Help for a newbie who can't commit to a market

[Natalie C.]

Hi BP people!

I have market (analysis) paralysis.

I am interested in SFH or small multi-family residence rentals, looking for cash flow but of course would love some icing on the cake (appreciation). If things go well would consider scaling up in the future.

My husband and I own one cash flowing SFH in the Bay Area that was acquired in 2013 as a house-hack (but is currently rented by unicorn tenants who manage the property, so this property doesn't really count for rental experience).

The market where I am from is not great for rentals (SF Bay Area), and the market where we are living for the next couple of years is also not great for rentals at this time (Grand Forks, ND). I also do not love Grand Forks and would rather not put down any form of roots here - this is more of an emotional choice.

I have put in time learning about real estate - going through all the BP podcasts, lurking in the forums, doing due diligence learning about local job trends, populations, schools, etc in the more popular markets (e.g. certain midwestern cities). I am making my way through the books, including David Greene's new book, which was amazing. We have a good amount of capital - would be comfortable putting down $50-100k for the right few deals. We have w2 jobs. We are ready.

Each time I dive into a local market (e.g. Indianapolis) and get ready to reach out to local agents and investors, I get cold feet and shift into a new market, thinking that maybe one is better for me than another. Maybe I am casting too wide of a net.

Long distance investors: how did you finally commit to a market when you felt that you were equally unfamiliar with them all? Any tips to help me shift my thinking would be greatly appreciated.

Thank you!!

[Jay Hinrichs]

this is a wide open question.. if your buying basic cash flow all the markets were this happens are pretty much interchangable.. and it boils down to the team and the PM  the PM will make or break you investment .. just look at the Oceanpointe Morris threads.. 

that said.. then you can go a little deeper and and look for markets that are regentrifying..  this is what I do.

I am not worried about cash flow today I am more interested in appreciation down the line.. Being born and raised in the SF BAy AREA this strategy seems to have worked well for me.. 

but as you say SF is expensive.

Pretty much every city has a up and coming area were things are changing resturants bars etc.. were you have chance of up side while the properties will pay for themselves

In Indy

Fountain square  .. and BAtes Hendrix is coming on.

In Charleston SC

Inner West side and Park Circle..   think Boeing  Volvo  Mercedes and a faboulous place to visit we have done exceedingly well there.

then in the other cities  and in Indy  if you simply want to buy rentals buy at or close to the median so that most of the homes are going to homeowners.. this is why your bay area stuff is so good . 

all the cities have these in Indy it would be 110 to 130  See  Lance Robinson thread on his 2017 results going right now.

KC has great areas for these price points as well.... I like areas of Birmingham for stability as well. 

Just make sure you don't go for the low value assets those will be too risky.. 

And lastly don't like North Dakota  LOL.. quite a change from Bay Area.... Portland Oregon is great as well if you can find a deal on a small multi.. 0 vacancy high quality bay area type tenants