Done with Portland Metro Market!

[Rocky Pe Benito]

Hi Everyone,

I would like to get your thoughts on cash flowing areas right now, outside of the big markets. It's almost impossible to cash flow anything in the Portland metro area right now, and that includes the outskirts! I have read a lot about the idea of investing out of state, but I wanted to hear if any of you have any specific city/state you've had good luck with recently. I have no limitations as long as I can get some good deals that will cash flow. I'm looking for a 100k property on a fouplex. Don't laugh! : )  I was just researching New Jersey and there seems to be good deals out in that area and rents are very good.  Property taxes maybe high, however.

Any recommendation on where I should start researching?

Thanks in advance and Happy New Year!

[Chris Ramos]

Howdy

I personally invest in Utah - my home state and where all of my current rentals were purchased many years ago, so not as relevant. I also invested in rentals in Indianapolis between 2014 and 2016 but was getting priced out of the are, meaning to get the higher returns I was being forced into rougher areas and chose to quit buying there. 

Currently I buy in Michigan, my properties are hitting a true net return in the 8.5% to 12% range. If your going to buy in any market other than your home then it's homework, homework and more homework. Good contacts will speed up your process and help with your success. I went through multiple management companies, contractors, realtors, etc.... to find the few good ones that I have.

Probably the most important ingredient is the property manager, they can make or break your out of state investment. I would start by researching an area that is in an upswing and then start seeking out a good P.M., then once you find a good P.M. or any other piece of the puzzle I would hit them up for referrals as birds of a feather tend to flock together.

This reminds me of the first quality person I encountered in Detroit, he was and is a realtor who has always been up front and honest. He introduced me to two great P.M.'s and an excellent contractor. From there the contacts simply grew and grew, not saying the weeding out process stopped, not at all. You really need to keep your guard up when dealing with new contacts. If you're interested in Michigan I'd be glad to chat.

Good Luck