First long term rental investment

[Ajay Renga]

Hello!

I am new to BP and thrilled to meet you all virtually. I am based out of IL and own our primary residence in the Greater Chicago area suburb. Looking to buy our first rental investment, preferably long term as I am a buy and a hold investor. The high property taxes in IL (2nd highest in all 50 states) combined with high interest rates now, kills any positive cash flow, so looking to invest out of state. Budget $300k or below and SFH. Ideally looking to make $300-$500 cash flow monthly, with some decent appreciation of the property over time.

Preference is sun belt states with low property taxes. Any suggestions and ideas are appreciated! Thank you!!

[Laura Shinkle]

Quote from @Ajay Renga:

Hello!

I am new to BP and thrilled to meet you all virtually. I am based out of IL and own our primary residence in the Greater Chicago area suburb. Looking to buy our first rental investment, preferably long term as I am a buy and a hold investor. The high property taxes in IL (2nd highest in all 50 states) combined with high interest rates now, kills any positive cash flow, so looking to invest out of state. Budget $300k or below and SFH. Ideally looking to make $300-$500 cash flow monthly, with some decent appreciation of the property over time.

Preference is sun belt states with low property taxes. Any suggestions and ideas are appreciated! Thank you!!

 I saw that @John O'Leary mentioned the Charlotte market. I'm an agent in the area and work with investors of all kinds. For this area, getting $300-$500/door is not going to happen for a LTR, unfortunately. At least, not if you're accounting for Cap Ex, Vacancy, etc and are only wanting to put 20-25% down. My calculations for the last 6 months or so require 35-40% down to get the cash flow. The rental rates just haven't caught up with purchase prices, let alone the increased interest rates. 

A lot of investors are turning to the STR and MTR strategies here. They do require more up front work, but with the use of a property manager can be a good option.

I'd love to see if anyone posts about the other areas mentioned, if they're a better option.