best city to invest right now in the US

Multi-Family and Apartment Investing
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best city to invest right now in the US

Dany Tremblay
Real Estate Investor · Montreal, Quebec · Member since 2012 · 4 posts · 0 votes

Hi everyone,

I would like to know wich city is your best city to invest right now in the us.

On my part I just bought a foreclosure house in Charlotte, NC 3 beds 2.5 bath with a car garage built in 2000 for 50 000$. This house will rent for 950$ per month, so cash flow will be great. I also like Phoenix got 5 home there and cash flow is is above 10% for all the house, And what I like is that they are all houses built after 2000.

The only problem for me is that I am Canadian, so I have to pay cash for all my property.... So I can't buy as much property as I what.

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Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
14y

Dany Tremblay - I am a fan of Dallas, TX. and Memphis, TN. for several reasons. I'm also coming around to Atlanta and Nashville. I like to look at financially strong markets - economic numbers of a market are very important to me.

Dallas - It's the 4th largest MSA, strong financial statistics and a growing population. Dallas continues to be one of the strongest job creation markets in the country. Dallas has multiple industry providers, and a stock of affordable housing with good demand. Risks are growing fiscal demands on infrastructure, but the state and local governments have shown they are not scared to meet demand. Dallas, IMO, is stronger than both Houston and Austin from an economic viewpoint which should have higher consideration when investing from out of area.

Memphis - 17th largest MSA in the country with strong financial ground work and consistently ranked as one of the most affordable cities in the U.S. Memphis was recently highlighted as #3 in the U.S. in terms in new job creation in 2011. Economy is built on transportation and distribution and is built around the 2nd largest cargo airport in the world. Risks are the fact that many price points are extremely low and that is an attractor for investors without knowing the risks.

Return numbers are going to be strong in many markets around the country, but IMO, as an out of area investor, finding markets with strong economic outlooks is vitally important. Finding high quality individuals/companies to work with is very important and investing for "VALUE" not price is the key to success. Looks like you are already finding some great value for your money. TO your continued success!

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    Welcome to BiggerPockets, Dany. Your question about the "best city" is hard to answer. Are you interested in maximum casH flow? Does appreciation or quality neighborhood come into play? How important are they?

    I'm in Texas and there is good opportunity here with relatively cheap prices, better economy, better job and population growth, and a pro business environment. We probably won't see the best appreciation, though.

    0Reply
  • Mike Jakobczak
    Real Estate Investor · Toronto, Ontario · Member since 2010 · 413 posts · 114 votes
    14y

    Dany Tremblay Nicely done. There's great buys in Atlanta metro area. But very competitive, like anywhere else I can imagine.

    Not much banks out there that work with Canadians. I know Washington Federal had a program that was catering to Canadians. I can forward the info if you haven't looked into them yet.

    0Reply
  • Dany Tremblay
    OP
    Real Estate Investor · Montreal, Quebec · Member since 2012 · 4 posts · 0 votes
    14y

    Thanks Mike and Jon,

    Texas and Atlanta is on my target list places whre I whant to buy.

    Mike what do you think of Riverdale, good or bad? Prices are amazing there. And Jon which city is the best in Texas? Is it Austin or Houston?

    On my part what I like to buy is single family house, built after 2000, price below 80k. I always buy foreclosure, I put the place rent ready and when its rented I let it go and buy another one. Net cash flow target is 10 to 12%. I prefer to be in that range and have a better looking property than having 17% cash flow or higher and have an hold property (with its suprises) in a area with low prospect. I am curently in Arizona (Phoenix) and North Carolina (Charlotte), but seeking to diversify.

    0Reply
  • Mike Jakobczak
    Real Estate Investor · Toronto, Ontario · Member since 2010 · 413 posts · 114 votes
    14y

    Dany Tremblay Yea Riverdale has some cheap property. It's near the airport so I've only really driven around it. I'd suspect it has it's good and bad areas like any other place.

    Lots of investors shop around in Decatur and Stone mountain. But I'd suggest to definitely do your research since some areas aren't worth the hassle.

    0Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    14y

    Dany Tremblay - I am a fan of Dallas, TX. and Memphis, TN. for several reasons. I'm also coming around to Atlanta and Nashville. I like to look at financially strong markets - economic numbers of a market are very important to me.

    Dallas - It's the 4th largest MSA, strong financial statistics and a growing population. Dallas continues to be one of the strongest job creation markets in the country. Dallas has multiple industry providers, and a stock of affordable housing with good demand. Risks are growing fiscal demands on infrastructure, but the state and local governments have shown they are not scared to meet demand. Dallas, IMO, is stronger than both Houston and Austin from an economic viewpoint which should have higher consideration when investing from out of area.

    Memphis - 17th largest MSA in the country with strong financial ground work and consistently ranked as one of the most affordable cities in the U.S. Memphis was recently highlighted as #3 in the U.S. in terms in new job creation in 2011. Economy is built on transportation and distribution and is built around the 2nd largest cargo airport in the world. Risks are the fact that many price points are extremely low and that is an attractor for investors without knowing the risks.

