Top three markets you are researching?

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Top three markets you are researching?

Ramsey Blankenship
Rental Property Investor · San Diego, CA · Member since 2016 · 119 posts · 129 votes

I recently moved from Panama City, Fl. to San Diego, Ca.   The real estate dynamic is completely different in Southern California so I am forcing myself to learn market research across the country. I am interested in the Top Three markets any of you are researching right now and why?  Here are my top three:

1.) Panama City, Fl. - Because I am familiar with the area and have a great team of agents, managers, cleaners, and contractors. Problem is, Panama City's market has grown exponentially over the past three years and deals are hard to come by (as I am sure is the case in most cities).

2.) Asheville, NC.  and surrounding areas - I simply love this city. One of my favorite places to visit, so therefor it is a place I would consider retiring. I have 8 years left in the Navy and want to hang up the flip flops and lace up my hiking boots. Asheville is another city that seems to have out priced itself however the surrounding areas have a decent amount of multi family homes. Asheville has a very large shortage of long term rentals, which is great for a landlord, however it has driven prices sky high any where near downtown. If I were to purchase in Asheville, I believe it would be in the surrounding area vs. downtown.

3.) Tucson, Az. - This is simply based on proximity to San Diego. Tucson seems to have ALOT of multi family and I have read articles that claim/prove that Tucson follows the Phoenix rental market. Phoenix has risen over the past three years and Tucson is showing signs of doing the same however the prices are still low. My concern with Tucson is the amount of MF I see for sale. This makes me wonder if vacancy rates are high and the Multi Family space is competitive. 

Essentially my top three are based on - A place I lived, a place I would like to live, and a place close to where I currently live. I am trying to break this mindset and invest in markets that make since financially, rather than proximity.  

Please participate in this conversation regardless of your experience, or even if you don't have three Markets.

Ramsey

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Jody SchnurrenbergerPro Member
Investor · Asheville, NC · Member since 2017 · 506 posts · 404 votes
8y

While I can't vouch for the accuracy, when I'm interested in vacancy rates, I look at www.BestPlaces.net.  According to them, Tucson has a 12% vacancy rate (and 44% of the population as renters).  https://www.bestplaces.net/housing/city/arizona/tu...

Places I invest in or am interested in investing in include:

1.  Auburn, AL because it's my hometown, I'm familiar with it, the university probably isn't going anywhere, if you're patient, you can find a deal, during the real estate downturn, Auburn was one of only like 15 or so cities where the property values still went up (at least one year--there was an article about it lol), nearly 50% of the population are renters, and the list goes on.  I'm buying my 4th property next week.  :-D

2.  Raleigh, NC because it has multiple draws (state capital, part of the tech triangle, and NC State), home appreciation is up nearly 20 percent in the last 10 years (is that a plus or a minus...I'm not sure lol), renters make up almost 43% of the population and vacancy is only 9%.  Most importantly, I'm in Asheville and it's not too far away.  Crime is higher than I'd like, but it's not completely insane, just higher than the national average.  I've been told it's a really tough market and there is a lot of competition, so we will see how that goes.  It's also not the cheapest market I could find, but I'm going to give it a try.  I've found a couple of agents/PMs to interview, but I'm open to suggestions for both agents and property managers, if anyone has any.

3.  Fort Collins, CO is actually my  #1 choice, except for the distance from me (and to some extent, the cost).  Unemployment is only 3.3%.  Nearly 44% of the population rents and the vacancy rate is less than 4%.  Home appreciation is over 31%...again, is that good or bad?  It's also just beautiful there.  While property crime is slightly above average, the violent crime is significantly below average.  (And property crime in Ft. Collins is the lowest of the 3 locations.)  I just love Fort Collins.  Perhaps I'll move there one of these days.  :-)

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  • Lumi Ispas
    Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
    8y

    @Terry Lao , that's a great question. Chicago has 77 official neighborhoods and over 200 unofficially. There are parts of the city that are back to the peak prices, most of Downtown and surrounding areas are way above those prices, and there are a lot of neighborhoods in the South and West that are far off. 

    I would say the best appreciation is around Downtown, around the train lines, around highway access, best school districts and the Hospital and University areas.

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  • Jake Arden
    Real Estate Agent · Fort Myers, FL · Member since 2016 · 28 posts · 9 votes
    8y

    Hey Lumi, would be happy to talk more to you about Fort Myers market!I I shot you a message!

    1Reply
  • Ramsey Blankenship
    OP
    Rental Property Investor · San Diego, CA · Member since 2016 · 119 posts · 129 votes
    8y

    @Maxwell Lee thanks! 

    I am renting as well. I dont like renting but I dont like the idea of buying in an overpriced market even more.

    1Reply
  • Jody SchnurrenbergerPro Member
    Investor · Asheville, NC · Member since 2017 · 506 posts · 404 votes
    8y

    That's so funny, @Ramsey Blankenship, because I'm also renting.  I don't want to buy here for a number of reasons, price just being one of the factors.

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  • Nate Waters
    Investor · Yorba Linda, CA · Member since 2013 · 27 posts · 40 votes
    8y

    @Ramsey Blankenship

    Following are the areas I am now looking into and why:

    Fishers/Carmel, IN

    • Jobs added per housing start is favorable = shortage of housing
    • Gross rent was stable through the recession
    • Fishers named best place to live
    • Great schools in Fishers/Carmel

    San Antonio, TX

    Provo, Ut

    • Identified as a favorable city for millennials
    • College town (BYU)
    • Up and coming tech center
    • Good job growth
      • Stable and growing rents over the long-term

      I'm primarily interested in multifamily but these indicators can also apply to SFR. My goal is to invest for cash flow AND give myself a chance to catch appreciation.

        Next step will be looking for teams in each of the areas identified.

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