If you can relocate anywhere in the US to invest, where is best ?

Question

I am going to go all in and be willing to move anywhere in the US to invest in rental properties.

I am a truck driver owner operator and my wife just finished Law School with a JD degree. Being a long distance truck driver, i can live anywhere. My wife would be more likely to get a job in big metropolitan areas.

Here are my criterias:

- Single family 3 bed, 2 bath homes must not cost more than $120k and be able to rent for $1000 to $1200.

- Home must be in a decent area with schools that have at least a 5 out of 10 overall ratings.

- Areas must have jobs and growing population.

- State, City must be landlord friendly and allow for quick eviction process. (California takes 6+ month process so it is out)

I was narrowing it down to Columbus, Ohio. But my list included Kansas City, Saint Louis, Memphis, Cleveland, Minneapolis, Indianapolis, Birmingham, Houston, Dallas, Jacksonville FL, etc...

For the experienced investors, where should I go ? I want to have 1 million equity in 10 years.

Jim Manson · Answer

You already live in a city where you can easily achieve your goal of $1 mil in equity in 10 years. I also live right by Duke. Your characterization of Durham is not complete or accurate. There are quite a few areas you could ride a bike to which have homes to be had for decent prices. Not on the MLS, so you're gonna have to hunt them down. One of my properties has nearly tripled in value in 15 years. Another has nearly doubled in 3 years. Of course, if you move, I'll have less competition :) Up to you.

Jason Cory · Answer

From reading what you have written so far I am seeing a common mistake investors make. You want decent neighborhoods where you are going to live. You, like many investors, aren't separating investing criteria & where you live criteria. They function with completely different standards.You want to protect your family where you live.You want to make as much money as possible where you invest.If you want to flip you buy in the suburbs because owner occupants, agent resales, is what drives demand. If you want to rent you buy inner city for cheap because rent is what drives demand. Google the highest & best use tests. There are 4 tests. Regardless of how you invest make sure it passes all 4 tests. Suburbs pass all 4 for flips.Inner city passes all 4 for rentals.Don't buy if it doesn't pass all 4 tests for what you plan on doing with it.

Russell Brazil · Answer

Instead of focusing on where you can buy the cheapest houses, how about focusing on where your wife can make the most money. DC is the lawyer capital of the nation, and shes likely to make more here than anywhere else, because well everyone makes more here than anywhere else.

Jason Cory · Answer

Here are a couple of linkshttps://en.m.wikipedia.org/wiki/Highest_and_best_u...https://lasrealestate.com/investing-for-cash-flow/

Omar Khan · Answer

@Kou Y. I will second @Caleb Heimsoth recommendation. Durham is an excellent and growing part of the country. The higher prices are a reflection of the strong, vibrant economy. Of course, that isn't the only criteria one should use (otherwise, we would all be forced to move to Manhattan or the Bay Area). Durham can also allow your wife to quickly get a job in law based on (my assumption, which could be wrong) your strong local ties. Bonus, if you have family in the area and are thinking about having kids. I would also like to mention Texas - Dallas, Houston, Austin or San Antonio. Very vibrant, strong, diversified economy with a ton of upside. San Antonio is still the best value of the 4 cities and will offer a ton of value for you and your wife. All the other cities are excellent (we love Dallas).

Tom Ott · Answer

Cleveland is 100% the way to go. Still very untapped by investors. Inventory is here and prices are still low (but climbing!) Best of luck to you!

James Wise · Answer

I saw you were considering Cleveland. I have no real opinion on what you should or should not do but figured i'd drop you a link to The Ultimate Guide to Grading Cleveland Neighborhoods to assist in your search.Good luck to ya wherever you land.

Dan Krupa · Answer

@Kou Y. after I retired from the military we did just that. We moved to KC and love it. Now we are full-time investors. Everything you are looking for is here plus a growing city. The list of why I love KC is too long to list here but I have lived all over the U.S. and we are glad we ended up here.

Benny Gelbendorf · Answer

@Jason Cory Can you please specify the 4 tests for rentals and the 4 tests for flips you've mentioned ?

Aaron Smith · Answer

Durham is not cheap anywhere in the town anymore, even in the historically rough neighborhoods of east Durham or east of 70. You can’t buy anything off the MLS anymore as a deal. Even trying to buy off market is rarely ever worth it in the last year as wholesalers want way too much for the condition of the properties and the actual off market sellers are getting $100,000 for a house that was Selling just 2 years ago for $60,000-$70,000.