Best Rental Market for New Investors

[Emily Baratta]

Hi Everyone!

I am new to Biggerpockets and looking to invest in my first rental property sometime in the next six months.  I live in New York City so I am planning to invest out of state through a turnkey. So far, I really like Homeunion and Roofstock. They each have a different strengths. In terms of markets, I am thinking about Cleveland area, Memphis, Pittsburgh area, Indianapolis, or Georgia. I would like to purchase a property for no more than $100,000, and cash flow is what I would like to prioritize. 

I would love to hear any advice from people who are in these markets or have worked with a turnkey provider that brought them a lot of success! Or I would love to hear about what markets people think I should also be considering!

Also more specifically, Cleveland seems to be great for cash flow, but I have heard required inspections from the city can be incredibly frustrating, eating up time and money. Does anyone have experience with this? If so, would you recommend a first time investor avoid Cleveland? How should I approach this?

Additionally, if anyone has experience in these markets and is based in New York City, I would love to have the opportunity to meet up!

[Tom Ott]

Originally posted by @Emily Baratta:

Hi Everyone!

I am new to Biggerpockets and looking to invest in my first rental property sometime in the next six months.  I live in New York City so I am planning to invest out of state through a turnkey. So far, I really like Homeunion and Roofstock. They each have a different strengths. In terms of markets, I am thinking about Cleveland area, Memphis, Pittsburgh area, Indianapolis, or Georgia. I would like to purchase a property for no more than $100,000, and cash flow is what I would like to prioritize. 

I would love to hear any advice from people who are in these markets or have worked with a turnkey provider that brought them a lot of success! Or I would love to hear about what markets people think I should also be considering!

Also more specifically, Cleveland seems to be great for cash flow, but I have heard required inspections from the city can be incredibly frustrating, eating up time and money. Does anyone have experience with this? If so, would you recommend a first time investor avoid Cleveland? How should I approach this?

Additionally, if anyone has experience in these markets and is based in New York City, I would love to have the opportunity to meet up!

 Hello,

I can tell you that Cleveland has really grown into a great city to invest. The inspections can be a pain, but it depends on what you are looking to do. If you are looking to buy and hold or you are looking for a Turnkey, I would make sure they are violation free at closing. This way you won't need to worry about the POS inspections until you go to sell. They are kind of a double-edge sword. They keep the cities looking nice, but they can sometimes be a pain. 

Try looking at:  https://www.biggerpockets.com/forums/48/topics/657742-forbes-the-best-markets-for-real-estate-investments-in-2019

Forbes has an artcile about the top real estate investment markets in 2019. 

Also, since you mentioned some investment/Turnkey websites, I would look at:

The Best Types of Markets for Profitable Turnkey Properties

and

The Most Common Misconceptions of Investing in Real Estate

and

Out-Of-State Turnkey Investing: How to Minimize Your Risks