Choosing a Long Distance Market

[Miles Presha]

So....I'm gonna pull the trigger as soon as the HELOC will allow. Walking into a lot of equity from a sweet fixer deal in which I now live. I am binging on podcasts and books and getting educated.

I have a history as a mobile home investor having acquired 5 properties in the last year or so.  All have gone well, but I want to step it up to more of a multifamily thing.  I live in L.A. - so yoiu can see why I chose not to invest here.  With sop many good multifamily deals - apts. and Mobile home parks, I don't really know how to choose a market to focus on.  There are many.  Should I stay as close to Cali as possible?

In considering apartments, I would consider a 12 unit or smaller.  For MHP - 30 plus units, as it's slightly a different monster.  Question is - where to go? What do you guys think?

[Caleb Heimsoth]

Miles Presha if you’ve got substantial money to use as a downpayment or are doing a 1031 exchange then buying in the Raleigh or triangle area could be a good idea. If either of those things aren’t you, or your main goal isn’t appreciation/capital preservation I would look elsewhere. This market is extremely hot. Cash flow will be tough. As an example a friend of mine had his townhome appreciate 20 percent in one year.

If you want multifamily I would look at Cleveland or Little Rock. I’m also in Memphis but most multifamily there is rougher to manage (think 450 rents per unit). You can get larger multifamily in Cleveland at 28-35k per door.