Best places to invest??

Question

The market here in Rhode Island is very hot but VERY overpriced with little room for ROI. I am starting to consider investing in out-of- state real estate. Where are the best up and coming markets? I finally realized that just because my local market is to competitive it does not mean that I should only be limited to where I live! I keep hearing about Michigan, Florida, Indiana and Ohio. I would love some feedback, thanks!!

Paolo Agostinelli · Answer

I live in and invest primarily in Pittsburgh, PA and while a few neighborhoods have appreciated quite a bit in the last few years, housing continues to be be very affordable. Plenty of fix and flip opportunities in both residential and commercial still exist. Also, Pittsburgh remains one of the best cash flowing cities in the country and has historically been relatively immune to dramatic price swings that certainly most coastal cities have experienced. If you'd like to learn more as part of your due diligence, just let me know if I can help. I'd be more than happy to discuss with you.

Gary Swank · Answer

@Paolo Agostinelli I really enjoyed reading your response to @Daniel DeSurra about the Pittsburgh market. Pittsburgh really does continue to attract many corporations, companies and small business owners for a variety of reasons. Pittsburgh has gone through an amazing transformation from it's steel industry days. Many neighborhoods are seeing their areas renovated while tax and development incentives are enticing many businesses to move in and grow. Our Mayor, Bill Peduto, is spearheading/encouraging many of the infrastructural improvements such as the "Hyperloop". We just saw the Rivers Casino breaking ground on a new hotel that will be accompanied by a major upcoming development called the "Esplanade" transforming Pittsburgh's North Shore. All of this combined with the tech and healthcare growth in our area by such corporations as UPMC (University of Pittsburgh Medical Center), AGH (Allegheny General Hospital), Ford/Volkswagen/Argo AI's joint venture on self drivings cars, Uber, Google, Amazon, Carnegie Mellon, and many others, are attracting people to the area who in turn need housing. This is attracting Real Estate Investors looking to cash in on Pittsburgh's growth. Now, more than ever, I see Pittsburgh providing Investors many cash flowing opportunities and returns on those investments. Many people, mostly young urban professionals, are moving into the city and surrounding areas to take advantage of this growth. @Daniel DeSurra Daniel, in addressing your specific concern about declining population growth in Pittsburgh: The last census was completed in 2010, next one scheduled for 2020. So we have yet to formally see today's population issue addressed. From what I have experienced, after living here my whole life, is that Pittsburgh did in fact see a stagnation period between the steel industry exit and the influx of the tech/healthcare era. Therefore, in my opinion, we saw our share of people moving away and now a generation has passed on contributing to many of the recent articles about Pittsburgh's "declining" population. I am confident we will see a surge in those numbers as Pittsburgh continues to flourish.Feel free to reach out to me if you want to know more about this tremendous city of ours....Pittsburgh PA.

Elise Bickel Tauber · Answer

I completely agree with @Paolo AgostinelliPittsburgh has pockets where you can pick up properties around $10-$30k and other areas that a $200,000 house needs gutted for resale at $400k+So many opportunities and options.

Kevin Wilson · Answer

@Frank Capaldi under contract on my first investment property in Pittsburgh. The numbers make sense on paper there and hoping it pans out. Many great points made here reference this Market and I have found the same through my novice research so far. Good luck wherever you land!

Paolo Agostinelli · Answer

Thanks for the question, Daniel. No concerns at all, quite honestly, as that isn't representative of what really is going on in our market. When you look at Pittsburgh more specifically, you'll find that the region has some of the very best medical research, healthcare systems, and universities in the country. That research and innovation has and continues to drive the startup community and to attract venture capital dollars from all over the country. Companies such as Amazon (Amazon just announced 2 weeks ago that they are building a 1M+ Sq Ft distribution center here), Uber (most of their LIDAR testing and other R&D are located here), Google, Microsoft, etc. Have significant presences here and continue to hire and to invest in the area. So much so that neighborhoods adjacent to our "hot areas" have become very popular areas to invest, as well, so new neighborhoods continue to draw attention. And while it's still too early to tell how Opportunity Zones are going to affect lower income and other under represented segments, there is still quite a bit of housing stock available for rehab. After saying all of that, real estate prices here are still very affordable and Pittsburgh is still one of the best cash flowing metros in the country (without the downside risk that hyper inflated markets experience). Much better cashflow than what you're seeing on both coasts.Feel free to reach out with any other questions or if you would like to discuss further!

Jabari Long · Answer

I've been investing in the Detroit market for years and the returns are very attractive.

Gary Swank · Answer

@Daniel DeSurra I'm not sure where they got their data either Daniel. Up until recently, Pittsburgh has traditionally been an "older" population so that factor may have contributed to the statistical decline.

Daniel DeSurra · Answer

@Gary Swank@Paolo Agostinelli Thank you so much Gary and Paulo for your responses. Pittsburgh intrigues me in a lot of ways. My only concern was the population decline I saw on Texas A&M’s Real Estate center. They had stats for every year up to 2018 and it looks like the total population decline since 2010 is 1.689%. I don’t know where they get their statistics from. Perhaps they are wrong?

Daniel DeSurra · Answer

@Paolo AgostinelliHi Paolo, I’m considering investing in the Pittsburgh region. Are you concerned with the declining population growth of Pittsburgh? Thanks!

George Pauley · Answer

There's different types of investing, so the question is a bit open ended. For buy-and-cash-flow I'd recommend the central US, Memphis, Davenport, Indianapolis, Springfield, etc.