All Forum Posts by: John Boland

@Ivan Guillen Thanks for responding! How many properties do you own to rent there? Indy is certainly an outside spot I've been considering and it seems a bit under the radar. I went there in October for the first time for a show and really loved the vibe of the city. A lot of character in all the old buildings and the people were really friendly. I'll certainly keep you in mind if I have further questions about it!

@Kiera Underwood thanks for the info! I had never considered OKC before. Mostly was looking at the southwest, but OKC has a surprising amount of population growth that looks to continue into the future, which is a huge plus. The low purchase prices are also very enticing as I may be able to start with 3 properties instead of 1 or 2 locally. Do you have any data on what the GRM for the area is? Also, average rent in the area is really quite low. Do you see rents rising much in the future or do you know what the vacancy rate is like in that area?

Hello all,

First post on here. Got my realtor's license in early September and have been having a fun time with my new job as a Property Manager as well as prospecting for buyer and seller clients. 

I'll jump quick to my dilemma. So, next September, I will be fortunate enough to receive a sum of money. I'd like to put it into investment properties but am conflicted as to where I should put it. Currently i live in Champaign, Illinois. It is honestly a less than ideal area to invest in. Since 2013, there have been around 4600 beds added for student housing but college attendance has only increased by 2000 in that same amount of time. Even outside of student living, the market for SFR rentals is pretty oversaturated. Add in that the supply of homes in the $130K-$170K range is extremely limited (due mostly in part to the aforementioned market saturation), thus making finding a good deal an even harder search, makes me think that my money would be better invested elsewhere. I've used the cash flow calculator on here for a couple properties that interested me and positive cash flow on all of them was negative the first 5 years, assuming I bought near list price which is most likely. In addition, it's Illinois, and property taxes will eat my margins more than elsewhere.

If I did decide to invest outside of my market, I would be able to go to wherever the top markets are, and could use a property management company to help decide which houses and neighborhoods would be ideal for me to invest in. I am not so concerned with the quality of the PMC, as I would probably use this website and multiple references to decide on which one to go with, but I am concerned that the cost of using one, even in better markets, would give me worse cash flow than investing locally and doing the management myself. 

Any advice or opinions on the situation would be greatly appreciated. It is still just under a year away but I'd like to be equipped to make the best decision when the time comes.

Thanks,

John