    Return numbers are going to be strong in many markets around the country, but IMO, as an out of area investor, finding markets with strong economic outlooks is vitally important. Finding high quality individuals/companies to work with is very important and investing for "VALUE" not price is the key to success. Looks like you are already finding some great value for your money. TO your continued success!

    Podcast Guest on Show #224
    REI Nation4.578 Reviews
    WebsiteView Page
    1Reply
  • Dany Tremblay
    OP
    Real Estate Investor · Montreal, Quebec · Member since 2012 · 4 posts · 0 votes
    14y

    Hi Chris,

    thanks for all the infos it will help.

    Dany Tremblay

    0Reply
  • Thomas Salomone
    Developer · Las Vegas, NV · Member since 2011 · 12 posts · 1 vote
    14y

    Dany Tremblay Great work on your current investments! Sounds like you have your cash flow exactly where you want it.

    As far the "best city" to invest in that's a difficult question to answer. My market, Las Vegas, has incredible deals at the current time but our inventory is at an all time low. I suggest not trying to narrow it down to an individual city but rather to try to find the best deals possible from a plethora of different cities.

    Good luck with the search!

    1Reply
  • Naga A.
    Investor · Atlanta, GA · Member since 2010 · 186 posts · 14 votes
    14y

    On contrary to some other people here, I am of an opinion that you should pick a market and focus your resources there rather than trying to find the "best deals" in the country.

    If you are out of state investor (like myself), it is so easy to be taken advantage of by unscrupulous agents. I would say study the market and know the right people in the market, that would help you to eliminate such agents.

    0Reply
  • McKellar Newsom
    Real Estate Investor · Chattanooga, TN · Member since 2009 · 191 posts · 47 votes
    14y

    I agree with Naga A. You get economies of scale if you focus in one or 2 areas. When I started buying out of state, I bought in 5 locations and have since sold in certain areas and have begun focusing in 3. If I were to do it all over again, I'd focus on 2. It's nice to have your property management reports centralized.

    Focus on states that are pro-business and less lawsuit happy. Good luck. mck

    0Reply
  • Michael Lauther
    Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    Dayton Ohio is an excellent market for investors seeking extroadinary positive cash flow and are not focused on future appreciation. As in any city it is critical to get to understand the makeup of each community to determine if your exit strategy matches the demographics of the community. If your exit strategy is to buy, rehab and sell to an end user then your demographics should indicate a high percentage of home ownership. If it is to buy and hold for rental income than there needs to be a strong rental market and in most cases good public transportation.

    An example of the type of cash flow possible in Dayton is a property that I recently purchased in zip 45403. It was a cash purchase for 18,000 with $2000 in cost to remedy deferred mainenance. This is a 3 bedroom 1 bath property with central air and is a section 8 rental for 625 monthly ( rent increase pending)or $7500 a year. Taxes are $970 and insurance is $600. If I use the 50% rule to estimate future costs this would leave $3750 in net income for a cash on cash return of 18.75%. While I am not focused on appriciation, these properties should increase in value as the economy strenghens.

    I believe Dayton is an outstanding market for my particular strategy. That is to invest in properties that offer significant cash on cash return in the form of income and stable value with potential for moderate appreciation.

    1Reply
  • Eduardo A.
    Sandy Springs, GA · Member since 2011 · 126 posts · 31 votes
    14y

    Dany Tremblay One of the reasons Riverdale property prices are so low is because the Clayton Co. school system lost their accreditation back in 2008, they regained their accreditation but the prices have not recovered.

    0Reply
  • Naga A.
    Investor · Atlanta, GA · Member since 2010 · 186 posts · 14 votes
    14y

    Eduardo Austin What is the implication of this for investors?
    A good opportunity because the price went down so much? Or, investors should avoid properties in Clayton Co. because people avoid the school district (as a result, it is hard to rent?)

    0Reply
  • Naga A.
    Investor · Atlanta, GA · Member since 2010 · 186 posts · 14 votes
    14y

    Eduardo Austin What is the implication of this for investors?
    A good opportunity because the price went down so much? Or, investors should avoid properties in Clayton Co. because people avoid the school district (as a result, it is hard to rent?)

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    There really is no correct answer to this question because it depends on many, many factors. I do think Austin is a place worth looking though. There is going to be a lot of money made here in the coming decade!

    0Reply
  • Eduardo A.
    Sandy Springs, GA · Member since 2011 · 126 posts · 31 votes
    14y

    Naga A. I would think now that they have their accreditation back that it would be a good opp for investors looking at buy and hold. There is one risk, Clayton schools do have their accreditation back but they school district is not one of the best.

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Here are the top cities for job growth:

    Top Cities For Job Growth

    5 of the top 10 are in Texas.

