Concord, CA · Member since 2015 · 87 posts · 46 votes
Hi BP Family! Where would you recommend living in USA to start house hacking and building a rental property business? The intent is to relocate from a high cost of living area like the Bay Area in California (although we love it here) to another, lower cost of living city where we can start by purchasing a multi-family to house hack (we are newbies, but have read a lot) and eventually build a portfolio of rental properties to retire off of. Would love to hear your thoughts - thank you!
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
Definitely get out of the Bay Area. From what I hear, the Midwest is your best bet. AZ and Texas are already too expensive, along with most of the South......
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
Definitely get out of the Bay Area. From what I hear, the Midwest is your best bet. AZ and Texas are already too expensive, along with most of the South......
Thank you Mo - yes Ohio has been one I have been looking at for a couple of years for OOS investing, but now we are leaning towards relocating there or somewhere else that still has great opportunities for growth.
Bruce, totally agree - I love California weather and definitely not used to living in colder regions - however as you said we need to go where the $$ is
Ohio is great! I have several investors that invest in the Cleveland area. Also, I live in one of the best Cleveland rental markets, Lakewood, Ohio, about 15 minutes west of Downtown Cleveland.
Ohio overall still has many pockets of opportunity for investors to fix and flip or buy and hold longterm. Having a good team on the ground is everything! Being local to Northeast Ohio, I’m happy to help with lending and local connections.
Also, my Agent partners always let me know of houses about to come to market, so some off market opportunities could be possible. Send me direct message or we can set up a call if you’d like.
I would probably go to the Southeast US states. Plenty of homes below the nationwide median and favorable demographics and migration patterns. I would especially look to the towns where people are moving to from high dollar cities like SF and NYC- try to find the next Nashville or Charleston.
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Nadine O. do you have family or friends or strong connections anywhere? That might help you narrow things down. And, you don't have to pick the absolute cheapest market, especially if you're going to start with a house hack.
Bruce, totally agree - I love California weather and definitely not used to living in colder regions - however as you said we need to go where the $$ is
You will get used to any weather. I spent over 40 yrs in SoCal and just wish I'd have moved sooner, the prices are ridiculous (among other things) :-)
Investor · Broadview Hts, OH · Member since 2016 · 310 posts · 280 votes
4y
The Midwest including Ohio is a great place to invest. Just be sure if you move here that your really ready for 4 seasons including lots and lots of snow.
Thank you Rachael - I was looking into Ohio (in particular Cleveland) pre-pandemic and had done a lot of research in Cleveland - even getting in touch with an agent at the time there. With all of my research, I keep going to back to Ohio.
I appreciate your help - I would love to connect and set up a call to discuss soon. Thank you.
Thank you, we have some distant relatives in Arizona and Virginia - but the rest are in California mainly. You are right however - looking into places where you have boots on the ground is a great place to start.
Huntsville, AL · Member since 2018 · 577 posts · 864 votes
4y
@Nadine O. - I'm happy with my opportunities I've had in North Alabama, but they are few and far between now. Birmingham seems to still have plenty of investment opportunities. Areas around Nashville also seem to be interesting options, although prices in Nashville proper are tough.
If I personally had to find the balance between living in the midwest coupled with real estate opportunities, I would pick either Columbus, OH, Madison, WI, or Grand Rapids, MI. But that's just me personally.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
4y
Pittsburgh, where I live. I think that the the keys to your plan, @Nadine O., isn't really WHICH mid-sized industrial city in the Rust Belt, it's systematically working to develop a heavy-duty local working knowledge of the location, and finding ways to build long-term meaningful relationships with the locals.
As far as Pittsburgh goes, I thoroughly believe it's one of the five best locations within the Rust Belt to try what you're thinking...but you have to get used to living and working in Pittsburgh. It isn't easy.
Thank you for the advice! I have been looking into Columbus which is a good option - and have looked into Grand Rapids as well as a friend who grew up there recommended it. I will look into the other locations you suggested, appreciate it!
Thank you for the advice! I have been looking into Columbus which is a good option - and have looked into Grand Rapids as well as a friend who grew up there recommended it. I will look into the other locations you suggested, appreciate it!
Totally unnecessary to physically move to Ohio to invest there, have great success, and retire early. At least that has been my experience.
I agree and you are definitely right about developing a local working knowledge of the location. I had done a deep dive into Cleveland, Ohio for OOS back in 2019- then once COVID began we took a break from pursuing OOS investing (although now I wish we had jumped into real estate then) - but it is all about building your team and creating relationships for sure.
Concord, CA · Member since 2015 · 87 posts · 46 votes
4y
@Account Closed
Thank you, I understand - we have friends who still live here and are investing OOS it's just that the Bay Area is getting more expensive (as of course most other markets) but the intent is to reduce the largest expense (housing) by house hacking to very minimal amount and use that to expand into more multifamily properties or other rental properties via BRRR method - hopefully while maintaining current income
Hi BP Family! Where would you recommend living in USA to start house hacking and building a rental property business? The intent is to relocate from a high cost of living area like the Bay Area in California (although we love it here) to another, lower cost of living city where we can start by purchasing a multi-family to house hack (we are newbies, but have read a lot) and eventually build a portfolio of rental properties to retire off of. Would love to hear your thoughts - thank you!
I would move to Columbus, Ohio! The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. The appreciation rate in Columbus has been 8% higher than the national average over the last year. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.
Another example of economic growth is the upcoming Ohio State University Wexner Medical Center Inpatient Hospital which is a 1.9million square foot hospital that will bring over 800 new beds and a thousand new jobs.
Check out The Complete Guide to the Columbus, Ohio Real Estate Market which goes through the Columbus, Ohio market in depth and will give you a better scope of where the highest levels of growth are taking place and where to look to invest.