In which city would you start your rental property empire?

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In which city would you start your rental property empire?

Matthew Ruderman
Flipper/Rehabber · Mahwah, NJ · Member since 2020 · 19 posts · 21 votes

Deciding which city to buy my first property as I'd like to remain in the same area for a long time for many benefits. I hear Charlotte, Orlando and Vegas are popular!  What is your vote?

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Ujwal Velagapudi
Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
6y

I started mine in Detroit. But I think if I had to re-do it today, for a city I'd stay in long-term, I think I'd lean towards Austin.

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  • Ujwal Velagapudi
    Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
    6y

    I started mine in Detroit. But I think if I had to re-do it today, for a city I'd stay in long-term, I think I'd lean towards Austin.

    13Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    They are all good, just find the right deal. I started in San Mateo Ca.

    6Reply
  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    6y

    @Matthew Ruderman I say Orlando but I am partial to the area since I live here. 

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    4Reply
  • David P.
    Member since 2020 · 404 posts · 235 votes
    6y
    Originally posted by @Bjorn Ahlblad:

    They are all good, just find the right deal. I started in San Mateo Ca.

     My hometown. Crazy expensive now though. Left before the Dot com era and wish our family had stayed. You can't find anything there now over a million now. 

    0Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @David P. we had a rental west of El Camino, prices were OK in the late 1970's. Then hi-tech came in big and the area went nuts! Don't know if I would start there today, although with the exodus of San Francisco folks it might be a decent time for a flipper.

    1Reply
  • David P.
    Member since 2020 · 404 posts · 235 votes
    6y
    Originally posted by @Bjorn Ahlblad:

    @David P. we had a rental west of El Camino, prices were OK in the late 1970's. Then hi-tech came in big and the area went nuts! Don't know if I would start there today, although with the exodus of San Francisco folks it might be a decent time for a flipper.

     Yea, growing up in bay area during the 80s and 90s I never had the impression it was prime real estate. We lived in redwood shores and we checked our 1400 sqft home and even that is worth 1.8 million now.

    3Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    6y

    I like cash flow, so I started mine in the midwest and am adding properties in the south (after buying two properties in CA in 2012 and 2014, before I was trying to "build an empire"). I'll probably buy more in high prices cities when a significant price correction event occurs.  Timing market phases for your strategy + buying right are your keys to success. 

    8Reply
  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    6y
    Originally posted by @Matthew Ruderman:

    Deciding which city to buy my first property as I'd like to remain in the same area for a long time for many benefits. I hear Charlotte, Orlando and Vegas are popular!  What is your vote?

    One thing to remember is the way you finance a property makes a difference. If you have down payments and can qualify for loans then maybe invest in anywhere is fine. If you are seeking owner financing it could be better to be in person when negotiating and that means being local to where you are. 

    2Reply
  • James Mc Ree
    Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 935 votes
    6y

    For you, Mahwah, NJ.  Stay local when you are starting out.  It is much less risky.  Buying at a distance and turning the property over to a property manager with no personal real estate experience is putting a lot of your hope on a lot of different things going right.

    7Reply
  • Michael Marrero
    Investor · Staten Island, NY · Member since 2020 · 20 posts · 12 votes
    6y

    @James Mc Ree I’m currently researching various cities in NJ to present to my partner. Never considered Mahwah. Have any experience there? I was currently looking on the south end towards philly.

    This would be my first property and want to stay somewhat close to home, but being in NYC, the conditions here aren’t ideal for my level.

    1Reply
  • James Mc Ree
    Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 935 votes
    6y

    @Michael Marrero I suggested Mahwah, NJ to the OP because that is where he is from.  The idea was to stay local.  That strategy doesn't work so well for someone who can't afford to invest where they are or the properties just don't cash flow.  That could be a problem in Staten Island, NY.  I don't know either location.

    1Reply
  • Ian Gorman
    Member since 2020 · 11 posts · 8 votes
    6y

    @Tyler Gibson - Orlando is poppin! Unsure where you could find a <150k house unless it's around some rough areas, however.

