How to narrow down locations for long distance investing for LTR SFR

Question

Happy hump day to the incredible BP community! My husband and I work in CA Bay Area. We are looking to diversify and expand our real estate portfolio by investing in long-term single-family/duplex rental properties out of state. I came across BP yesterday and overwhelmed with the information and the support/advice I find here, so grateful for this forum!

I have shortlisted a few locations (based on proximity to CA, landlord friendly states, my highly limited knowledge of economy/job/population growth in the areas) - Phoenix, Mesa in AZ; North Las Vegas, Henderson in NV; Greater Austin area, San Antonio in TX, and possibly Roseville/Sacramento CA. Avoiding Florida, Oregon, Mid-west and East coast due to proximity issues etc.

I tend to think a fairly recent construction (year built >2000) and 3-4 bed unit might do well (appeal to maximum # of renters and reduce vacancy %).

Here's where I need help -

1. Narrow down the locations to a couple, based on what can give me positive cash flow, and high occupancy

2. I get lost in govt websites like BLS, Census when I try to track population growth / job growth etc in an area. There are too many numbers & percentages and I'm unsure what they mean. I need to know how to read the data and make a decision with fair confidence. What resources/courses are available for this?

3. How do I go about finding my core team (real estate agent, contractors for repairs etc) when I do this long distance?

4. Validate my thought process, since this is my first time investing in rentals!

Timothy W. · Answer

I hated living in Indiana because nothing ever happens there.  I loved investing in Indiana because nothing ever happens there.  Never had an earthquake, hurricane, tornado, ridiculous hail storm.  It was just blah all the time, which for sitting on a long-term rental is great.  If I learned anything it's make sure you rent to a market that actually cares about protecting their credit.  Beyond that, it's boring, which is good for rentals.  I ended up selling most of my portfolio there to an Israeli hedge fund.  Not what I anticipated but they must have seen something in it.  Most of my stuff was around Notre Dame university.   I figured the power of the Catholic Church would never let that go down.  I should have bought more.  There was a major redevelopment immediately around the University.  Ah well, hindsight.

Jordan Moorhead · Answer

@Divya Prasad I like San Antonio personally, tons of growth and you can still cashflow there. @Aaron Francl on my team is down there too

Richard Trayer · Answer

Hi Divya,I think they say Maricopa County is the fastest growing in the Nation. I could be biased though. Taiwan Semi-Conductor in the North Valley is going to bring a lot of jobs this way. Intel in the East Valley is expanding.Lucid Motors is supposed to be doing something in AZ... and Bill Gates is planning his "Future City" development somewhere out there between where You and I reside.

Hamp Lee III · Answer

Welcome to BiggerPockets!

I’m in the San Antonio area and would love to talk about potential opportunities in this market.

Kevin Bartlett · Answer

Hey Divya, welcome to the community! I'd search on the Location Section for the areas you are looking in on BP to find your core team!

Sloane Kraftsow · Answer

Hi Divya! I would love to help get you started on locations for long distance investing. Let’s connect?

Ricardo Hidalgo · Answer

Panama City Beach has various grant programs aimed at supporting economic development and revitalization. Some examples include:

1 The Economic Development Incentive Program: This grant program provides financial incentives to businesses that create new jobs, increase capital investment, and/or develop new facilities in the city.

2 The Downtown Improvement Grant: This grant program provides financial assistance to property owners and businesses in the Downtown Redevelopment Area for eligible capital improvements to their buildings or storefronts.

3 The Community Redevelopment Area Grant: This program provides funding to businesses and property owners within designated Community Redevelopment Areas to make eligible capital improvements to their properties.

4 The Beach Renourishment Grant: This grant program provides funding to help restore and maintain the city's beaches, which are a critical component of the local tourism economy.

These grant programs can help businesses and property owners in Panama City Beach access the funding they need to invest in their properties, create jobs, and contribute to the local economy. Additionally, they can help attract new businesses and visitors to the area, which can have a positive impact on the local economy over the long term.

Appreciation and rentals have stayed strong since we have a limited supply of land with tons of infrastructure coming in! Our rentals can do 10-15% gross of purchase price.

How to narrow down locations for long distance investing for LTR SFR

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