Debating between markets

[Mike Most]

Hi,

I have done and still own some small multi families in NJ area since I live with in the hour drive. Being that competition is big, it no longer makes sense the numbers that have to be offered in order to get the deal.

I’m looking in to shifting to out of state and I’m open to be on site pretty often by hopping on to a flight.

I’m debating between markets in TX and Ohio but in the same time willing to hear that I’m completely off between these 2 states or that their are better.

I am looking for places where population is growing, prices are not too high, landlord friendly, rent are above $1200 for 2BR, big businesses and jobs and a very big focus by me is to be in a safe area.

I would appreciate if I can get some honest opinions on this. TIA

[Ty Coutts]

Shifting your focus to out-of-state markets like Texas and Ohio can be a good strategy. Texas cities like Austin, Dallas, and Houston are experiencing population growth, have strong job markets, and are generally landlord-friendly. Ohio, particularly cities like Columbus and Cincinnati, offers lower property prices with decent rental yields and growing populations.

Both states meet your criteria, but Texas might have higher property prices compared to Ohio. Consider factors like flight convenience, property management options, and your comfort level with the local market conditions. Research specific neighborhoods for safety and rental demand to ensure they align with your investment goals.

Hope this helps. Feel free to reach out if you have any other questions

[Bradley Buxton]

@Mike Most

Look at the rental data and housing supply. Some markets like TX, ID, and to some extent AZ have been building a lot of housing supply and are seeing vacancy rates increase. Also calculate in more insurance and taxes depending on the state. TX and FL have both seen huge increases in insurance rates. 

[Mike Most]

Quote from @Ty Coutts:

Shifting your focus to out-of-state markets like Texas and Ohio can be a good strategy. Texas cities like Austin, Dallas, and Houston are experiencing population growth, have strong job markets, and are generally landlord-friendly. Ohio, particularly cities like Columbus and Cincinnati, offers lower property prices with decent rental yields and growing populations.

Both states meet your criteria, but Texas might have higher property prices compared to Ohio. Consider factors like flight convenience, property management options, and your comfort level with the local market conditions. Research specific neighborhoods for safety and rental demand to ensure they align with your investment goals.

Hope this helps. Feel free to reach out if you have any other questions

 Thanks loads

[Mike Most]

Quote from @Bradley Buxton:

@Mike Most

Look at the rental data and housing supply. Some markets like TX, ID, and to some extent AZ have been building a lot of housing supply and are seeing vacancy rates increase. Also calculate in more insurance and taxes depending on the state. TX and FL have both seen huge increases in insurance rates. 

 Really appreciated your. 

[Mike Most]

Quote from @Mike Most:

Quote from @Bradley Buxton:

@Mike Most

Look at the rental data and housing supply. Some markets like TX, ID, and to some extent AZ have been building a lot of housing supply and are seeing vacancy rates increase. Also calculate in more insurance and taxes depending on the state. TX and FL have both seen huge increases in insurance rates. 

 Really appreciated your input.

[Jake Forehand]

Quote from @Mike Most:

Hi,

I have done and still own some small multi families in NJ area since I live with in the hour drive. Being that competition is big, it no longer makes sense the numbers that have to be offered in order to get the deal.

I’m looking in to shifting to out of state and I’m open to be on site pretty often by hopping on to a flight.

I’m debating between markets in TX and Ohio but in the same time willing to hear that I’m completely off between these 2 states or that their are better.

I am looking for places where population is growing, prices are not too high, landlord friendly, rent are above $1200 for 2BR, big businesses and jobs and a very big focus by me is to be in a safe area.

I would appreciate if I can get some honest opinions on this. TIA

Either way, I would get on a plane and check out the cities in person. Check out a few properties, scope out and take note of the different neighborhoods. What matters is that you have more knowledge about an area than your competition and you have the correct team established. I'd be happy to get on a call and answer any questions.

[Marco Fiore]

Hello,

Lots of great questions here. I am a realtor here in Cincinnati and work with majority of out-of-state investors. Even with low inventory, they have found lots of success in the Cincinnati market. People come from all over the country because in the midwest and specifically Cincinnati, it costs less. This includes overall sale prices of homes, taxes, etc. while still seeing a strong rent yield. Long story short, it is easier to cashflow in this market. 

