If u can start REI in any community in the US, where would it be?

Question

Hello everyone! This would be my first question-post.

I am 24 with a philosophy degree at the University of Illinois. My parents live in South Korea and I am the only U.S. citizen in my family. I would like to start Real Estate Investing, but do not know which community I should start in. I think it is a huge advantage to choose any city and start my career. If you can start your Real Estate Investing career in any city in the United States, where would you start?

I like the idea of house-hacking, buying small 2-4 multifamily property with FHA loan, and rent out the rest unit(s), so that's how I will start. Beforehand, I will also get a day job to get FHA or bank loans. My parents may give me a 100-200k loan if I ask.

Based on a book I read [Part Time Real Estate Investing], the top markets (2016) are

Orlando, Fort Lauderdale, Cape Coral, North Port, Tampa, Jacksonville, West Palm Beach, FL,

San Antonio, Dallas, Austin, TX

Grand Rapids, MI, Charlotte, NC, Seattle, WA, Nashville, TN, Charleston, SC, Denver, Co, Madison, WI, Boise, ID

But, I've never been any of these cities so I have no idea.

Back to the question, If you can start your Real Estate Investing career in any city in the United States, where would you start? and why? Any comments will be highly appreciated!

Mark Newton · Answer

I am going to piggyback on what many have already said: Pick a city that suits your lifestyle. While it is true that not every city is conducive to real estate investing, there is also no shortage of potential spots as you have already noticed. I say this because at the end of the day, real estate has just as many bad days as it has good ones. One day you have a property under contract, and the next day the seller passes and you are waiting to hear back from probate court. The best thing for you would be in a place that you enjoy, even on the bad days.

I chose to work in Nashville, because I love the atmosphere. I love live music on any day at any time, I love being able to take a day to canoe on the river, I love the hole-in-the-wall BBQ places, I love where I live. It just so happens that I work in real estate at the same time. Pick a place that will make you happy, and the profits will follow. Let me know if I can help in any other way!

Andre Crabb · Answer

Hi Luke,

Welcome to BP! I'm in about the same boat as you, choosing from all of the US in where to start. Some of those cities you mentioned are likely still good to be in, but also check out the midwest: Cleveland, Detroit, Pittsburgh, Cincinnati, etc. Its cheaper out there, though you may or may not like living there ;)

Good luck with your search!

Thomas S. · Answer

If you are able to move and invest where you live I would be researching which areas have th emost landlord friendly regulations.

Good deals can be found anywhere, government interfearnce and control of your business is a different matter.

Luka Milicevic · Answer

@Luke Kwon

In terms of "best place" to invest, I can't really say. It depends on what you want to do.

For example: SFH investing in Manhattan is not realistic.

If you're looking for cash flow, Nashville is no longer a good option. There are always deals to be found, but the numbers and volume that most folks are looking for are more difficult to come by compared with many other markets.

In terms of lifestyle, I couldn't recommend a better place to live.

It really depends on what you want. I don't think there is a right or wrong answer.

If you're ever come visit down south let me know and i'd be happy to talk to you about the market down here.

Michael Skvorak · Answer

Hi Luke!

If you are able to move around, investing in multiple markets is a great way to expand your portfolio.  Nashville has stayed in the top ten the past 3 years as one of the fastest growing real estate markets.  Everyone loves their country music and bbq, and Nashville as A LOT of it.  Listing prices have increased 13% since last year.  Home sellers netted a median profit of $76,100 so far this year, which is around 36% more than this time last year.  As long as you do your due diligence you will be fine.  I wish you the best of luck in your investing endeavors!

Rick Pozos · Answer

It does not matter what city you start. Your emphasis should be on HOW. Get a marketing plan in place on how you will find deals. You need to find people who are willing to sell their properties at below market prices. There are people who NEED to sell in every city in this country. Dont take the easy route and buy retail properties. Anybody can do that.

If you have a job, start in that city. Start asking everyone at work, neighbors, anyone you can talk to if they know anyone who is behind on their mortgage, taxes or if they own a house that they dont want anymore. THAT along with some direct marketing to those types of people will get you a deal in any city in this great country of ours.

HAPPY 4th!!

Bart H. · Answer

Congrats on attending a great school!!! :)

Personally I am a big believer that you decide where you would like to live, and then do real estate, the markets will change drastically over the course of your career.  And there are always deals to be had, even if different cities lend themselves to different types of investing.

I think as long as you pick a growing metro area that you will be able to be successful in real estate.

I would suggest as an example that over the long term, I think DFW will be a good place to invest over the next 25-30 years.   We just had a huge run in property prices, and for several reasons, I get the feeling that the market is a little frothy.  Not 2008 frothy by any means, but in the next 3-5 years, I think the market will be fairly flat.   and a quick 5-10% correction wouldn't be out of the question.

(assuming Amazon goes elsewhere, if Amazon comes to Dallas.....then hold on tight, we will go up substantially over the next few years.)

Best of luck to you!!!

If u can start REI in any community in the US, where would it be?

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