Noob wondering best city’s to invest

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Noob wondering best city’s to invest

Joe LeGolvan
Rental Property Investor · Lakewood, CO · Member since 2020 · 22 posts · 15 votes

Hey I’ve got a few rentals in my current city of Colorado and looking to transfer them into a better cash flowing market. I’m looking for a city that’s got good cash flow but also stable job growth and avoiding war zones and negative population growth. I’ve been looking strongly in to Memphis, but also Indiana, and also Arkansas. Any recommendations would be extremely helpful also any information on return key company recommendations.

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Timothy Lewis
Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
5y

Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

Cred: @Lane Kawaoka

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  • Joe LeGolvan
    OP
    Rental Property Investor · Lakewood, CO · Member since 2020 · 22 posts · 15 votes
    5y

    @Joe LeGolvan turn not return...

    1Reply
  • Timothy Lewis
    Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
    5y

    Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

    Cred: @Lane Kawaoka

    7Reply
  • Collin Boyer
    Real Estate Agent · York, PA · Member since 2020 · 44 posts · 22 votes
    5y

    I work with a wholesaler who is based out of Colorado and his partner recently moved to York, PA (where I am located). We have worked on a ton of wholesale and flip opportunities that end up turning into awesome cash flowing properties. They locked up a Bilevel in a beautiful neighborhood for $110,000, very minimal repairs would rent for easily $1,800 a month. Plus those SFH's appreciate. STAY AWAY FROM YORK CITY AND HARRISBURG CITY.

    2Reply
  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    5y

    I can recommend Indy

    1Reply
  • Joe LeGolvan
    OP
    Rental Property Investor · Lakewood, CO · Member since 2020 · 22 posts · 15 votes
    5y

    @Nick Giulioni do you have any turnkey company’s you would recommend out there?

    0Reply
  • Joseph Schweizer
    Investor · Member since 2020 · 291 posts · 592 votes
    5y

    Hi @Joe LeGolvan!

    I recently made a purchase in KC. I would recommend KC also as Tim mentioned above. I linked my first investment below.

    https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    Check out this article: https://observer.com/2020/12/e...

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    1Reply
  • Praful S.
    Investor · Jersey City, NJ · Member since 2016 · 10 posts · 6 votes
    5y

    Lot of people would recommend the places where they invest in, which is natural. Is there a place where you have no investments in and are seriously considering to start in 2021?

    I am thinking of Austin, TX and Southern Florida (Ft Lauderdale, Plam Beacon) but with inability to freel travel due to covid, knowing someone trustworthy on the ground is more important than ever and that's what is holding me back right now.

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Joe LeGolvan

    Do your research on these cities: Houston, San Antonio, Amarillo and Dallas Suburbs.

    Goodluck and Happy Investing.

    Feel free to reach out if you need help with the Houston market insight.

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  • Zeke ListonBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Joe LeGolvan:

    Hey I’ve got a few rentals in my current city of Colorado and looking to transfer them into a better cash flowing market. I’m looking for a city that’s got good cash flow but also stable job growth and avoiding war zones and negative population growth. I’ve been looking strongly in to Memphis, but also Indiana, and also Arkansas. Any recommendations would be extremely helpful also any information on return key company recommendations.

    Hi Joe, I would look into the Columbus, OH market. The city hits the criteria you're looking for   

    [email protected]614-665-5793
    Forge Real Estate Advisors535 Reviews
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    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Joe LeGolvan:

    Hey I’ve got a few rentals in my current city of Colorado and looking to transfer them into a better cash flowing market. I’m looking for a city that’s got good cash flow but also stable job growth and avoiding war zones and negative population growth. I’ve been looking strongly in to Memphis, but also Indiana, and also Arkansas. Any recommendations would be extremely helpful also any information on return key company recommendations.

    The issue with turnkey properties is that they eat up a lot of your profits. Have you considered creating your own turnkey machine?  That is what a lot of investors do in Columbus, Ohio.

    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contract, lender, and property manager.

    https://www.biggerpockets.com/blog/core-four-real-estate-team

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    2Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    Check out Seaside Heights, NJ

    0Reply
  • Brett P Holmes
    Rental Property Investor · Chicago, IL · Member since 2017 · 9 posts · 4 votes
    5y

    Good question (but broad).  Think about which markets are most accessible to you (relative to where you currently live, somewhere you visit frequently, or within driving distance).  Typically, the economic demand drivers are the same across all successful markets.  If you are just getting started, you want some room for error and you're going to find that in markets that demonstrate positive trends such as population growth and job growth.  It's as simple as that.  Then you can narrow in on things that attract people to areas like schools, hospitals, and commercial activity.