    0Reply
  • Account Closed
    Real Estate Investor · Member since 2012 · 189 posts · 32 votes
    13y

    Top 21 most leveraged areas for RE Investing...
    Season's Greetings!

    For the past 6mos or so, I've been actively pursuing real estate investing - specifically in the so cal market.

    In my pursuit, I've been geekishly testing a range of data/analytical models for evaluating real estate from the national to county to city to zip code, neighborhood, and even .25mi radius search (and neighborhood block) levels! I've only recently begun pulling my head out of the data and really putting my hypotheses and data models to the test in the real world - so far, with positive results.

    Anyway, i was recently playing with the numbers from various sources, and I put this together for those of you who may be curious about what areas/markets based on real data may be the "most bang for the buck" areas to invest in. My criteria for determining this was simply: "gimme the areas with the lowest unemployment rate; the areas with highest rental rate, the areas with low price-to-rent ratio"

    the table should be pretty self-explanatory (of course, to me at least! :) )... i've shared this on my dropbox...

    This table is intended to identify the most leveraged areas to buy and rent...(and i suppose to buy and flip). I did not optimizefor best areas to buy and flip. This lists the top 21 areas in the country. Keep in mind, however, that you still have to target best cities (or even zip codes/neighborhoods) in the metros listed to invest in.

    NOTE: This is my first attempt to determine "best bang for your buck" areas to invest. I do plan to update my approach and I'm also open to any constructive feedback to consider in revising this list.

    here's the shortcut link to the file:
    http://bit.ly/U81fXi

    Please feel free to let me know if there's any assumptions missing, in question, OR if you just have any questions.

    Hope you find this analysis useful!

    -Kelvin

    p.s.
    get dropbox here:

    http://db.tt/ESVQYeX

    it's a best in class tool for collaboration & data sharing if you don't have it already. (FYI) this link gives me bonus space for my account .. would appreciate the bonus space if you choose to use dropbox!

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Linked http://bit.ly/U81fXi

    1Reply
  • Account Closed
    Real Estate Investor · Member since 2012 · 189 posts · 32 votes
    13y

    Hmmm... i'll do a revision on this chart in the next week or so. I've also included a table of states that show eviction policy in effect... basically, landlord friendly vs. tenant friendly states. my next "best place to invest" chart will take this into consideration as well as a few other factors.

    here's the link for landlord vs. tenant friendly states:
    http://bit.ly/UgG59f

    hope this helps!

    0Reply
  • Bruce Thomas
    Oklahoma City, OK · Member since 2011 · 57 posts · 9 votes
    13y

    Nice to see Oklahoma City in the top 50 compared to last year.

    http://www.newgeography.com/content/002792-all-cities-rankings-2012-best-cities-job-growth

    0Reply
  • George Paiva
    Investor · Milford, CT · Member since 2012 · 592 posts · 285 votes
    13y

    I believe it all depends on what you're trying to achieve. Flip, RTO, or Buy & Hold.

    Personally I focus on Population Trends from the Census and Employment Trends from Bureau of Labor with support with 3rd party analysis. I cross reference them and narrow down to a select few states and cities.

    Like others mentioned once you narrow down to a few locations you need to study all aspects of that market to fully understand the in's and out's.

    This might seem a bit overwhelming and why most just chose to invest in their backyard.

    0Reply
  • David W.
    Pasadena, CA · Member since 2013 · 8 posts · 0 votes
    13y

    hi guys how about FL? is it a good place to invest in RE? Tampa area, Orlando, Miami etc. thanks guys

    so sounds like some of the better cities to invest in RE are Dallas, Austin, Houston, Vegas, AZ etc...is it because those cities dropped the most after 2008?

    However for TX why is it a good place to invest in? land is vast there and RE there appreciate very little, like 1 to 3% before 2008, and about the same after 2008. Law does favor landlords in TX that's a big plus. And there are a lot of jobs/work and also people moving in I guess. But man RE there they appreciate very slowly.

    0Reply
  • Justin Stamper
    Investor · Orlando, FL · Member since 2012 · 822 posts · 303 votes
    13y

    @David W.

    I think Central Florida is a great place to buy and hold because there are so many service industry people who do not qualify for loans to purchase a home so there is always a super high demand for rentals.

    0Reply
  • David W.
    Pasadena, CA · Member since 2013 · 8 posts · 0 votes
    13y
    Originally posted by Justin Stamper:
    @David W.
    I think Central Florida is a great place to buy and hold because there are so many service industry people who do not qualify for loans to purchase a home so there is always a super high demand for rentals.

    How about the hurricanes? headache that hurricanes come every year and you have to worry it will damage your houses and tenants.

    Why is there always a super high demand for rentals? tourists? so any other reasons for investing in FL? I think FL RE didn't go up much huh? unemployment sill high and inventory still quiet large? good for us investors. (also I ain't in FL now, was overseas for awhile now, and should be moving back soon)

    0Reply
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