    3Reply
  • Michael Marrero
    Investor · Staten Island, NY · Member since 2020 · 20 posts · 12 votes
    6y

    @James Mc Ree I totally missed OP was from Mahwah! My fault. Yes for sure Staten Island does not cash flow at all! You could flip here, but the cost of entry is very high, and it’s very competitive. I’m going to keep checking NJ. Cheers

    0Reply
  • Account Closed
    Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
    6y

    @Matthew Ruderman where I lived if I could make the numbers work at all.

    1Reply
  • Matthew Ruderman
    OP
    Flipper/Rehabber · Mahwah, NJ · Member since 2020 · 19 posts · 21 votes
    6y

    @Michael Marrero if you need an agent in jersey I’m your guy!

    0Reply
  • Matthew Ruderman
    OP
    Flipper/Rehabber · Mahwah, NJ · Member since 2020 · 19 posts · 21 votes
    6y
    Originally posted by @James Mc Ree:

    For you, Mahwah, NJ.  Stay local when you are starting out.  It is much less risky.  Buying at a distance and turning the property over to a property manager with no personal real estate experience is putting a lot of your hope on a lot of different things going right.

    The problem with my area is north jersey is more expensive and typically doesn't cash flow well.  I would love to stay in my area and if I do find a deal that works then I will.  But to be consistent in one area is my goal right now.

    0Reply
  • Juan Pardo
    Member since 2020 · 201 posts · 118 votes
    6y
    Originally posted by @David P.:
    Originally posted by @Bjorn Ahlblad:

    @David P. we had a rental west of El Camino, prices were OK in the late 1970's. Then hi-tech came in big and the area went nuts! Don't know if I would start there today, although with the exodus of San Francisco folks it might be a decent time for a flipper.

     Yea, growing up in bay area during the 80s and 90s I never had the impression it was prime real estate. We lived in redwood shores and we checked our 1400 sqft home and even that is worth 1.8 million now.

     How much was the average home there in the 90s, before dotcom times?

    0Reply
  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 633 votes
    6y

    @Matthew Ruderman, a couple items I look at which are transportation and job growth as factors to steady to strong rentals. Also, I look at the lending capabilities in the Region, are there strong options in my buying power and banking relationships. Regards, Joe Scorese

    3Reply
  • Moises R Cosme
    Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes
    6y

    Charlotte gets my vote.  

    3Reply
  • Megan Brooks
    Rental Property Investor · Fort Lee, NJ · Member since 2019 · 82 posts · 22 votes
    6y

    @Matthew Ruderman what about buying a 2 or 3 family and house hacking in NJ?

    0Reply
  • Matthew Ruderman
    OP
    Flipper/Rehabber · Mahwah, NJ · Member since 2020 · 19 posts · 21 votes
    6y

    @Megan Brooks great idea but my wife and I aren’t interested in going that route. Definitely have thought about it.

    0Reply
  • Megan Brooks
    Rental Property Investor · Fort Lee, NJ · Member since 2019 · 82 posts · 22 votes
    6y

    @Matthew Ruderman oh yea, understandable. I wouldn't really want to do that either but didn't realize you were married. I would stay local for my first one, just venturing to a different state now for my 4th buy and hold. Perhaps look in Passaic county vs Bergen?

    0Reply
  • Scott McCord
    Real Estate Agent · Austin, TX · Member since 2018 · 5 posts · 3 votes
    6y

    @Ujwal Velagapudi Austin is a great town and growing fast. Property taxes are the thing to watch out for. I’m a local Realtor in Austin - let me known if you’d like to chat about investment properties. Always happy to help & run the numbers 👍 - Scott McCord

    3Reply
  • Matthew Ruderman
    OP
    Flipper/Rehabber · Mahwah, NJ · Member since 2020 · 19 posts · 21 votes
    6y

    @Megan Brooks that’s what I was thinking! Nice to talk to someone else around the area as you know how expensive Bergen is. Maybe Passaic and other counties more central jers

    1Reply
  • George W.
    Investor · NJ · Member since 2018 · 869 posts · 921 votes
    6y

    I personally avoid a "city" I like smaller towns in South and central Jersey. Get away from nyc and numbers start making alot more sense. 

    I'm from a relatively small town thats 20 minutes away from a bunch of larger ones. Granted that has some drawbacks but its also got some perks. 

    1Reply
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