Great areas to start a real estate investing career in?

Question

Hello all,

I'm working on starting my real estate investing career but everything is too expensive. I realize we're in a hot market right now but I live in South Florida so everything is expensive in general. I've looked for foreclosures, off-market properties, etc. The only types of properties that are affordable for beginners down here are in bad areas and even those are top dollar. The point of this post is to call out to those who live in Tennessee, Georgia, and Texas. I have been debating moving to one of these states in the next couple of months and wanted to see if anyone had recommendations of good markets to start in in any of these states. Thank you!

Kayla Givens · Answer

Hey, @Dillon Hamman! Congrats on choosing real estate investing! You're getting started early which is the best time to get started ;-)

If you are planning to move, I would definitely start researching the areas you're interested in and would definitely connect with a few investor-friendly agents in that area. They will know the most about the market and what you can expect if you choose to invest there. If you're able to travel to those areas, I would do that too. You can start canvassing neighborhoods and looking for any signs of development and connect with locals on any knowledge they may have as well.

Best of luck to you!!

Cameron Braig · Answer

@Dillon Hamman

You'll likely find similar stories but if you learn a market well enough you can always find value. North of the Atlanta metro an area called Dawsonville, Georgia is experiencing multi-family, single family and retail growth, yet opportunities are still available. Additionally, Chattanooga, TN is experiencing development and growth and with opportunities. These are suggestions and are dependent on your goals, business plan and strategy but as major metros soar the surrounding areas provide opportunities as well. Congrats on getting started and best of luck.

Luke Hartselle · Answer

Hey Dillon!

First of all, welcome to real estate investing! It's a very fun and engaging way to build capital if you are smart about it. I work in Nashville, and investment properties are crazy expensive here too. However, there are many cities not far outside of Nashville with an abundance of investment properties for significantly less than the properties in Nashville. As more people move here everyday, more and more investors have begun looking outside of the city for opportunities.

Thanks!

Luke

Cullum Stirling · Answer

@Dillon Hamman keep your head up! It's challenging, but doable. I'm in the Nashville area as well and constantly trying to grow my personal portfolio as well as clients. I agree with the couple other Nashville guys. A lot of investors seem to be buying in here as long term defense plays. A lot of folks talk about a housing bubble and maybe that is so for some areas, but in my opinion Middle TN isn't and won't be one of those places. Along with the influx of new residents we have the same influx of diverse and high paying jobs moving here.

Make a list of cities / areas that you would personally could see yourself living in. Research each place to see which are growing and appear to have the jobs moving there to support that growth as well. Visit those places, try to network and talk with a few investors & investor friendly agents in those areas to see if they fit your investing goals and budget. Then go from there.

Personally, I think house hacks are amazing, especially for new investors. With that, house hacks deals are easier to find if you ask me.

Brenden Mitchum · Answer

Hey @Dillon Hamman, welcome to the BP community!

Fantastic advice here from everyone! Basically, the name of the game when you start out is to pick a market that makes sense in terms of population size & growth, job growth, demand for housing, and prices within your budget. That last part is important because as you've found, the market may have plenty of opportunity but you're priced out of it as a new investor with limited capital.

You are in a great position right now though. You're young and you have the flexibility to move to another market. This will put you way ahead of folks who are forced to invest remotely. So, if you truly feel there is a better market out there then the one you're in, take the leap. Do your research first though because it won't be easy, regardless of the market you pick. You'll want to have the confidence of data to back up your decision when the going gets tough. It will take time to learn that new market and meet the right people. Remember, it isn't the market that determines your success, it's how hard you're willing to work. So, try not to get caught up in the market analysis phase for too long!

I moved out to Atlanta from Hawaii at the end of 2019 for the same reason. It has not been easy but I believe in the market and have stuck with it. Success will come if you're patient and relentless.

Hope this helps a bit - please, feel free to reach out anytime if you have questions or just want to chat!

Tony Clark · Answer

Hey @Dillon Hamman congratulations on starting the journey! Like @Luke Hartselle I also live in Nashville and would agree with everything he's saying. Clarksville and Columbia are two cities each within an hour of Nashville where the rental returns are still decent.

I invest in Nashville myself and do have a lot of clients investing here still because even though the cashflow isn't that strong, the projected (and current) job growth and property appreciation is a draw for those looking to sit on a property and let it appreciate. I like investing in Tennessee because it's a very landlord friendly state as well.

If you have any questions about Nashville don't hesitate to reach out, and best of luck in your search!

Jonathan Greene · Answer

For brand new investors you can't really start by thinking there are "bad" areas when "bad" areas are all you can afford to start in a lot of cases. The South has a ton of options to start investing, but you don't know the towns. If you show up in a new town and you find one pizza place, you might think it's good since it's the only game in town. This can happen with relocating investors who are eager, too eager, to get a deal. There are plenty of investment pockets in Florida that would suit your budget, but yeah, South Florida can be high overall, but there's plenty within driving distance that can work.

Great areas to start a real estate investing career in?

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