Best Cities for 2024? Strategies?

[Forest Wu]

Hi folks, hope that you're doing well. Kicking off a discussion to see if people have ideas of where to invest in 2024. Because of high interest rates (as well as soaring insurance premiums), I think cashflow is near impossible to achieve for long-term rentals. Best strategy is to look into rougher neighborhoods, get creative with financing or find off-markets. 

That being said, I still find these cities interesting:

Detroit, Michigan

Charlotte, North Carolina

Cleveland, Ohio
Indianapolis, Indiana

Birmingham, Alabama

Any other ideas? Let's set some goals and crush it!

[Al Bazzy]

Quote from @Forest Wu:

Hi folks, hope that you're doing well. Kicking off a discussion to see if people have ideas of where to invest in 2024. Because of high interest rates (as well as soaring insurance premiums), I think cashflow is near impossible to achieve for long-term rentals. Best strategy is to look into rougher neighborhoods, get creative with financing or find off-markets. 

That being said, I still find these cities interesting:

Detroit, Michigan

Charlotte, North Carolina

Cleveland, Ohio
Indianapolis, Indiana

Birmingham, Alabama

Any other ideas? Let's set some goals and crush it!

Detroit would be the best market for now. 
Detroit stood out as an unexpected frontrunner, registering the highest year-over-year home price growth among the metro areas analyzed in the report and surpassing Miami for the first time in 16 months.

Detroit has transformed into a metro area, gaining popularity as an affordable destination for higher-tier housing. Overcoming its previous reputation as a city in decline, Detroit is now attracting individuals with larger budgets because their money can stretch a bit further in the city. The historic neighborhoods in Detroit offer attractive housing options that, while expensive for the area, are considered well-priced for the available features and quality.

Real estate investors venturing into a city like Detroit must be discerning in their property choices. The higher-income individuals identified by CoreLogic seek properties that are above average and provide value for their money. So, while the challenge of affordability persists, it takes on a slightly different nuance in a sizable metro area where discerning buyers are looking for quality and value in their investments.

For urban investors, it’s advisable to seek homes that go beyond being simply inexpensive. Concentrate on properties with the potential to stand out significantly after a renovation. Conversely, if you’re investing outside a major city, prioritizing value for money becomes crucial, so aim to provide buyers with the most competitive price first and foremost.

[Michael Smythe]

@Forest Wu

Check out some of the great things happening in Detroit in 2024

https://michiganchronicle.com/2024/01/03/major-developments-that-will-define-detroit-in-2024/

We've also got a breakdown of the 178 City of Detroit Neighborhoods by Property Class, so you know what you're investing in.

What else can we assist with?

[Jack Schwartz]

Buffalo, NY Getting hot!

also, a little further up Niagara Falls, NY forecasting a great deal for rehabbers / fixer uppers,

[Lindsay Davis]

@Forest Wu,

I see Birmingham on your list. If you’re primarily after cash flow, maybe Montgomery is worth looking into as well. Properties here are pretty affordable—the median home costs about $135,000. Median rents, meanwhile, are at about $1,200. At a glance, this means that the median property in Montgomery is barely under the 1% rule. Look a bit harder—or venture into rougher neighborhoods, as you mention—and you may be able to find long-term rentals that cash flow despite high interest rates and insurance costs.

If you want to stick to a decent neighborhood and don’t mind the suburbs, I’d recommend taking a look at neighborhoods to the north of the city, such as Prattville, Millbrook, Elmore, Wetumpka, and Deatsville.