I sent you a message! Would love to talk more about Cincinnati and what it has to offer!

[Bruce Lynn]

I think TX and probably more specifically North Texas meets most of your criteria.  Not sure the competition is any less and right now rents probably have not kept up with sales prices so are a bit out of balance.  Typical deal I see will probably need 30-40% down to break even or cash flow.  Rents will likely start to increase again in 2025 is my thought, but you probably can't wait until then to buy as home prices will have moved up again.   Lots of dynamics moving in favor of owners/landlords and against renters.  Great chance we are quickly creating a permanent class of renters or expanding it.

[Sam McCormack]

Quote from @Mike Most:

Hi,

I have done and still own some small multi families in NJ area since I live with in the hour drive. Being that competition is big, it no longer makes sense the numbers that have to be offered in order to get the deal.

I’m looking in to shifting to out of state and I’m open to be on site pretty often by hopping on to a flight.

I’m debating between markets in TX and Ohio but in the same time willing to hear that I’m completely off between these 2 states or that their are better.

I am looking for places where population is growing, prices are not too high, landlord friendly, rent are above $1200 for 2BR, big businesses and jobs and a very big focus by me is to be in a safe area.

I would appreciate if I can get some honest opinions on this. TIA

 You may like something like Northern Ky/University of Cincinnati. Would love to talk about it more if you can hop on a call soon!

[Drew Sygit]

Have you looked into Detroit?

[Remington Lyman]

Quote from @Mike Most:

Hi,

I have done and still own some small multi families in NJ area since I live with in the hour drive. Being that competition is big, it no longer makes sense the numbers that have to be offered in order to get the deal.

I’m looking in to shifting to out of state and I’m open to be on site pretty often by hopping on to a flight.

I’m debating between markets in TX and Ohio but in the same time willing to hear that I’m completely off between these 2 states or that their are better.

I am looking for places where population is growing, prices are not too high, landlord friendly, rent are above $1200 for 2BR, big businesses and jobs and a very big focus by me is to be in a safe area.

I would appreciate if I can get some honest opinions on this. TIA

 I have been purchasing in Columbus, Ohio since 2017. I think it is a great market to buy rentals in. Population has been booming

[Alecia Loveless]

@Mike Most If you look at Texas be sure to consider the property taxes and not just the current year compare the last 3-4 years as well.

I have family with a portfolio in North Texas and over the past four years their taxes have increased 100% or more per property for no increase in the services provided to them.

The towns are having to spend money on infrastructure, school, and general growth related headaches due to the population explosion. This is frequently being seen in terms of massive tax increases.

Not saying it’s not a good location to invest in. Just be aware.

[Anna Laud]

@Mike Most The Great job on building your equity base and how smart you are to be looking to othe markets, I work with out of state/country investors and help them create passive income with midwest rentals and here's a few things to consider:

- Competition is everywhere and only growing in any worthwhile area, so instead of looking for places with less of it I'd focus on building the team that can still deliver results. 

- The time is always NOW, so many people stayed out of the "fight" over the last few years and now with rate hikes they are kicking themselves because they missed out. Once you have an acquistion scheduled developed implement immediately, ignore the market and keep buying.

- There are great markets but saying "Texas" is pretty vague given it is bigger than every country in europe, again you want a specific team that delivers specific outcomes. North Texas is good, we do deals there and in Ohio, Cincinatti, Missouri, Michigan and my personal FAV Indy.

My biggest suggestion is to screen the TEAM more than the area, make sure they can deliver a specific result.  We help people create a six figure passive income for example and have the testimonials to show it, too many investors are the guinea pig.  The area won't matter if your team sucks.

If I can help please reach out - Thanks!  

[Min Zhang]

Hey Mike! I can’t speak much about other markets, but as someone who started off in Columbus, and grew up in Cleveland,I would say, the Ohio market in general is a very beginner friendly state. I have real estate investments both in Cleveland and Columbus.  I have seen so much growth in Columbus when it comes to appreciation and job opportunities. On the other hand, if you have a lower budget, let’s say $100-$150k. Cleveland would be a great market for you. I have experienced cash flow anywhere from 10-18%. Feel free to reach out if you want to know more about these markets.