Which city/state to invest?

Question

Got prequalified for a conventional loan and now researching various cities to invest in a rental condo apartment or townhome.

So far I’m very interested in Houston, TX, Tampa, FL, and Columbus, OH. What do you think of investing in any of these?Are there any other cities/areas worth digging and researching more into?

Carlos Ptriawan · Answer

That three cities are uncomparable in terms of return, if you just look for CF just go to Ohio.

Ryan Husser · Answer

Hi Sebastian,

Welcome to the real estate game! All the markets you listed are great markets to invest in, but you need to find the best one for you. I would first determine if you have a built-in advantage in either of those cities. For example, do you have family or friends that could help manage the properties already located there? If you know people there already, I would strongly recommend reaching out to them to see if they'd be interested in partnering up or helping you manage and find new properties. Next, I would research different areas in each to see if you want to go for higher cashflow or higher appreciation. Some cities have both, so you might have decide what strategy you want to go after first. After that, you'll want to interview great agents in the area who have experience working with investors. They can be your biggest asset when trying to find an investment property. If you have time I would also recommend that you visit the city in person and drive the neighborhoods to get a feel for different parts of the city. With Facetime and Zoom you shouldn't need to visit in person when put an offer in, but it is a good idea to see everything in person at the beginning to get a rough idea.

Hopefully this helps!

Remington Lyman · Answer

Columbus, Ohio is a great market due to the job and population growth.

https://www.cleveland.com/busi...

Brandon Goldsmith · Answer

That all depends on your goals for REI. You have highlighted some of your interests but as far as the cash flow vs. appreciation will play a factor. Good luck! @Sebastian Garcia

Stephen Brown · Answer

You can't lose in Columbus, those guys at REAFCO will treat you well!

Reece Iovine · Answer

I like Columbus. Strong appreciation and cashflow due to job growth and population growth. Note, you may want to find a lender in your target market and not just go with some national lender. Lenders need to be licensed in the state you're investing in, also lenders from that state will be able to point you toward the best options specific to that area. Just a heads up :)

Navid A. · Answer

@Sebastian Garcia

I have the same dilemma. I live in California and I can buy a duplex here for 600K that generates $2400/month gross rent or I can invest in Ohio get probably close to $5000/gross return. The California duplex would appreciate more but it would be only one property. Whereas Ohio I maybe able to buy 4 SFR or 2 duplex. I need property management in Ohio as I don’t know anyone. I can manage the property here in California. Not sure what’s the best option. Any suggestions?? Thanks

Davartay Miller · Answer

@Sebastian Garcia Hey! I would love to get you connected with our team of experts and help you identify some of those markets that we are activity buying in, moving into, and studying. If my team and I can be of any services, please do not hesitate to reach out. Best of Luck!

Sebastian Garcia · Answer

Hi Brandon, thanks for your reply! So I narrowed to those markets mainly because of the following things, not necessarily all 3 markets have all of these points at the same time:

• affordability / relatively lower entry barrier

• young professionals population increasing or expected to increase which could also mean job market growth

• Landlord-friendly cities/states

• Florida is also on my list because is closer to home (Puerto Rico)

Sebastian Garcia · Answer

Hey Ryan, wow thanks for the relply! Unfortunately I don’t have that type of advantage in those cities so I would need to rely and account for property management. My main goal is to find a good cash flowing property so like you suggest, I should look into which cities there’s better opportunities for good cash flow.

Thanks for all the tips, will definitely take all this in consideration 👍🏽

Which city/state to invest?

Most Popular Reply