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Updated over 5 years ago on . Most recent reply
Locations to focus on for newbie BRRRR with cash.
Hi, my education is picking up momentum. I want to start looking at potential deals and practicing analysis. I want to test my abilities to seek out my rockstar team and get some leads. BUT what areas should I start in?
I'm living in Chicago but realize there are cities/ counties / states that might set me up better for cashflow and ROI. Part of me likes the thought of needing to visit warmer parts in the future, but torn with being close to meet people in person, observe, check in. Thoughts? Advice?
If being within driving distance isn't worth sacrificing the better returns, then where would you be looking now for first investment with 100-150k cash seed money? I hear FL, IN, AZ, TX, OH, MO...as hot areas but need to focus even tighter i think, esp. when it comes to seeking out my potential support team.
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@David C., here's my 2 cents on the question. This is my experience at least, so take it for what it's worth. Anywho, in my almost 19 years of being in the industry, I've invested in various states: CA, AZ, all over the Midwest, PA, and NY. One thing I learned - I will be slow/hesitant to buy rental property out of state - really, if I can't drive there within a couple hours, probably not interested (generally speaking).
I am a born and raised Chicagoan, live here now, know it well, have lots of relationships. I didn't have that in these other states. Any relationships I had in those states were solely based on tapping into my wallet. I didn't know those markets nearly as well, no strong connections with people to help on the buy-side, renovation, management, or when the S hit the fan. Learned some hard and costly lessons where I was limited with what I could control/affect. I'm a hands-on guy. Not saying I do much of the handy-work....I have my crews for that who are much more efficient and effective....but I don't simply "call it in" (unless it's something small & simple). I've since sold all of my properties out of state except for one. Everything else I own, am building/rehabbing, or looking to invest in is in Chicago at this point. It will take a lot for me to invest elsewhere, because it's simply not my sphere. Attractive numbers need to be substantiated with some of those "intangibles", because we all know how numbers can change easily....and much more so when it's outside your home turf. That's my opinion anyhow.