How to choose WHERE to invest in?

Question

Hello BP,

I am from California and looking to take advantage of the higher wages here in LA to invest in out of state properties.

The problem I'm having is how to decide WHERE that will be done?

How did some of you decide where you eventually bought property?

I am looking for buy and hold properties but also would like to utilize the BRRRR strategies to help raise capital quicker to eventually pour them over to rentals.

Any response / help will be appreciated.

Thank you!!!

Chris Levarek · Answer

@Danny Jimenez Typically you pick sources that research such information and either pay for it or find in free formats. You focus on criteria items such as population growth, unemployment levels, employers, construction growth, median income, etc.

Some sources include :

• IRR
• CBRE
• Marcus & Millichap
• UHUAL Migration Reports
• Bestplaces.net
• City-data.com
• Biggerpockets Insights - as a Pro member.

Here is a post I Wrote in January 2021 https://www.biggerpockets.com/.... If you want to see a more up to date market post, just message me as I just wrote a blog on it. Biggerpockets will often remove posts if you link to an external source so, I can't post here unfortunately.

Frank Rodrigues · Answer

There are a lot of great markets out there (there are no Holy Grail) and there is always another deal, ultimately it's about getting started with a property that matches your goal more so than the geography of it. I have portfolios in the KC and OH markets. If you want to see what those look like PM me. I hope that helps and best of luck!

Max Gradowitz · Answer

Consider the central valley. The Los Angeles area in general is insanely expensive and even though rents are high, they are not high enough to justify a good investment. But just a few hours north there are small cities and rural towns where it is really cheap to buy and rents are high enough to make good cash flow.

Grigory Pekarsky · Answer

Real estate investing can be intimidating to newcomers, especially if you are starting out with little or no money in the bank. What is important when choosing WHERE to invest in real estate? Should you buy a house or rent an apartment? How do I get started finding good deals on properties that fit my budget and still offer room for appreciation? It's questions like these that often leave you wondering where they should start when it comes to this exciting investment opportunity.

Asking yourself "WHERE" to begin your search for property investments can help narrow down your options and allow you time to prepare financially before making a purchase.

Single-Family Homes are among the most popular types of real estate investment type for a variety of reasons. They offer a lot of privacy and a feeling of seclusion, which is something that many people love, especially if they have families or simply enjoy being alone. You can also tailor your living space to fit your personal tastes, since you aren't sharing it with anyone else. In addition, you'll have up-close access to nature in your own backyard - providing you with beauty and inspiration just steps from your front door! Also, many homeowners take great pride in their yards and gardens as well as keeping up with general exterior upkeep such as painting or staining fences and decks.

Danny Jimenez · Answer

Hey @Chris Levarek

Thank you for for listing a couple of resources to find some locations.

Ill be using your link to help me focus in on some markets and see if they fit what I am looking for.

And I'm also open to checking out the other Blog as well.

I will PM you shortly!

Danny Jimenez · Answer

@Max Gradowitz

Hmmm I never bothered checking in Ca up north.

ill take a look at those areas to see if they fit within the current budget I have for an all cash buy.

@Frank Rodrigues Nice! ill send you a PM shortly!

@Dan Portka no way! congrats on current contract!

That seems I might try out to get started on combing through markets for potential deals.

If you don't mind, Ill PM you shortly!

Dan Portka · Answer

hey @Danny Jimenez I'm doing some out of state BRRRRs from Los Angeles at the moment. Just got my 5th one under contract yesterday :) I originally decided where to invest by coming up with a short list of popular markets for out of state investors based on price to rent ratios, landlord laws, taxes, and job & population growth. I narrowed it down to 2-3 markets and then started networking with agents, PMs, and investors and ended up choosing the market where I liked the team the most. Hope this helps, feel free to reach out any time!

How to choose WHERE to invest in?

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