What city should I invest in?

Buying & Selling Real Estate
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What city should I invest in?

Hang Lee
Investor · Santa Clara, CA · Member since 2015 · 5 posts · 3 votes
Hi bp, If I have $175k to invest in a property, where should I buy? Kansas city? Atlanta? Denver? Dallas? Please advise and tell me which city is best and shy? Thanks, Hang
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y

Anywhere within a 90 minute drive of where you are located. Im a firm believer of looking close instead of far away.

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  • Lelith Walker
    Investor · New York City, NY · Member since 2013 · 263 posts · 141 votes
    10y

    Federico Gutierrez--An Obama Promise Zone is a series of neighborhoods  in certain cities that are being targeted to be built up.  You normally get a tax exemption or abatement and may get grant funding of some sort if you invest in those areas.  Eventhough Obama is leaving office I believe that three of the candidates will continue it. (I know I am being hopeful)

    https://www.hudexchange.info/programs/promise-zones/promise-zones-overview/

    https://www.whitehouse.gov/the-press-office/2014/0....

    Yes, all cities offer investment opportunities but all of them do not offer incentives for businesses and individuals to own property and some offer better incentives. For example, take CA cities and TX cities.  The average cost of homes, insurance, property and income taxes in CA is higher than TX. I say if you can invest where your money goes the furthest and you have a good trustworthy team why not do it. 

    http://taxfoundation.org/

    http://www.naic.org/svo.htm

    2Reply
  • Randall Jacobs
    Investor · Friendswood, TX · Member since 2016 · 88 posts · 51 votes
    10y

    Yeah, I've owned rental property in California and that will never happen again; even if they gave me the property.  I much prefer the landlord friendly laws of Texas

    0Reply
  • Anita Hale
    Property Manager · Atlanta, GA · Member since 2014 · 19 posts · 3 votes
    10y
    Atlanta - A recent online article (trying to find it again) indicated Bibb and Clayton County are the best counties to invest in Georgia. It was either the cap rate or ROI - it was over 20%. Based on my knowledge, Clayton County (Riverdale, Jonesboro, Forest Park, etc) would be better. It's closer to Downtown Atlanta, near the Airport and Marta (public transit) in now serving the Clayton County Area. Bibb County is about 1 and 15 min south of Atlanta. With $175k you can buy a couple of homes and have change leftover!! Hope this helps!
    1Reply
  • Matt Sicignano
    Investor · Smyrna, GA · Member since 2014 · 96 posts · 72 votes
    10y

    Here's something that might help you in your decision-it's from the chief economist of the National Association of Realtors. It looks like Miami, Las Vegas and Phoenix will have high appreciation rates with the major cities in the extreme appreciation range.....what's that?, wait a minute, what the $$#@@!!-what date is this from!

    2Reply
  • Dylan W.
    Investor · Harmony, CA · Member since 2013 · 33 posts · 20 votes
    10y

    I hate Sacramento County for rental properties, Who wants a building inspector violating your tenant's privacy during their rental property inspection? I believe in property rights more than $. That was enough for me to leave Sacramento County as a landlord. I might do a flip there and it is not a bad place to live, but i won't have rentals there ever again. 

    I also would not invest in the SF bay area unless you are comfortable banking on appreciation and love low cap rates. 

    Merced, now that is a rough town, but it has some probability for appreciation and cash flow both. 

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  • Vamshi Ananth
    Toronto ON, Canada · Member since 2016 · 96 posts · 26 votes
    10y

    @Dylan W. I live in the Bay Area and due to the sky high prices here I don't see any good potential for buy and hold rental properties that would cash flow. I recently visited Merced as its just a 2hr drive and found some parts of the city to be decent especially around the university. I also felt that the properties are affordable and might make good student rentals. I would appreciate if you could pitch in with any insights on Merced.

    1Reply
  • Dylan W.
    Investor · Harmony, CA · Member since 2013 · 33 posts · 20 votes
    10y

    Vamshi

    Post crash, I think there were some tremendous buys in Merced and Los Banos (I would be more likely to invest in Los Banos). I was busy with a self storage project and apart from bidding on a few properties at tax sales, never got into that market in a meaningful way. My dad bought a house there which he recently sold and did pretty well on. Do your research before investing there as crime is particularly acute. The drought and real estate crash have decimated the local economy.  I like Los Banos better because that is largely a commuter community and I think that it will do better long term than Merced since it has more relation to the Bay Area.

    Best of luck to you.

    0Reply
  • Brandon Gentile
    Real Estate Agent/Investor · Clarkston, MI · Member since 2013 · 156 posts · 34 votes
    10y
    Many have said it but I want to reiterate the point. You must write out your game plan and EXACTLY what you are looking for in return. Then I would pick and area with those goals in mind. Whether that be cash flow, appreciation, tax shelter, etc..
    0Reply
  • Omar Merced
    Real Estate Investor · Las Vegas, NV · Member since 2016 · 399 posts · 260 votes
    10y

    Hi Hang. I love when someone post a message that creates a frenzy. Like sharks smelling blood. Bottom line learn, talk to people and then do something. Me, I love multifamily and I don't think anyone will ever be able to get me away from that but I'm sure that there are some really smart people out there that could argue for hours on why I am wrong. And I wouldn't care because I've chosen my path. To me the numbers (almost) never lie. That being said I look at the markets that provide the best return for my money. Right now thats the midwest. I just came back from a trip to Ohio and I loved it. So'll I picked up a 17 unit that I'll be repositioning and picking up 200-300 units by the end of next year. After that who knows I'll cross that bridge when I get there. All said, you have a great problem to have. Good luck

    1Reply
  • Shital Thakkar
    Specialist · Dallas, TX · Member since 2010 · 511 posts · 252 votes
    10y
    Hi, I am from Dallas TX. And I recommend market here, as we have very diverse economy growth that is almost resistance to any one type of recession.
    0Reply
  • Neil Henderson
    Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes
    10y

    These threads remind me that Real Estate Investors are just like Stock Investors. There are Bears and Bulls, Shorts and Longs, Value, Dividend, Junk Bond, Quants, Bogle heads, etc. and so forth.

    Always very interesting and informative, even when I don't agree with everything that's being said.

    Great thread @Hang Lee

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