Intro & how to find a neighborhood to invest in ?

Question

Hi everyone!  My first post on BP. First off, I want to thank everyone contributing to the forum. It's amazing to see everyone being so generous with their time, knowledge, and advice. I have been reading many of the threads and have already learned so much.

I am from NYC and looking to purchase units to rent out elsewhere in the country. I have looked at OH, Indianapolis, and a few of the other areas mentioned in the threads. If you were starting from scratch and have complete geographical flexibility, where would you start that has decent cash flow but at the same time, possibility for appreciation based on a growing economy? What is the best resource for me to do this research and crunch the numbers?

If anyone has strong recommendations in terms of neighborhoods, i am open to flying out there for a week or 2 to get a feel for the market there.

Thanks again!

LJ Li · Answer

Thanks everyone for reaching out as well as pointing out different neighborhoods. I have started my analysis on the areas mentioned.

@Larry Fried, Will look into Indianapolis and Jacksonville, Fl. Thx!

Account Closed Will check out Tampa. Plus i have friend there so would be a good excuse to visit . Thx!

@C. Timothy Murphy III Will do!

Mary K. · Answer

anyone try Grove City OH by Columbus? Good schools, older and new communities, new stores, 15 min drive to big downtown employers.  I was there a year and now looking in that market but appreciation is soaring.  I'm now in the Ocala/Citrus County area FL and can't find a $40k home in Inverness that would generate $850-1200- Michael Short can you show us the property you found?

LJ Li · Answer

@James Wise, your guide was amazing. I think for a newcomer like myself, it really breaks things down and is a great primer for the Cleveland area.  Hopefully, when i stop by your neck of the woods, I can buy you a meal to thank you.

LJ Li · Answer

@Andrew Johnson, Thanks! Let's forget about appreciation then since that is hard to predict. How do I get a list of the neighborhoods that have strong cash flow? :-)  . I read the Cleveland breakdown by James Wise which was terrific. Does such a document exist on other regions as well?

Account Closed · Answer

@LJ Li hello and welcome to BiggerPockets .. I hope you find this site as informative and exciting as I did/do .. There is so much information to learn .. when finding areas to invest in remotely one of the best things in my opinion to do it connect with local reia groups .. however most of them thnk their area is the best .. lol.. but, try to find a boots on the ground type of person that can look out for your best interests. When evaluating a neighborhood you really need to get eyes on it along with the stats .. talk to realtors and investors .. look up the local rental rates for 1,2,3 bedroom homes .. it takes a lot of time .. appreciation is just as important as cash flow in my opinion .. there are many city's still recouping from the bubble burst and are selling at values that are 50-75% under their true value of what they should be at . Thats why city's like Orlando, Tampa, Ocala, Miami, and Jacksonville are all on everyone's radar .. the appreciation is at 10-15% in some areas .. As you can see I really only have been keeping a eye on Florida ..thats were I live so.. anyway .. there's some smaller city's like Inverness,Fl where the rental market inventory is low and 3/2's can still be bought for as low as $40k with a average rental rate of $850-1250 a mth. and appreciation at around 12% .. thats just one example .. I hear Grad Rapids, Mi is experiencing the same thing although I have not looked into it myself .. I am however gearing up a new business that caters to out of state investors .. I am going to offer them the boots on the ground type of service .. I haven't worked out the fees yet but I am sure just like a good accountant saves you way more money than they cost, my business will be the same. If there is a property you need looked at in the Central Florida area please reach out , Im sure we can figure out compensation .. important thing is that you get a unbias opinion on it .. I can even provide a rehab estimate if it's not turn key ..

I wish you the very best .. you have some tough decisions to make ..

God Speed,

Michael Short

Account Closed · Answer

@LJ Li if you're interested in Austin this guide may help you: https://www.biggerpockets.com/blogs/8592/61981-ult...

I'm flipping currently in Cincinnati, and I would recommend anything neighborhood on the East Side

Robert Ellis · Answer

It's rare to find a grove city house for less than 50k. they for sure exist but you have to watch the market like a hawk. they tend to be ranches and very small and older. great place to invest though. you should look at multifamily there too. sold 4 units last year for 190k in grove city that brought those same rents per unit.

James Wise · Answer

Thank you, much appreciated.

FYI I do love me some hot wings!

Timothy Murphy III · Answer

@LJ Li

Welcome to BP. Let us know if you're coming to check out the Cleveland area.

Intro & how to find a neighborhood to invest in ?

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