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Updated 11 months ago, 02/08/2024
Newbie looking for advice! Fort Worth, Phoenix or Durham (NC)?
Hello everyone, my name is Kay. I'm new to investing. For the past few weeks, I have read many posts on BiggerPocket and learned so much about real estate. Thank you so much for sharing your knowledge and wisdom.
I'd like some advice on where to buy my next investment property using a DSCR loan. Right now, I'm house hacking - owning a three-family house in NYC and renting out the other two units. I want to buy an investment property out of state, and I'm considering Fort Worth, Phoenix, or Durham (NC). I plan on moving to the West Coast in the next 2-3 years, so considering that, I'm leaning towards Fort Worth or Phoenix only because my goal is to keep investing and buying properties, and it'd be easier if I lived nearby. What do you guys think about those places? I'm still very early in the buying process, so I'm open to all suggestions (I hear good things about Waco, Texas?)
Since this is my first time buying an investment property, I also wanted to get your feedback on my thought/research process and know if I'm heading in the right direction. This is what I have done so far in terms of the research on the area:
- - I looked up the rent on Rentometer and Zillow.
- - Did a quick city search on Areavibes. Looked at the job market and medium incomes.
- - Looked at a few properties on Zillow, plugged the numbers into a DSCR calculator, and calculated the Cap rate.
- - Looked at the property tax. I learned that Texas has the highest property tax and Arizona has the lowest. Does this play a huge role in - buying investment properties?
- - My next step would be talking to lenders and realtors in all three cities to understand the current market better.
I'm also thinking it might be better to buy near hospitals/universities/tech companies/factories.
Am I missing anything, or is this typically the research one should do before buying an investment property?
Any help is appreciated!