Best cities/areas to invest/move to?

[David W.]

Which cities/areas do you guys think got the best potential for real estate investing (growth)? and your reasons behind it please.

Should I look for the cities that dropped the most after 2008 (FL, CA, AZ, NV) or find cities with a lot of jobs, people constantly moving in? like TX, however TX the real estate there the appreciation is very slow, 1 to 3% yearly and land is vast real estate doesn't really go up that much I guess.

I am moving, and thinking about moving to some cities that got great potential for real estate in the next 10,20 years. Not sure if it's wise to move just based on the real estate market there, but it is a great time to invest in RE now right? I think 50% on my decision will be based on if I like the city/state, and 50% on how good the real estate is there. thanks (when do you guys think will still be a good time to invest in RE? next 1,2 years?)

I might just pick somewhere that I like to move to, and then get to know the market really well then start investing, instead of deciding which cities got the best potential for RE growth then move there, because I might not like the area even though it got good growth for RE. Should I do that? I guess nothing wrong with either one, just depends on what you like to do.....

my goal is to just hold and wait for it to appreciate, and have cash-flow renting it out. Might try to flip some houses with investment club or others (I am totally new in this RE investing thing) So yeah that's where I am at, I can move anywhere, just need to pick somewhere that I like to move to and where it also got good housing market potential. I have about 600k that I can invest in RE, I am self-employed so I can't really get loans/mortgages since I don't really have income. I am thinking about buying 50k to 150k houses, first few buy with cash then when I have rental income I can get mortgages on the later investments properties, what do you guys think about that plan? (I also have good credit)

thanks guys for reading and help

[Marco Santarelli]

Hi @David W.,

Welcome to BiggerPockets!

First of all, if your investment strategy is to 'buy-and-hold' then don't fall into the line of thinking that you must live where you invest. I have a saying that I follow:

"Live where you want. Invest where it makes sense!"

I personally live in southern California and the only property I ever bought here was in Jan. 1999 when the numbers made sense and you could get cash-flow.

In selecting a market to invest in, start by focusing on markets with a positive trend in job and population growth. This helps float the local real estate market. Texas markets like Dallas, Houston and San Antonio are good examples.

Regarding Texas, you're under-estimating the appreciation there over the last few years. It's more than the 1-3% you mentioned.

If you're trying to select markets based on future growth, you may want to download my "2013 Housing Market Forecast" from our website. Use it as a guide and compass, and to help stimulate some market ideas.

Now is a great time to invest in real estate. There are so many opportunities to pick up cash-flow properties in markets showing strong growth. Do your research and narrow down the markets than make the most sense for investing. Then you can narrow down the areas/neighborhoods and properties that meet your investment criteria. In the right markets, you will get cash-flow and equity growth.

Lastly, single-family homes in the $50k to $150k opens up a lot of possibilities. You're in the "sweet spot" in a lot of good markets and neighborhoods. And even if you don't qualify for financing right now, you may be able to do a cash-out refinance later when you can qualify.

Continued success!