Best place to live for Real Estate Investing?

[Account Closed]

I started flipping homes in Washington state in the late nineties. We moved to Portland, Oregon in 2001 and have been in real estate since then. I am a real estate investor first, and a real estate broker second.

Now, my wife and I are getting the itch to change scenes again - we are looking at SoCal, Phoenix or somewhere in Texas. We are open to anywhere in the country that makes sense.

I know I can set up my real estate investing shop anywhere we land - but would love some guidance from the BP community with their thoughts on the best place for investing in real estate.

We have a bunch of kids - ranging in age from 2 months to 16 years old - that we will be taking with us (6 of them). We use online, virtual schools for the kids so school districts don't really matter much. We are fairly conservative. We love to travel and would like a change from the NW rain for a warmer climate. No snow!

Thanks for the input,

Stuart

[Rich Weese]

Stuart- I'll take a swing at this one since I have a LOT of experience in all 3.

1. Raised in SO CAl and made most of my money there. Unfortunately, CA has changed in the last 30-40 years and I wouldn't want to invest there. Too rich for my blood. I also don't like the liberal structure, a State being broke and many businesses leaving. I did just sell and closed on a NO CA home in Eureka, CA this week. I never bought it as an investment play, but rather as a summer hangout where I could enjoy 70 degree weather EVERY day. This will be contrary to many CA BP members but please check their reasons for pumping it.

2. Arizona- I bought a lot of property in AZ including the largest Apt building (at the time) in Flagstaff, 79 units. Flagstaff Village apts. I also owned a part time home there which I sold in Feb. I timed the AZ market extremely well and took advantage of 2 different upswings. That market has slowed a lot. Prices NOT increasing in many parts of Maricopa county but I still like the median home price range (unlike CA) and it has the most important thing to all the babyboomers looking to move (from CA and cold weather areas) --Sunshine and warmth. It is a fairly good, conservative state with conservative business policies. I've owned hundreds of doors in AZ but I wouldn't expect to buy in AZ now and make any easy money. That trend is gone for awhile, imo.

3.-Texas- I love it, I love it, I love it. I always put my money where my mouth is OR remove money from an area I'm not comfortable with. (read CA and AZ) The majority of doors I own are in TX. 150 apts, 100 homes 40 lots and a subdivision. I currently have 4 homes under const. in SO TX subdivision.

Reasons I love it.

1. Businesses are FLOODING to TX from everywhere.

2. Education is fantastic and college grads need not look out of state for jobs.

3. Very PRO business state.

4. Taxes

5. Very conservative state.

6. Loser pay in the court system. Many fewer frivolous lawsuits. This is VERY important as an investor and property owner.

7. NEVER going to run out of land so median price of home will ALWAYS be low due to land costs.

8. One of only a few States with the legal right to secede from the U.S. If it did that, I'd move back immediately.

9. Political leanings of the state is great in my opinion.

10 Death penalty State. I'm not talking about the obvious death penalty you're thinking about. I'm talking deadbeats..... No holding onto a home without paying. Foreclosure process is a TOTAL of 28 days from NOD to courthouse steps sale. I've attended many and bought many homes. First tuesday of every month in every county. I even attended one on New Years day a few years ago. Courthouse was closed but the sale still took place. Cops circling the block continually since we buyers had MILLIONS of dollars in cashiers checks.

That is just 10. There are many others. now, your only question is where in TX? Get yourself a map of texas and one dart. Put the map on the wall and throw the dart. Where it lands, move there! I'm being silly but many TX cities or areas score high continually in RE matters. Many years ago (story is on BP somewhere) I decided to buy RE again. Studied top cities for inflation in Money Mag. 2 straight years and the # 1 area for potential growth was someplace called McAllen/Edinburg TX. I'd never heard of it. I moved there. Closed on 26 homes in 35 days (accepting a challenge received at a seminar I spoke at) and either bought or built 68 homes in less than 2 years there.

I've covered the States you mentioned. I know there are many other good spots, but you'll notice one thing they have in common-sunshine.

You didn't mention FL so I'll throw it in. I moved to FL the first time in about 2007. RE in the tank and I moved there to buy RE. I did very well and still own a 700 unit storge facilty in FT Myers area. It was 55% occupied. Currently 86% and a cash cow. I need to exchane it this year for something with more depreciation available.

I just moved to FL for a second time to re-retire! Great spot- The Villages. Disneyworld for over 55 folks. I posted a thread the other day about getting out is difficult. When I see so many opportunities, I can't leave it alone. I just closed on 9 lots yesterday and will close on 3 more Tuesday. Going to build specs. Wifey is truly pissed, but I can't leave it alone. I believe my area will be the fasted growing non-oil county in the Country. Currently 3rd. I like to foresee trends and this area has a good one.

I hope that answered your question and gave you some food for thought. Rich