Which city rental market is better? Tampa, Charlotte, Columbus

[Judy Wang]

Hi BP community,

Disclaimer: I know each city has its advantages and disadvantages. I am comparing them solely based on their rental return and potential appreciation. I love all three cities. ><

I plan to purchase an investment property, a duplex or SFH. The house price is $200k-$300k. I am looking for cap rate exceeds 6%. Since I am in CA, local property management fee has been considered.

After talking with several realtors, I have narrowed down my choices in the following 3 cities:

1, Tampa, FL

2, Charlotte, NC

3, Columbus, OH

For 1, FL is a hot market right now and I believe that this hot trend will continue. Tampa is always in the list of investors. Given the numbers my realtor provided, duplex is over 300k but cap rate is only 5.5-6%. My concern is that the price has already been high but the rent hasn't increased up accordingly. 

For 2, I just personally feel very interested in. I haven't seen any big boom in Charlotte house market. The cap rate there could exceed 6%, probably 6.5%. However, I am concerned that the city growth potential and how rental market really is there.  

For 3, I know Ohio State is there and this big university can boost a good rental market. The property tax here is highest among the three. The campus nearby area is hard to find good deal. Hasn't ran out a cap rate figure but I am not sure it can reach 6%. 

I have never been to these 3 cities before, so I have no first-hand experience in these cities. Given the pandemic, I probably couldn't fly there to do on site visit (I know this is the best way to know a city). Wanna hear more local people's voice and have more straightforward view of the cities' development. 

Any opinion is welcome!

Thanks

Judy

[Remington Lyman]

Originally posted by @Judy Wang:

Hi BP community,

Disclaimer: I know each city has its advantages and disadvantages. I am comparing them solely based on their rental return and potential appreciation. I love all three cities. ><

I plan to purchase an investment property, a duplex or SFH. The house price is $200k-$300k. I am looking for cap rate exceeds 6%. Since I am in CA, local property management fee has been considered.

After talking with several realtors, I have narrowed down my choices in the following 3 cities:

1, Tampa, FL

2, Charlotte, NC

3, Columbus, OH

For 1, FL is a hot market right now and I believe that this hot trend will continue. Tampa is always in the list of investors. Given the numbers my realtor provided, duplex is over 300k but cap rate is only 5.5-6%. My concern is that the price has already been high but the rent hasn't increased up accordingly. 

For 2, I just personally feel very interested in. I haven't seen any big boom in Charlotte house market. The cap rate there could exceed 6%, probably 6.5%. However, I am concerned that the city growth potential and how rental market really is there.  

For 3, I know Ohio State is there and this big university can boost a good rental market. The property tax here is highest among the three. The campus nearby area is hard to find good deal. Hasn't ran out a cap rate figure but I am not sure it can reach 6%. 

I have never been to these 3 cities before, so I have no first-hand experience in these cities. Given the pandemic, I probably couldn't fly there to do on site visit (I know this is the best way to know a city). Wanna hear more local people's voice and have more straightforward view of the cities' development. 

Any opinion is welcome!

Thanks

Judy

 I would personally pick Columbus, Ohio over the other two

[Luke Rorech]

@Judy Wang Tampa is extremely hot right now but very much a sellers market. Depending on if appreciation or cash flow is more of a priority to you, Tampa may or may not be a good choice for your objectives.

As @Remington Lyman mentioned though, Columbus is a great market and would be my number two behind Tampa.

[Brandon Goldsmith]

Columbus is pretty hot right now, but it all essentially comes down to which city fits your REI the best. @Judy Wang

[Carlos Paz]

Hi @Judy Wang you might have seen this before, Charlotte is ranked by Realtor.com as the best real estate market in the Southeastern U.S. positioned for growth in 2021. The report predicts the Charlotte real estate market will have a combined growth rate of 19.0%, factoring in both sales growth and growth of home prices.

All key metrics are in favor: population growth, job market trends, homes prices on the rise and increase in rent prices. Charlotte real estate market remains very competitive with strong demand and limited supply boosting home prices even higher. 

If your goals is to hold long term rental, this is a great market to invest. 

[Ryan Mainwaring]

I vote with bias opinion for columbus.  If you need someone to chat to about columbus, feel free to reach out

[Zeke Liston]

Originally posted by @Judy Wang:

Hi BP community,

Disclaimer: I know each city has its advantages and disadvantages. I am comparing them solely based on their rental return and potential appreciation. I love all three cities. ><

I plan to purchase an investment property, a duplex or SFH. The house price is $200k-$300k. I am looking for cap rate exceeds 6%. Since I am in CA, local property management fee has been considered.

After talking with several realtors, I have narrowed down my choices in the following 3 cities:

1, Tampa, FL

2, Charlotte, NC

3, Columbus, OH

For 1, FL is a hot market right now and I believe that this hot trend will continue. Tampa is always in the list of investors. Given the numbers my realtor provided, duplex is over 300k but cap rate is only 5.5-6%. My concern is that the price has already been high but the rent hasn't increased up accordingly. 

For 2, I just personally feel very interested in. I haven't seen any big boom in Charlotte house market. The cap rate there could exceed 6%, probably 6.5%. However, I am concerned that the city growth potential and how rental market really is there.  

For 3, I know Ohio State is there and this big university can boost a good rental market. The property tax here is highest among the three. The campus nearby area is hard to find good deal. Hasn't ran out a cap rate figure but I am not sure it can reach 6%. 

I have never been to these 3 cities before, so I have no first-hand experience in these cities. Given the pandemic, I probably couldn't fly there to do on site visit (I know this is the best way to know a city). Wanna hear more local people's voice and have more straightforward view of the cities' development. 

Any opinion is welcome!

Thanks

Judy

 Hi Judy, Columbus, OH is a great rental market. Ohio is a very landlord-friendly state and you can cash flow well in the city. There are big-name companies like Google and Facebook developing in the city.