Picking a cashflow market to scale

[Vasyl Levchenko]

Hello community,

I am evaluating some cashflow markets that I am interested in and would like to share my findings and thoughts on the subject and listen to your feedback. Critiques are encouraged as this is a combination of research and personal opinions.

I'm based in Chicago, own 2 properties(6 total units), really discouraged to invest in Chi because of anti landlord policies, rising crime and taxes etc. Currently debating between 4 options:

1. NW Indiana(Hammond, Portage, Lake station).

Cons - Low appreciation, less options for pm and contractors, population loss.

Pros - Close proximity/more control, landlord friendly, less competition, low prices, decent housing stock(small MF), predictable taxes.

2. Cleveland, OH and suburbs

Cons - High crime rate and unemployment will result in property tax increases over time, tenant friendly, population loss from Cleveland proper. Relatively high competition, seems to be a problem to find good pm. Suburbs have high taxes.

Pros - a lot of big developments, great cultural life, cheap properties, great housing stock(a lot of small and medium size MF) suburbs offer solid class B for low price, good appreciation.

3. Cincinatti, OH

Cons - very high crime, a lot of inequality - taxes are going to go up, tenant friendly leaning housing council, somewhat competitive, population loss over time.

Pros - Some development going on, good apprectiation, low prices, can diversify in Kentucky/other bank of the river, good housing stock(Has some small/medium MF)

4. Indianapolis, IN

Cons - too hot/very competitive, no housing stock(mostly SFR).

Pros - high appreciation, close proximity, low prices, landlord friendly, stable taxes, population gain.

5. Jacksonville, FL

Cons - too hot/very competitive, no housing stock(mostly SFR), high insurance costs.

Pros - Great appreciation, relatively low prices,

Population gain, landlord friendly, desirable sun belt, landlord friendly, predictable taxes.