Cities or neighborhoods under the radar or up-and-coming??

[Nick Fiammetta]

I'm in the "learning" phase of investing and would like to start doing some research city by city. Are there any under the radar cities or up and coming areas that have lots of good inventory?

I live in South Florida (where there's not much inventory under $200k), but would be open to cities like Nashville, Birmingham, Detroit, Central Florida and more.

I would be open to renovating a single fam home and renting it out vs. a flip.

Any advice for a newbie would be appreciated.

[Marc Winter]

@Nick Fiammetta

You may have heard about real estate in Northeast Pennsylvania (NEPA). The greater Scranton area, and the dozen or so smaller towns around it have great investment and cash-flow potential. The market ranges from A to C- areas and is comprised of mostly single family to four-plex properties.

Price points are much lower than on the east or west coasts, however rents are proportionally much higher, leading to positive cash-flow. Example: in NYC, say in Queens, an average 2-family brick house in a C+ neighborhood will cost $800K to $1M. However the rent for a 3-bedroom apartment is about $2K to $2,500. That’s $5k/mo income total.

In and around Scranton, 2-family houses in a C+ area are in the $80--$100K range. Rents for a 3-bedroom apartment are $800--$900. That’s $1,600/mo+. The numbers speak for themselves. To make the same rate of return, the NYC property would have to generate $16k/month. Keep in mind, however, in our area it’s not an ‘appreciation’ play like in NYC or LA—it’s a cash-flow, income producing play.

PM or email me to discuss further.