New York City, NY · Member since 2018 · 15 posts · 4 votes
Hi all,
I am currently working in tech and looking to diversify some of my income while working on building up some passive income. I am currently living in NYC which is definitely not a market I am interested in. I have done some research and I am looking to purchase buy and hold properties in markets with good cash flow which is the reason I am looking at Cleveland and Indianapolis. Looking to connect to other investors and build an all-star team in the market I decide to buy in. If everything goes well, I definitely plan on getting more investment properties. Hope to chat with some of you soon!
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
@Colin Smith Both are cash flow markets but in my opinion, Indianapolis has much stronger economic and demographics. Cleveland has a shrinking population which is a real negative for me. The table below might help you compare. (click on the image to enlarge it)
I lived in Brooklyn, NY and though investing was for the people who had 20% down for a million dollar property. I now know differently, and am glad to see you get ready to invest as well.
One way to reach out to people in these markets is to get active in the forums and pay attention to the places people are from (it says that right after their name on top of their post) and then reach out to the members in that area by sending them a colleague request. (you do this by hovering the mouse over their name and clicking on 'connect')
I am currently working in tech and looking to diversify some of my income while working on building up some passive income. I am currently living in NYC which is definitely not a market I am interested in. I have done some research and I am looking to purchase buy and hold properties in markets with good cash flow which is the reason I am looking at Cleveland and Indianapolis. Looking to connect to other investors and build an all-star team in the market I decide to buy in. If everything goes well, I definitely plan on getting more investment properties. Hope to chat with some of you soon!
-Colin
Well, I am biased towards Cleveland as I live here and invest here! Even if I didn't live here, I would still put my money on it. Unlike Indianapolis, Cleveland isn't crawling with too many investors just yet. There are still plenty of investment properties at a great entry point compared to other similar markets. There has been a lot of growth here lately, including Amazon announcing they will be moving in 2 large distribution centers to the Eastside suburbs.
Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
8y
@Colin Smith Take a look at upcoming development plans for both cities and look for new and planned investments for both areas, Amazon is bullish on Ohio they recently made a huge investment in Columbus and will soon expand into Cleveland. Another key stat you may want to look at is population growth and planned population growth for each city. You can have a great rental portfolio but its no good without a strong rental market.
P.S.- There are opportunities to cashflow in New York State, NJ & PA at properties that you can drive uber or take mass transit to many people in the area feel like they're priced out, but that isnt the case.
@Colin Smith Take a look at upcoming development plans for both cities and look for new and planned investments for both areas, Amazon is bullish on Ohio they recently made a huge investment in Columbus and will soon expand into Cleveland. Another key stat you may want to look at is population growth and planned population growth for each city. You can have a great rental portfolio but its no good without a strong rental market.
P.S.- There are opportunities to cashflow in New York State, NJ & PA at properties that you can drive uber or take mass transit to many people in the area feel like they're priced out, but that isnt the case.
Good luck
That's good advice. I have definitely been reading up on factors such as job growth, population growth, companies in the area, landlord laws, etc. I think it will come down to who I end up connecting with on here. As for REI markets around the northeast, most that I have seen require a little more money down than I am willing to put at the moment. I would be interested in hearing about your opinion on some cashflow markets in the northeast though.
Real Estate Agent · Chicago, IL · Member since 2017 · 715 posts · 138 votes
8y
Colin Smith Welcome to BiggerPockets! It is great to have you and please feel free to jump in the community - there are certainly great people around here. Good luck on REI journey!
Colin Smith Welcome to BiggerPockets! It is great to have you and please feel free to jump in the community - there are certainly great people around here. Good luck on REI journey!
Thanks! The wealth of information I've found on BP so far has been absolutely invaluable.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
@Colin Smith Both are cash flow markets but in my opinion, Indianapolis has much stronger economic and demographics. Cleveland has a shrinking population which is a real negative for me. The table below might help you compare. (click on the image to enlarge it)
Real Estate Agent · Richardson, TX · Member since 2016 · 39 posts · 6 votes
8y
Watch out for property taxes in Cleveland @Colin Smith I have not invested there but did look a few deals that seemed to have pretty high taxes. So you will probably need to make sure you get even a better deal to offset. I do invest in Indy. Best of luck and let us know how Cleveland does for you should you go that route.
New York City, NY · Member since 2018 · 15 posts · 4 votes
8y
@Mike D'Arrigo, thanks for posting the graph. The population decline does concern me which is definitely something I am considering when making my final choice. Being that I want to go for a buy and hold for cash flow, population is an important factor.
New York City, NY · Member since 2018 · 15 posts · 4 votes
8y
@Dean Muriby, that's an interesting point. When looking at deals, I am seeing taxes as a factor but a lot of properties I am seeing still have good cash flow despite the taxes. I'll be honest, I am not sure what "normal" taxes would look like since I have just started looking into REI markets but I'll start looking into it. Thanks for pointing that out.
New York City, NY · Member since 2018 · 15 posts · 4 votes
8y
@Michael Swan, I completely agree about building up a rock-star team. Easier said then done I think. I plan on fully vetting whoever I choose to work with and if this first deal goes well for me, you can be sure I will use the same team again for future REI efforts I undertake. The more I read into it, the more I feel buy and hold properties for rental cash are a great counter balance to stocks so I am hoping to build up my rental portfolio within the next few years.
Los Angeles , CA · Member since 2018 · 32 posts · 22 votes
8y
@Mike D'Arrigo thanks for posting that chart. And thanks @Colin Smith for this thread. I’m also looking to invest out of state and am looking at a lot of these same markets. The population decline and higher taxes in Cleveland did cause me to pause on that market. Mike, I’m wondering why Oklahoma City wasn’t on your chart, or why it isn’t mentioned as much in general in these types of discussions? It seems like it would have a lot of the same positives that a market like Memphis or Indy would have in terms of population growth, rental yield, etc
To get a great team, only ask other investors that have lots of front doors and have already learned the hard way, so you don't have to do so. Send colleague requests, reach or and message them. After a conversation on the phone with them, ask for q little residential agent contact and maybe they will throw yo u there Property Manager too. I get sooooooo many people contacting me about the lack of attention they receive from their property manager.