Kansas City, MO to your list. Like @Nicholas Kral , I would avoid multifamily in those markets though. They tend to be older and in rougher areas. I generally recommend that beginning investors avoid them until the have some experience under their belts. I'd be happy to share my experience on that. I've written a couple of reports on how to choose a market and how to invest out of state that I can share with you if you'd like. I've also done podcasts on both the Indianapolis and Kansas City markets if you're interested.

Best wishes and let me know if I can help.

Mike