Los Angeles, CA · Member since 2019 · 56 posts · 133 votes
Hi Everyone!
I’m looking to invest in my first rental property this year. I wanted to know what places are the best to invest, to buy a 2 unit property not exceeding $400,000. Any specific states, counties and cities recommendations will be a lot of help!
@Anthony Holloway Just like @Kenneth Williams, I'm biased as well haha. The Philadelphia suburbs are a great place to pick up a multifamily for under $400K with strong cap rates. In fact, I just sold a well-maintained off-market 9-unit in the nice part of Norristown, PA for $450K. A place like that would bring $8,300/month in gross rent easily. Recently, duplexes in B level neighborhoods have sold just above $200K with $3,000 in gross rent. It's worth checking out.
PA is a tenant-friendly state, yet investing outside the city isn't too risky. Evictions have happened recently in Delaware County and Montgomery County PA within 60 days.
@Anthony Holloway Just like @Kenneth Williams, I'm biased as well haha. The Philadelphia suburbs are a great place to pick up a multifamily for under $400K with strong cap rates. In fact, I just sold a well-maintained off-market 9-unit in the nice part of Norristown, PA for $450K. A place like that would bring $8,300/month in gross rent easily. Recently, duplexes in B level neighborhoods have sold just above $200K with $3,000 in gross rent. It's worth checking out.
PA is a tenant-friendly state, yet investing outside the city isn't too risky. Evictions have happened recently in Delaware County and Montgomery County PA within 60 days.
@Anthony Holloway I second Kenneth on Memphis. I also invest in Little Rock as well which is a very similar market. Both markets are landlord friendly and low property taxes. You should get good cash flow numbers in both. Good Luck!
@Andrew Akins I never thought of Memphis but you are the third person to tell me about it and now I’m interested in learning more. Thank you for the recommendation and confirmation of Memphis!
Interested in knowing about the best places for cash flow as well! I am an airline pilot with the ability to travel and live anywhere and am currently being preapproved for my first purchase using my VA loan. Really just want to make as much money as I can on my first purchase because I am rarely home anyways.
I suggest any of the Charlotte, NC suburbs. Gastonia/Concord/Kannapolis etc.
Gastonia specifically where the prices haven’t caught up with the growth. Gastonia has great cash flow (most properties meet the 1% rule), strong rental market, landlord friendly and huge population growth due to the overflow from Charlotte.
As an investor I love the Gastonia market and what it has to offer. Call me biased but the numbers don’t lie!
I’m an investor. It is getting pretty tough to find cash flowing properties around charlotte. Gastonia, Monroe and Salisbury/Kannapolis area are the best bets.
@Samara Huntley I didn’t think of NC, I will definitely look more into Gastonia. I definitely want to stay connected hopefully when I’m able to invest in NC area! Thank you!
@Mohan Dag This is great, thank you for responding and giving me your recommendations. This is exactly what I wanted. I created a excel sheet to start looking into certain areas so I will add these and do some research into them!
How exciting. I am in Texas so I am most familiar with Texas markets. Check out Austin, Houston, and San Antonio for hot areas for rental properties. @Anthony Holloway
@Marlen Weber How do you feel about DFW? I’m from Dallas originally and am looking to invest long distance there since I’m familiar with the area. I’m currently living in San Francisco.
@Marlen Weber I actually was doing a fair amount of search this weekend! I created an excel sheet to plug information in about different states and counties and I started with Texas. Houston is a place I really want to invest in and later try to do Airbnb there as well! Thanks for the recommendation!
@Firen Forrest This weekend I was doing research about Texas and I want to get more similar with the state to hopefully do a deal there. I’m from LA and I want to invest out of state too
Very hard to go wrong with San Antonio for rentals. Lots of big tech corps headed to central Texas resulting in an even higher demand for homes with scarce inventory. Would strongly recommend San Antonio as you get the same dominant appreciation at Austin at far less competitive prices. I have personally noted numerous of my investors from out of state or even in some of the other major cities in Texas making a rush to San Antonio in just the first two weeks of 2021.
@Robert Neal wow, that’s great information, thank you! I will definitely add San Antonio to my list of places to research more about. Hope to stay connected!
Detroit, Detroit, Detroit. #1 city in the country for positive cash flow, rent to value ratio and where you can stretch your investor dollar the furthest. In other words, you get the biggest bang for your buck in Detroit.
Hey Anthony - thanks for starting this thread. I live in LA as well, and looking to start my portfolio in 2021. Let me know if you'd like to connect more and share best practices so far. Cheers!