What state should we consider buying properties now at the budget around 350k-450k?

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What state should we consider buying properties now at the budget around 350k-450k?

Bethany Tran
Member since 2022 · 2 posts · 8 votes

I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)

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Alex Rehman
Property Manager · Cleveland, OH · Member since 2023 · 96 posts · 74 votes
3y

Hi Bethany,

I can understand your concerns about investing in Houston given the high property taxes and competitive rental market. It's always wise to consider other options and explore different states for investment.

Being biased Cleveland is a great city in Ohio for real estate investment. The city has a low cost of living, which makes it attractive for renters. Additionally, the property prices are relatively low, and the rental market is stable. The appreciation rate is also good, making it a good option for long-term investment. Long story short, it is a cash cow.

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  • Alex Rehman
    Property Manager · Cleveland, OH · Member since 2023 · 96 posts · 74 votes
    3y

    Hi Bethany,

    I can understand your concerns about investing in Houston given the high property taxes and competitive rental market. It's always wise to consider other options and explore different states for investment.

    Being biased Cleveland is a great city in Ohio for real estate investment. The city has a low cost of living, which makes it attractive for renters. Additionally, the property prices are relatively low, and the rental market is stable. The appreciation rate is also good, making it a good option for long-term investment. Long story short, it is a cash cow.

    5Reply
  • Harrison Chow
    Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes
    3y
    Quote from @Bethany Tran:

    I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)


    Hi Bethany! When considering OOS investing, look for markets with strong economic fundamentals, such as job growth, population growth, and low unemployment rates. This can help ensure that there is a high demand for rental properties in the area. 

    One state you might want to consider is Ohio, which boasts thriving cities like Columbus, Cincinnati, and Cleveland. I personally focus my investments in Columbus, which has seen a significant increase in property values and is expected to continue this trend in the future. This is due in large part to major corporations like Intel, Honda, Nationwide Children's Hospital, and Wexner Medical Center investing heavily in the region and creating numerous job opportunities. Additionally, Ohio has favorable landlord-tenant laws that provide landlords with more rights and protections.

    If you're interested, please let me know how I can assist you further. My team and I also have a good infrastructure in place for out of state investors (i.e. connections to contractors, property management companies, lenders etc.) I would be delighted to discuss this topic with you in greater detail!

    3Reply
  • Kitty Kuo
    Member since 2023 · 4 posts · 11 votes
    3y

    Now is not the time to buy is the correct answer.   Big years long up swing.

    Prices everywhere arent really going down, san maybe a TAD.

    I hate using IF like so many but IF the numbers work out........do it.

    Beware of Agents telling you to buy in their city................

    3Reply
  • Mykhailo Strelchenko
    New to Real Estate · Long Island, NY · Member since 2023 · 5 posts · 5 votes
    3y

    I see great appreciation in Houston going into 2026. The median sale price might double. As well as Dallas and Austin. 

    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    Oklahoma has been a growing state for years with a low cost of living and decent prices. As for the exact real estate market I can't say since I'm not realtor..... 

    [email protected]330-557-3021
    2Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    @Bethany Tran

    Hi Bethany, with your budget I would recommend being in Columbus/Cincinnati. Both growing cities and in demand as well. I am an agent in Cincinnati and, fun fact, Cincinnati has the most demand for traveling nurses in Ohio, so MTR by one of these bigger hospitals is a great strategy. LTR is great as well! Really any strategy here would be of use. Plus, that budget is very good for both markets. Let me know if you have any questions about Cincy or are interested!

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  • Tom O'Stasik
    Real Estate Agent · Tulsa, OK · Member since 2019 · 130 posts · 66 votes
    3y

    with that budget you might be able to get two rentals or a higher end rental in Tulsa, OK

    1Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    Hey Bethany, not sure if you're looking into multi-family, but in my area I just analyzed a turn key duplex that is going to give about 11.4% CoC in the Philadelphia area. It's a major city which is a plus for appreciation.

    [email protected]267-767-0111
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  • Moon MolsonPro Member
    Rental Property Investor · Philadelphia, PA · Member since 2020 · 26 posts · 7 votes
    3y
    Quote from @Alan Asriants:

    Hey Bethany, not sure if you're looking into multi-family, but in my area I just analyzed a turn key duplex that is going to give about 11.4% CoC in the Philadelphia area. It's a major city which is a plus for appreciation.

    WHAT?! Where in Philly? I’ve been analyzing in Central Philly and maybe hitting 5% on multi-families on good day (which is rare).
    1Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    3y
    Quote from @Moon Molson:
    Quote from @Alan Asriants:

    Hey Bethany, not sure if you're looking into multi-family, but in my area I just analyzed a turn key duplex that is going to give about 11.4% CoC in the Philadelphia area. It's a major city which is a plus for appreciation.

    WHAT?! Where in Philly? I’ve been analyzing in Central Philly and maybe hitting 5% on multi-families on good day (which is rare).

