All Forum Posts by: Lance Knapp

@John Van Uytven do you have a preferred way to get data on job growth, schools and population patterns?

@John Van Uytven your post is actually very useful. I think what you are saying about trust is huge. I am going to tap into my network and see where friends live and where could be a good place to invest. To answer some of your questions, I am planning on purchasing a buy and hold rental apartment that I hold for years. As for the numbers I came up with, those are basically out of thin air. I simply want strong cash flow with potential for appreciation. In West LA there is potential for appreciation but no real cash flow for someone purchasing today.

Thanks again John.

Hi All,

I am a first time real estate investor approved to buy a property that is about $1MM. I am from West Los Angeles, CA, which is a market where cash flow is hard to come by. I have decided I may need to invest out of state to reach my investment criteria. Does anyone have unbiased advice or some ideas on where I should invest if I am looking for a 7% cap rate and 3% annual appreciation (if that deal exists).

Thank you in advance for any help, I really appreciate it!

-Lance

All, I cannot thank you enough for these thoughtful responses. They are extremely helpful for me. To address @Chris Dawson, my goal is to buy and hold a property with strong rental income and gain some modest appreciation over time - perhaps 3% annual appreciation with a 7% cap rate (if that exists). Your response opened my eyes that LA may not be the smartest market for this. @James Wachob, do you think there could be deals in Memphis that I would be interested in?

Anyone else have any suggestions for where may be a smart place to invest for strong rental income and modest appreciation over time?

@Chris Collins , @Glenn Humphreys and @Nicholas Smith Thank you for your thoughts on investing today. It seems like it could go either way. Nicholas - your move to renting may appear extreme but could be the most lucrative choice of your life.

@Account Closed thanks for providing those websites! I will begin researching and see what I can find. As for what you said about rents having appreciated since I moved here 3 years ago, you are absolutely right. My concern is that wages have not grown with rents and the underlying economy may have weaknesses. I don't want to be caught chasing or "swimming naked"

@Ali Boone thanks for the reply Ali. Is there anywhere in particular you have invested in recently that you would recommend?

This is great advice Bob, very much appreciated. What is the best source of rent growth and appreciate rate data? Thank you!

interesting question. I guess nothing is guaranteed.. An appeal to LA is definitely population density, so even though there are thin returns perhaps the market is safer.

Once again I appreciate the advice and am not trying to be pessimistic. I simply am looking for an experienced investor to give some insight on why there would be appreciation in West LA from here since it has already appreciated so drastically in recent years. Deals today lack income, so I am trying to wrap my head around why to invest now. Thank you

You said that I should be more interested in rental growth and appreciation. And I said rental growth and appreciation is not guaranteed. See what I mean?