Hey Everyone, I currently live in Colorado and am looking to purchase real estate to eventually turn into a rental. What are your thoughts on good markets to be targeting (towns, cities, states, etc.). If you were looking to put little cash down and still generate CoC return, where would you be looking? Thanks everyone!

I would recommend Columbus Ohio personally! Still tons of 1% rule deals here in Columbus Ohio. Plus you get a great mix of positive cash flow and appreciation - it doesn't get better than this! Also, I love how there's tons of catalysts for population and job growth. Columbus is the only city in the midwest and rust belt that is growing in population. Plus, tons of employers like Honda, Intel, Nationwide, Wexner are bringing more jobs here. I'm a local investor and agent here and have worked with many out of state investors, so if you have any questions, would love to help out!

Cleveland OH is realy good for cashflow with a low PP. Columbus can cashflow as well, but appreciation is where it really shines

Really depends on the asset/project/business plan but I love the linear markets such as Wisconsin or Ohio. Linear markets have a more flat growth curve and are not "boom and bust" type markets. I live in Reno NV and Milwaukee WI - I would consider Reno to be a very hot boom/bust market, while Milwaukee is a very steady eddy predictable linear market with great cashflow. Our business focuses primarily on industrial real estate throughout Southeastern Wisconsin - some people call it the "Machine Shop of the World". I like it because we have a solid blue-collar employment base that is specialized in manufacturing, we can buy properties at cap rates that allow for strong predictable cashflow, and then we can execute our business plan to pull some value-add levers and increase the net operating income. Note - as I mentioned at the beginning, it's all about the project and business that you want to be in - if I was going to buy a short-term rental I would look at areas that have year-round desirability such as Arizona, Tennessee, and Florida.

Well my first thought would be states with no income tax, Second possible oppurtunity zones, (legislation is currently stalled as of 22 March to include more census tracts) third asset types, I like multifamily 4-20 units, sfr portfolios 5-10 or ones you can cherry pick. then to markets Memphis is a good rental market secondary market like desoto county, bartlett germantown etc. Nashville is a alittle hot and it would take some work to get in a deal. A secondary market of a city like nashville tho. Clarksville, murfreesboro, hermitage, hendersonville. Worked for an investor and acquired nearly 200 doors in 6 months in bham. Only draw back to good markets is heavy hedge fund presence. There is a good amount of competition. WIth good property management things seem solid. I have been canvassing San Antonio and Dallas, Phoenix, Ft Lauderdale, Asheville and surrounding areas. would you ever consider putting down 25-40% down to get a better CoC?

@Derek Fike The Midwest will always be a great market for Cashflow. Missouri, Ohio etc. Buy low, rehab, rent and repeat is the best strategy. As an Ohio agent target area is Cleveland, I highly recommend investing there to generate rental income.

Because Ohio is pretty good for real estate investing which is what BiggerPockets focuses on

Have you considered Kansas City? Very landlord friendly and have opportunities in both Kansas and Missouri. Really most of the midwest is a great place for out of state investor to find some cashflow to buy into other larger markets.

I also vote for Detroit. I own 12-doors there and live in California now. The returns have been incredible both from cash flow and appreciation. If you do a bit of real research on Detroit I think you'd be amazed at everything that's happening there. Outside of my own investing I also help others get started, so shoot me a message if you want to talk.

@Derek Fike It’s hard to say at the moment due to the fact that there are some unanswered questions pertaining to your current financial situation to narrow down a market based off your buying power/credit scores to help determine what loan products or funding sources to target/ along with how much experience do you currently have and what’s your long term goal(s). I’d be glad to help you narrow things down just send me a message.

Columbus, OH is a great cash flow and appreciation hybrid with a rapidly growing population.

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