Looking for good markets to build a MTR portfolio.

New to Real Estate · Elgin · Member since 2023 · 15 posts · 5 votes

Currently saving money to buy a house somewhere. Around this time next year I should have about $35,000 saved up. I really want to move out of the mountains and want to find a place to live where I can start investing. I have it in my head that I will save my money to about 30 grand. Find an investor friendly agent somewhere that will guide me better. Is this manageable?
Also let me know what some good markets are and what 2024 will have in store.

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Katie Buell

Member since 2020 · 16 posts · 9 votes

A great way to find a market is to go to https://www.furnishedfinder.com/stats

You can put in any city and it will show you how many requests for housing there has been versus how many units there are. You will be able to see which markets are saturated versus the ones where there aren't enough units to cover the demand. It can be surprising!

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Matthew Masoud
Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
3y
There are thousands of markets that work for a MTR portfolio.
1. Avoid markets that have STR restrictions. They will switch their portfolio to MTR and supply will skyrocket.
2. Avoid areas that have had thousands of MTR/STR added over the past few years.
I have MTR portfolios in the most random tertiary markets (Dayton, OH ... Hemet, CA) and they are doing well
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Afoma Okwudiafor
Member since 2019 · 25 posts · 12 votes
3y
Quote from @Matthew Masoud:

There are thousands of markets that work for a MTR portfolio.
1. Avoid markets that have STR restrictions. They will switch their portfolio to MTR and supply will skyrocket.
2. Avoid areas that have had thousands of MTR/STR added over the past few years.
I have MTR portfolios in the most random tertiary markets (Dayton, OH ... Hemet, CA) and they are doing well
Which markets do you think had the most influx of STRs/MTRs
0 Reply
Matthew Masoud
Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
3y
Quote from @Afoma Okwudiafor:

Quote from @Matthew Masoud:

There are thousands of markets that work for a MTR portfolio.
1. Avoid markets that have STR restrictions. They will switch their portfolio to MTR and supply will skyrocket.
2. Avoid areas that have had thousands of MTR/STR added over the past few years.
I have MTR portfolios in the most random tertiary markets (Dayton, OH ... Hemet, CA) and they are doing well
Which markets do you think had the most influx of STRs/MTRs

Many of the major cities in Florida, Texas, California. in and around the rockies, any place that has a "reputation" for being a STR spot is likely already over saturated.
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Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
3y
Congrats on being very disciplined about saving money. You're already ahead of the game. What are your goals as an investor? Before you move or make any investments you want to define your goals and set a path that is aligned with them. For example, since you mentioned moving, is one of your goals to househack so you get all or a significant portion of your living expenses covered? If so, you could really leverage that $30k with a first time homebuyer's loan on the right property. Are you trying to buy to produce cash flow? Are you wanting to buy properties that will appreciate or are you willing to provide sweat equity to force appreciation? $30k is nothing to sneeze at. There are many markets where you could get into a property with that down payment, depending on what the strategy is that you are trying to pursue. It's a lot harder at today's interest rates, of course, but I'd focus on low barrier to entry markets like you'll find throughout the midwest and upper midwest. You might consider listening to podcasts like Living off Rentals with Kirby Atwell. He's in the upper midwest doing well with middle class STRs. Or follow Grace and Amelia on the WIIRE podcast - they're in Iowa and doing great in their markets primarily with midterm rentals. There are a LOT of options and it can be overwhelming so start with the basics: where are you going to live and can you make money off that purchase. Define your strategy. Then go from there. Good luck!
[email protected]
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Xzavion Schultze
OP
New to Real Estate · Elgin · Member since 2023 · 15 posts · 5 votes
3y
Quote from @Bonnie Low:

Congrats on being very disciplined about saving money. You're already ahead of the game. What are your goals as an investor? Before you move or make any investments you want to define your goals and set a path that is aligned with them. For example, since you mentioned moving, is one of your goals to househack so you get all or a significant portion of your living expenses covered? If so, you could really leverage that $30k with a first time homebuyer's loan on the right property. Are you trying to buy to produce cash flow? Are you wanting to buy properties that will appreciate or are you willing to provide sweat equity to force appreciation? $30k is nothing to sneeze at. There are many markets where you could get into a property with that down payment, depending on what the strategy is that you are trying to pursue. It's a lot harder at today's interest rates, of course, but I'd focus on low barrier to entry markets like you'll find throughout the midwest and upper midwest. You might consider listening to podcasts like Living off Rentals with Kirby Atwell. He's in the upper midwest doing well with middle class STRs. Or follow Grace and Amelia on the WIIRE podcast - they're in Iowa and doing great in their markets primarily with midterm rentals. There are a LOT of options and it can be overwhelming so start with the basics: where are you going to live and can you make money off that purchase. Define your strategy. Then go from there. Good luck!

I’ll Definitely end up house hacking my first home. It could be a long term rental if it meets the standards.
0 Reply
Katie Buell
Member since 2020 · 16 posts · 9 votes
3y
A great way to find a market is to go to https://www.furnishedfinder.com/stats
You can put in any city and it will show you how many requests for housing there has been versus how many units there are. You will be able to see which markets are saturated versus the ones where there aren't enough units to cover the demand. It can be surprising!
2 Reply
Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y
Make sure you have your financing in order/you are pre-qualified. Know how much with your $35,000 you have to put down, and what of that lump sum you are going to be able to allocate to furniture, cleaning, etc.
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Dan GuentherBusiness Member
Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
3y
Hey @Xzavion Schultze - congrats on the savings progress! With $35K saved up you should be in a great position to buy assuming you will be owner occupying with 3-5% down. Make sure to speak with multiple investor-friendly lenders that understand house hacking specifically. Depending on the state you choose, options for first time home buyer assistance could really bring down the total out of pocket costs for that first house hack. For example, here in Colorado we have a program called CHFA (Colorado Housing and Finance Authority). With this program you can get: Up to the lesser of $25,000 or 3 percent of your first mortgage**
(Example: Get up to $6,000 on a $200,000 mortgage with no repayment required aka free money. I recently did a deal with a client who went through the CHFA program and got $16K towards his $500K purchase! Most states have similar programs for new home buyers.
Reach out if you want to talk more specifically about the MTR strategy and different ways to leverage your savings for that first purchase.
Good luck to you!
[email protected]720-295-1082
Ten Ridge Realty LLC514 Reviews
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