Best kept secret rental market?

[Marco Morkous]

Looking for a rental but markets are so hot. Especially the lower price point markets. Louisville, Memphis, Birmingham, etc.

any ideas about a best kept secret? Low price point, high cash flow, little competition?

[Lindsay Davis]

Outside of massive regulatory interference- like you get in a city like Portland, OR, or Berkeley, CA, you can make good money in most markets- and to be fair- there are plenty of people making money in those markets as well. It really comes down to your risk tolerance, ability to spot individual deals, and your investment goals- are you looking for cashflow or a quick flip?

How much are you planning to invest? Of that how much is financed? What’s your desired level of involvement- i.e. are you looking for turnkey properties that save time and provide steady cashflow or are you looking for a property that needs more involvement?

I’d say stop searching for “the perfect market” and try and find the perfect team. With that being said, we like several regions in the south- offering diverse employment bases, growing populations, and relatively low entry costs. You should also consider looking at areas with new construction activity, as other developers/builders/real estate stakeholders have done the research for you- and found that they’re likely to make a profit in a given area.

I’d read more about Tuscaloosa, Birmingham, and Huntsville- but really the entire South/Southeast meets your criteria- you just need to find the right property!