All Forum Posts by: John McDonald

Exploring markets like Memphis, TN, and certain areas in Alabama, and Ohio can be promising for your investment criteria. Let's break it down:

Memphis, TN: This market is known for its affordability and stable rental demand, thanks to a steady job market anchored by sectors like logistics, healthcare, and manufacturing. Neighborhoods such as Berclair-Highland Heights and Hickory Hill offer properties within your price range and are known for their decent cash flow potential.

Alabama: Cities like Birmingham and Huntsville are worth considering. Birmingham has a diverse economy and a strong rental market, especially in areas like East Birmingham and Hoover. Huntsville, with its growing tech and aerospace industries, offers potential in neighborhoods like Madison and Harvest.

Ohio: Cities like Cleveland and Cincinnati offer good opportunities. In Cleveland, neighborhoods like Old Brooklyn and Parma are known for their affordability and stable rental markets. Cincinnati has growing demand in areas like Norwood and Silverton, where property prices often fall within your range.

Regarding out-of-state rentals, it's crucial to have a reliable property management company, especially if you're new to this. They can handle day-to-day operations, tenant issues, and maintenance, which is vital for a smooth investment experience when you're not local.

Also, consider the following:

Economic Stability: Look for areas with diverse job markets and low unemployment rates.

Population Growth: Areas with growing populations often indicate a healthy rental market.

Rental Yield: Research the average rent in these areas to ensure your investment will generate the desired cash flow.

Remember, each market has its nuances, so thorough research and possibly a visit to the area could be very beneficial. Connecting with local real estate agents or investors through BiggerPockets can also provide valuable insights specific to these markets.

This is a great question and one that's at the heart of many investment strategies. The decision to accept negative cash flow depends on several key factors:

It's crucial to conduct thorough research on the local real estate market. Look for trends indicating strong potential for property appreciation. Consider factors like economic growth, employment rates, infrastructure developments, and population trends.

Are you looking at a short-term investment or a long-term hold? For a long-term strategy, appreciation and rent increases might offset the initial negative cash flow. However, it's important to have a clear timeline and understand the risks involved.

Can you sustain the negative cash flow without straining your finances? It's important to have enough reserves to cover not just the negative cash flow, but also unexpected expenses that might arise.

While rents may increase over time, it's not always guaranteed. Analyzing historical rent trends in the area and understanding the factors that drive rent growth is crucial.

Have a clear plan for if things don't go as expected. This might include selling the property or converting it into a different type of investment.

Every investment carries risk. Assess your comfort level with the potential downsides, such as prolonged negative cash flow or slower-than-expected appreciation.

It's always exciting to see new members eager to learn and contribute. You've joined a vibrant network of investors, each with a wealth of knowledge and experience. Remember that this journey is as much about learning from your successes as it is from your challenges.

 Don't hesitate to ask questions, no matter how basic they may seem. This community thrives on mutual support.

Looking forward to seeing your growth as an investor and your contributions to our discussions!

Welcome to BP. You're in good hands. Let us know if you have any specific questions.

Good luck on your journey.

Cheers,

Unfortunately, thats the cost of using someone elses money. While I can appreciate your desire to maximize your return, you're in a very good position and should just stick with your current lender.

Cheers,

Markets with a lot of activity and, ideally, going through gentrification, are generally the best markets for flippers and wholesalers. There are many of these markets in nearly every part of the country. We're seeing the most activity in the areas you would expect; texas, tennesee, north carolina, florida but we're also seeing strong demand even in areas you wouldnt expect, like Boston.

Good luck on your journey.

Our SARV calculation works well in urban areas but struggles in rural areas due to lack of qualified comps. We're looking to improve the calculation by increasing the range, up to 3 miles, but without fixed or new comps its challening to derive an accurate ARV. Market knowlege and gut feel take you the distance here.

Good luck.

Hi @Thomas Murphy. We're based in portsmouth so we're pretty familiar with the NH market. Low inventory, across the board, is causing prices top stay pretty firm. Ohio is market, as is Tennessee, texas, nevada, north carolina and several other markets, mostly off the coast. If you're considering investing remotely, a good property manager will pay dividends. They know the market and will be your feet on the ground. 

Good luck with your journey.

Cheers,

Hi @Matt Lopez. @Alan Asriantswould be a better help with the neighborhoods, but we're seeing plenty of opportunity in and around Philadelphia. Lots of deals starting as low at $15k!

Good luck with your investing journey. 

Cheers,

Welcome to BP @Danielle Carrillo. There's a lot to learn and it's an exciting journey. Orange county is a tough market to start in. Consider investing a little north or out of state, depending on your goals and available capital. 

Good luck. 

Cheers