What part of the country is there a better return then 6%

[Adam Jaken]

Hi guys and a happy Friday to you all. I would like to start off by saying i love this site and all the posts people put up! I have recently been reviewing a lot of posts and it seems like a lot of you are receiving a very high return on investment. I was wondering how that was? I currently own 5 properties in the Las Vegas area and I bought them in 2009 - 2016 and it seems like after calculating all my yearly expenses i make a 5-6% return on the cash i invested in the properties. A little about the 5 properties i own. They are all in class A communities and have very to zero turn over in the last 5-7 years. They are all paid off in cash and I was wondering if there was some where else in the US I can invest and purchase property with a higher return on my money, but not overlooking the fact I would like the properties in a class A neighborhood also? From your expertise what else can i do to expand my investments? What other states/towns are good for ROI for single family homes? Thank you guys for all your posts and happy investing to you all!! Adam

[Joel Owens]

You answered your own question. Class A areas tend to have limited turnover and higher rent to equity growth over time for appreciation.

They also tend to have the least amount of cash flow.

A area - more appreciation, less cash flow

B area- middle appreciation, middle cash flow

C area - less appreciation, more cash flow ( bigger headache )

D area - close to zero appreciation or loss of current value, higher perceived cash flow with more work and a huge headache. ( owning out of state A and B area are the ones most investors stick to ).   

If your properties are paid off you could sell them and 1031 exchange into something else or refinance them up to 75% of the value and put the money to work harder in other areas.

If you are asking where to buy A properties at C area values that is almost non-existent. You would need to take a property run down in an A area and inject it with rehab to buy at a lower price or maybe build new from the ground up. Just too much capital from buyers for existing inventory right now on the SFR side.