    0Reply
  • Stanford O.
    Member since 2020 · 4 posts · 5 votes
    5y

    @Collin Boyer send me a PM I am interested in investing in Penn.

    Thank you

    0Reply
  • Daniela Andreevska
    Real Estate Consultant · Member since 2020 · 44 posts · 71 votes
    5y

    Hi, @Joe LeGolvan!

    All the markets you've been looking at are really good for investing at the moment. My team has recently looked at the performance of long-term rentals across the US, and our analysis shows that currently these markets offer an above-average return on investment. They also come with positive population growth and good labor markets. What you need to consider though is the relatively high crime rates there.

    Let's look at Memphis first. According to our data, the city-level cap rate for long-term rentals is about 3.9%. I know this might not sound like a lot because experienced investors usually recommend a cap rate of 8-12%, but it's important to keep in mind that this is a city-average number. Indeed you are able to find properties in Memphis which offer a significantly higher return. However, something to keep in mind is the high crime rate in Memphis (in particular, I am looking at data from Neighborhood Scout). But unfortunately, in real estate investing in most cases a high return comes with a high risk.

    Arkansas also provides some good opportunities. In specific, based on our most recent analysis, I would recommend looking into Jonesboro, where the average cap rate is 2.9%, as well as Little Rock, where the average return is 2.5%. Crime rates are a concern in both these markets, however, especially in Little Rock, which is ranked as one of the unsafest places nationwide.

    In Indiana, Muncie leads the list of most profitable locations for long-term rental properties with an average cap rate of 5.4%. Actually that's really high (for a city average) not only within Indiana but across the entire US housing market. So I'd really look into Muncie, where the crime rate is also lower than in most other good markets in Indiana. Elkhart (with a cap rate of 3.9%) and Fort Wayne (with a cap rate of 3.8%) are two other locations that I'd recommend.

    Good luck with your endeavor!

    3Reply
  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    5y
    Originally posted by @Joe LeGolvan:

    @Nick Giulioni do you have any turnkey company’s you would recommend out there?

     I do not - generally don't recommend turnkeys overall at this point (having started my investing with that approach). 

    0Reply
  • Collin Boyer
    Real Estate Agent · York, PA · Member since 2020 · 44 posts · 22 votes
    5y

    @Stanford O. Sent

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    5y

    @Joe LeGolvan when you say 'transfer' do you mean you're going to sell your Colorado portfolio?  What's wrong with them?

    0Reply
  • John Jones
    Realtor · Memphis, TN · Member since 2020 · 33 posts · 22 votes
    5y

    @Joe LeGolvan The markets you mentioned would definitely hit your criteria. Specifically to Memphis though, the crime can be a simple workaround so long as you have some trusted boots on the ground to help navigate the areas. Fortunately it’s not permeated throughout all of Memphis, it’s really in certain areas. I’d recommend Quick Sell Memphis as a turnkey company and speaking with @Stephen Akindona

    1Reply
  • Joe LeGolvan
    OP
    Rental Property Investor · Lakewood, CO · Member since 2020 · 22 posts · 15 votes
    5y

    @Nick Giulioni ok do you have a realitor or management company you would recommend?

    0Reply
  • Joe LeGolvan
    OP
    Rental Property Investor · Lakewood, CO · Member since 2020 · 22 posts · 15 votes
    5y

    @Nicholas L. One of my properties is worth about 320 and only cash flowing about 1000 a month. I would like to sell this property and buy three rentals around 100 K.

    0Reply
  • Lawrence Swartz
    Member since 2019 · 1 post · 0 votes
    5y

    @Collin Boyer Hey Collin, let’s connect. I’m entering the York and Lancaster PA markets. Do you have buyers in that area?

    0Reply
  • Wyatt Degaine
    Real Estate Agent · Denver, CO · Member since 2017 · 38 posts · 10 votes
    5y

    @Joe LeGolvan

    Hey Joe, what type of properties you looking to sell? SFR, Townhouse/condo? What type of properties are you looking at investing in? I know I have a couple

    ideas that are a short plane ride away.

    0Reply
  • Josh Arnold
    Financial Advisor · Fort Wayne, IN · Member since 2020 · 19 posts · 3 votes
    5y

    @Nick Giulioni I’m interested if we can chat offline. I’m in the same state just north

    0Reply
  • Mike Cosmah
    Real Estate Broker · Columbus, GA · Member since 2018 · 28 posts · 22 votes
    5y

    I would try to look in markets that performed well throughout the pandemic. There are some good markets out in Texas, South Florida, Atlanta, GA and Charlotte, NC. YoY rent growths were good in these markets and the outlook on each are quite good. If you have any interest in the GA or NC markets please let me know, my team would love to help.  

    1Reply
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