What market should I go to next?

Question

Hi,

I'm I've been a landlord in the NYC area for 20 years.  NYC is a bubble that I've been fortunate to be in.   I own a small 4 unit mixed use residential/commercial building in a desirable area of Manhattan.   Just going with the dynamics of my situation, I feel it is a good window for me to sell and exit the NYC market via a 10-31 exchange.    Where should I go next?     Thanks everyone for their time.

Best,

Roger

Pete Schmidt · Answer

I agree if you are talking about home owner sales or vacation rentals. The tough spot is for the BRR investors, since the places around are selling at prices a homeowner will pay and not at a price for an investor to make money. A lot of people are relocating down here from up north due to the nicer weather and lower taxes. They can sell a 1200 sqft home up there and buy a 5000 sqft here and still have money left over. To find places cheap enough that you can rehab and then price low enough for the jobs pay around here lies the problem. A lot of these multi family places are also so run down, that a lot of times it would be cheaper to build new. That being said, they are out there, but nowhere near what they were 3-4 years ago.

Anthony Angotti · Answer

@Roger Roth there are deals in Pittsburgh where I am. A good mix of 2-4 units and small MF apartments. I think once you figure out a few different markets you just want to interview potential team members in those markets and work on building out that base. Are you looking primarily for cash flow then on the properties that you acquire?

Joseph Labetti · Answer

Myrtle Beach seems to be an opportunity for everyone who missed out on Miami back when it was up and coming.  Realtors are moving properties quick.  Time shares are booked months in advance, Hotel costs are up and taxes are low.  Home prices are beginning to reflect the demand.  Definitely something to look into and as Myrtle beach fills the neighboring towns will begin to grow as well.  you may feel more comfortable finding a multi right outside the Myrtle property line. Good luck!

Doug Phillips · Answer

From Cincinnati myself, and the areas around me are crazy getting built up- add the Bid we just won for a new MLS stadium to be built/completed by 2021 and things are getting pretty hot here.

Tom Ott · Answer

Cleveland is a great way to go right now! Low midwestern prices with a nice ROI!

Gina Smith · Answer

I keep hearing Midwest and I live here but I still can't figure out where to invest!

Larry Fried · Answer

@Roger Roth If cash flow is your goal, it is primarily the midwest cities now, and there are any number of them.  Just depends what you are looking for.

Roger R. · Answer

Anthony,

I'm interested cash flowing  properties more than ones that appreciate like NYC.    After dealing with low cap rates in NYC, i'd like to find something that pays out a little better.   Any place can be a better tax climate

Roger

What market should I go to next?

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