     Hey Moon, I invest in NE Phila. Let me know if youre interested and we can connect. 

    [email protected]267-767-0111
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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    3y

    I like Austin and San Antonio a lot!

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  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    Investing in Houston may have its challenges, but there are still many great benefits. With the help of a knowledgeable realtor, you can buy and rent property here that will yield a good return on your investment. Plus, with the city's economic growth continuing to increase year after year, now is the perfect time to invest in Houston. If you're looking for a great state for investing within your budget, I highly recommend considering Houston Texas - feel free to contact me if you need more information or advice!

    [email protected]832-889-5607
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Bethany Tran:

    I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)

    Hi Bethany, personally, I really like Columbus Ohio and work with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. My biggest advice for out of state investors is finding the right team members who has your best interest at heart (and not chasing a commission check or see you as a paycheck!). If that means interviewing multiple people, you should definitely do so! As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

    [email protected]614-300-7535
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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3y

    @Bethany Tran I will look into San Antonio, Houston, Amarillo in Texas and Columbus and Cincinnati in Ohio.

    Goodluck 

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  • Nikki Yankowski
    Huntsville AL · Member since 2021 · 44 posts · 30 votes
    3y

    Check out Huntsville AL. Low unemployment and a lot of gov't backed relocations because of Redstone Arsenal and the FBI

    1Reply
  • Jeff Roth
    Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 465 posts · 255 votes
    3y

    Hi Bethany-

    This is a great question!

    If I did not live in Michigan, I would be looking to invest in Michigan.

    You can easily buy several cash flowing properties in a place like Lansing (the State capital) with that budget or one class A property in a location like Ann Arbor, Grand Rapids, or Traverse City.

    Also, while many areas are seeing rent increases slow nationally, Michigan is continuing to see solid demand for rental housing.

    Michigan has a temperate climate, abundant natural resources (especially water), and a diverse economy.

    To your success!

    1Reply
  • Ricardo Hidalgo
    Real Estate Agent · Member since 2019 · 569 posts · 257 votes
    3y
    Quote from @Bethany Tran:

    I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)

    I recommend Panama city beach since you can find options on the beach for 500k or less that are producing 10-15% in gross rentals on the purchase price. We recently bought one for 330k that was doing 50k on the books with nearby beach access, pools, tennis courts and other amenities. 
    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Bethany Tran:

    I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)


     If your cash 10% net caps or better are to be had in the Mid west. I have seen sf for about 100k with 1300 -1400 in rent, 

    All the best 

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Bethany Tran
    I would recommend checking out the Columbus OH market. It's a good hybrid market of cash flow and appreciation. 

    [email protected]614-412-4565
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  • Bethany Tran
    OP
    Member since 2022 · 2 posts · 8 votes
    3y
    Quote from @Nikki Yankowski:

    Check out Huntsville AL. Low unemployment and a lot of gov't backed relocations because of Redstone Arsenal and the FBI

    Thank you
    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y

    Hey Bethany, I live in California and it's a similar situation here... doesn't make sense to invest unless you're purely shooting for appreciation.

    I invest in Detroit and have 12-doors theres. It's been fantastic from a cash flow perspective and I've seen extremely strong appreciation as well, largely from all the revitalization efforts happening there.

    Happy to discuss that market if you're interested. I also help people get started in Detroit all the time.

    2Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
    3y
    Quote from @Bethany Tran:

    I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)


    Invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 fortune 500 companies,
    over +25% population change since 2000, 2016 smart city challenge award winner gaining 50 million dollars in funding from the government (https://www.columbus.gov/smartcity/), Intel is spending 20 Billion dollars to build two semiconductor plants, and many many more great things presently and coming in the future. Needless to say Columbus will remain a strong real estate market for the foreseeable future.
















    2Reply
  • Pat Mulligan
    Investor · Ventnor City, NJ · Member since 2016 · 41 posts · 34 votes
    3y
    Quote from @Mykhailo Strelchenko:

    I see great appreciation in Houston going into 2026. The median sale price might double. As well as Dallas and Austin. 


     I have been looking into Houston as well. The rental market is a little soft at the moment but I agree.  The appreciation rate is better than a lot of other  metro areas.  MTR for traveling professionals is prob the way to go in Houston for max cash flow, IMO.  The Airbnb ave rates are really low there- glutted market or crappy place to vaca? lol. 

    1Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y
    Quote from @Bethany Tran:

    I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)


     Major cities like Houston aren't really great right now, but Texas is.  I'd go for tertiary markets with decent population and anchors like large hospitals or colleges.  Waco has Baylor.  Tyler has UT Tyler.  Lubbock has Texas Tech.  All are solid markets for rentals.  Stay away from Austin or DFW but people are clamoring for Texas.

    2Reply
  • Lucia Rushton
    Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    3y

    @bethany SFH? small MF? value - add or move in ready?

    0Reply
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