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Updated over 11 years ago, 05/04/2013
Enter into a larger hot market or a smaller market that has not picket up yet?
Hi all -
As we've seen, a lot of the larger cities are heating up (or are hot) and have become seller's markets. However, I'm finding some small to mid-sized cities still have a lot of inventory available and are not as competitive.
Granted that the smaller cities will probably not have as much appreciation or boom as the larger cities, is it better to buy in these before they heat up, or try to get in on a larger market before it gets even higher? Do you think smaller cities will begin to appreciate as well (granted there are a lot of factors in saying that and no one can predict, but based on what is happening nationwide).
It also seems that in the larger markets, you would most likely need more capital/cash on hand, and a fast-moving team already in place to be successful. The smaller market, since it's not as competitive would not have these barriers to entry. The larger "hot" cities now seem better for rehabs/flips, with the smaller cities better for buy/hold. Am I thinking about this incorrectly?
I own two rentals in the Midwest in mid-sized cities, and flipped a house in Sacramento but am not accustomed to this feeding frenzy I'm seeing in a lot of cities. Specifically, I'm looking at Denver (because I wouldn't mind relocating there, but I've read it's extremely competitive) and some smaller cities in the vicinity of Chicago (markets have not yet heated up and I'm familiar with the area).
Thanks!!