All Forum Posts by: Matthew Stallone

Hey @Matthew Stallone, NC Investor checking in here. Might be helpful for the folks on here to know the criteria or returns you're looking to achieve. CoC, your liquidity, self-manage vs PM, and the tenant and asset class you're okay with working in. I invest primarily in the Triad here in NC which is comprised of Greensboro, High Point and Winston-Salem, and your market decision should be tailored to your returns goals and expectations.

Generally speaking - people are most-likely having success in any market you've got on your list, so you can too.

 I would look at the midwest, it sounds exactly what you are looking for. Great deals to be found, and really great cash flow. In markets with particular rent growth, job growth, population growth etc you can really hit some home runs 

@Matthew Stallone it really depends on your goals. Are you looking to maximize ROI or cash flow. Thinking you can do both is just wishful thinking. Now it is St. Patty's day so sometimes people get very lucky but you need to look at it like a scale. One side has projected appreciation, the other side has projected cash flow. When one goes up the other comes down. So pick one you want. You make more money on the appreciation side. Of course, appreciation is icing on the cake in most areas of the country. But if you look at the data, you will see some cities have high projected appreciation with low downside. Also note that just because you have negative cash flow in year one does not mean you won't be making positive cash flow in year two or three and still grabbing that appreciation. People ask me where is the next Austin and I tell them, as Elon Musk believes, the next Austin is Austin. It is setup to continue to climb and our prices are still half of those like Seattle, San Fran and other cities. $350,000 brand new 3-4 bedroom home 20 minutes from downtown. $400,000 resale homes, 5 minutes from new Apple campus. Largest decrease in price in 40 years in Austin has been 2.9%. My money is here and will continue to be here for awhile. If not Austin, find a city that has a big government job sector for protection and also bringing in lots of new jobs in tech and other areas. Cash flow will come but the real money is in the overall return.

@Matthew Stallone I don't want to be discouraging here... but cash flow is difficult to find (unless you put higher down payment $s down) in this environment in growth markets.  So, if you're investing for cash flow you will probably need to focus on secondary or probably even tertiary markets. Of those you listed Pittsburgh is probably your best bet for cash flow, but it won't have stellar growth statistics vs. many other cities.    Also, remember that markets are cyclical and so the environment is bound to change with some of the macro-economic and geo-political events that are at play.

Even though I'm bullish on North Carolina for appreciation potential, it sounds like your aim is for cash flow so I also vote Ohio. Columbus or Cincinnati. Furnishing and renting to travel nurses, which are abundant in these cities, will maximize your ability to cash flow. 

I also don't think it matters a ton in where you choose but mostly that you focus. A deal can be found in any market, even on the MLS. If you don't focus, you won't recognize it when you see it.

bestplaces.com is a good site from data on different towns. 

@Matthew Stallone I noticed that you mentioned Columbus. That is the market I focus on as well. Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.

https://www.dispatch.com/story/business/2022/01/21/intel-ohio-building-computer-chip-factories-licking-county-jersey-township/9173472002/

Here are a few more recent investments https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbus