Best Market for Long Distance Small Multi-family BRRRR

[Nick Hulme]

My wife and I are renting out the basement of some close relatives in San Jose, CA. We're comfortable and are in no rush to leave. We both have good jobs in the south bay. I also grew up in this area and most of my family still lives here, so we would like to stay in or around San Jose... We also want to start investing in real estate, and the bay area isn't exactly a friendly market for people in their mid-twenties just getting started.

We've done some research, and the best strategy seems to be long distance long term rental properties. I like the idea of small multi-family and would like to use the BRRRR method if possible (might be difficult from another state though).

That said, what are the best markets to consider? We're looking for the best combination of job growth, population growth, vacancy rates, equity forecasts, rent prices, multi-family home prices, weather, and tax burdens. Please let me know what other factors I ought to take into account!

Some spots I've been considering so far: 

Florida - Jacksonville / Orlando

Tennessee - Nashville

Texas - Austin / Dallas / San Antonio

Alabama - Birmingham?

Missouri - Kansas City / St. Louis

North Carolina - Raleigh / Charlotte

Utah - Salt Lake City / Provo

Arizona - Phoenix

[Joshua Janus]

Quote from @Nick Hulme:

My wife and I are renting out the basement of some close relatives in San Jose, CA. We're comfortable and are in no rush to leave. We both have good jobs in the south bay. I also grew up in this area and most of my family still lives here, so we would like to stay in or around San Jose... We also want to start investing in real estate, and the bay area isn't exactly a friendly market for people in their mid-twenties just getting started.

We've done some research, and the best strategy seems to be long distance long term rental properties. I like the idea of small multi-family and would like to use the BRRRR method if possible (might be difficult from another state though).

That said, what are the best markets to consider? We're looking for the best combination of job growth, population growth, vacancy rates, equity forecasts, rent prices, multi-family home prices, weather, and tax burdens. Please let me know what other factors I ought to take into account!

Some spots I've been considering so far: 

Florida - Jacksonville / Orlando

Tennessee - Nashville

Texas - Austin / Dallas / San Antonio

Alabama - Birmingham?

Missouri - Kansas City / St. Louis

North Carolina - Raleigh / Charlotte

Utah - Salt Lake City / Provo

Arizona - Phoenix

Columbus, Ohio is a great market to invest in. 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.

https://www.dispatch.com/story/business/2022/01/21/intel-ohio-building-computer-chip-factories-licking-county-jersey-township/9173472002/

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.

https://abc6onyourside.com/news/local/new-osu-hospital-expected-to-transform-health-care

Here are a few more recent investments

https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbus

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.