favorite markets for new investors out of state?

[Erik Ped]

just reaching out looking for markets that aren't oversold and over bid. Im looking to invest out of state any suggestions? im paticularly interested in college / university towns.  Thank you for any input.

cheers

E

[Joe Hammel]

Metro Detroit Market with some large generalizations, ballparks and assumptions. (anticipating the backlash with the #Detroit flag)

A Markets: sub 1% deals $250k-$1m price point, 6% cap, not a lot of cash flow but not really the strategy in these markets anyways.

B Markets: 1%-1.3% deals $115-$200k, decent cash flow, beating $100/door rule and can get up about $200-$300/door. Price/rent ratio heading right direction

C Markets: 1.3%-1.9% deals $60k-$115k price points, nice cash flow, $200-$400/door. Solid Price/rent ratio.

With just about everything in between. The B- to C+ blend is a sweet spot in the suburbs.

Not a ton of Multifamily inventory but they're out there to add to your portfolio. 1%-1.5% deals usually. We're Inventory stricken at the moment like every other market but feel we at least have more attempts than other national investor markets.

Lansing, Ann Arbor, Lansing, Downtown Detroit are our "college towns" but seems a lot of people have your idea and prices a bit more inflated. We like Metro Detroit Suburbs for the ROI/Cash flow balance most prefer - and stick our toe in Detroit when it makes sense.