Rental Real Estate Markets 2019

[Tracy Schulz]

Last year I cashed out my one and only rental property. I am looking to invest in areas of the country with better numbers than here in California, so I’m open to most of the country. With markets slowing in my area, I feel that I have some time to do some research and team building before I build my portfolio. I just need a market that meets my needs. 

My ideal market would have low housing prices, some local growth, and decent rents. The kicker is I’m uncomfortable with high crime areas and prefer mid sized towns and smaller cities. Does this wonderland market exist?  I’ve already done some looking and helped someone purchase three rentals, but I’m wondering if I should look elsewhere first. Can anyone recommend an area to research or people to contact as I start building my team?

Thank you.

[Stephen Krzyzak]

I was in a similar situation several years ago.  I was living in Chicago and really could not afford a substantial down payment to really cash flow in that market.  I decided to move my money to Indianapolis for the following reasons

1.  The economic development group in Indianapolis is aggressive.  This can be seen recently with how competitive Indianapolis was for Amazon HQ2.

2.  There is a good balance between blue and white collar jobs in Indianapolis.  Losing 1 company that calls the city home will not cripple the Indianapolis economy.

3. There are plenty of property managers to choose from, being an out of state investor, that is important.

4.  Housing prices were low and rents allowed substantial cash flow.  

I have been an out of state investor in Indianapolis for several years.  I am pleased with the cash flow and appreciation that I have realized.  If you do your research and decide you want to explore Indianapolis further, I can recommend you to some people to help you get started.