@Roey Marom That data is definitely interesting. Prices here in Denver have increased dramatically in the past two years, but that is due to the dramatic increase in population. Since most rust belt cities have stagnant populations, it makes sense that investors competing with each other is what is driving up the prices.
@Joseph M. Have you made any purchases in those area? We're probably in somewhat similar situations where we live in markets that don't cash flow. I've purchased in Denver before and made great equity returns, but I'd like some properties that give good cash on cash return- which leads me to the Midwest/rust belt.
@Ritch Bonisa Sounds like Indianapolis and Cincinnati are working out for you then. Have you noticed an increase in investor activity?
@Tom Ott I feel like Cleveland is particularly hot. I'm looking a bit further south and it doesn't seem quite as saturated, but still a lot of rentals. I'm planning on staying in nicer neighborhoods that do appeal to owner occupiers in order to keep that exit option open.
@Andrew Johnson I've seen a lot of negative opinions about investing out of state on BP. I'm trying to understand those risks and mitigate them as much as possible. I lived in Akron from January 2016 through February 2017 (temporary work assignment), which is why I chose the area. I definitely fit the "younger people that have only seen appreciation" part. My husband and I both make six figures at our W2's, so most of the risks you mentioned would just get taken care of out of our salaries if the property hadn't accumulated enough capex savings or no longer cash flowed after a significant rent decrease. We're also buying highly distressed properties with the intent of doing the BRRRR method and forcing equity. My husband works from home, so he will go out to Akron during out first couple rehabs to oversee things until we find people we trust. This article made me more confident that I want to buy in neighborhoods that could attract home owners though.
