All Forum Posts by: Mike D'Arrigo

@Jagger Simon you need to narrow that done a lot more. Ohio is a state with a lof of different markets--some much better than others for real estate investment. Have you identified a particular city within in Ohio and have you clearly established your objectivse and criteria? It sounds like you still have some work to do. I'd be happy to help or offer advice it I can.

@Rajiv Bm start by clearly identifying your objectives and criteria and quantifying them. The more specific you are upfront, the easier it will be to narrow down your chosices. If your strategy is long term buy and hold, look for markets with good growth potential and not just immediate cash flow. No one gets rich off of cash flow alone and in fact, on average, only about 1/3 of returns come from cash flow. Real wealth comes from investing in markets with long term appreciation potential and rising rents. Start by identifying states with low to moderate property taxes and insurance and favorable landlord tenancy laws. Then look at the markets within those states that have growing populations, jobs and incomes. Look for markets that have modern/diverse economies and industries. These are the markets that will have the best long term appreciation potential rental growth. Personally I like Indianapolis, Kansas City and the Quad Cities. We've been active in all of them for years and they check off all of the boxes above. Feel free to connect and I'll be happy to share more insight on any of them and how to go about choosing a market.

@Elaina Burkhart start by identifying states that have low property taxes and insurance and favorable landlord/tenant laws. Next look at the economic and demographic trends at the markets within those states. The most important metrics that I use are population growth, job growth and incomes. You can find all of this at the U.S. Census Bureau and Dept. of Labor Statistics. Then research economic growth in the area. Look for markets with modern/diverse economies and industries. These are the factors we use when evaluating markets. 

@Tammy Ginsburg Your market has bigger problems than just being crazy expensive. On top of that, you have some of the highest property taxes in the nation and MA is not a landlord friendly state at all. If you're going to go out of your market I would recommend better cash flowing markets in the Midwest. Personally, I like Indianapolis, Kansas City and the Quad Cities. If you want more insight or perspective on any of those markets, I'd be happy to help.

@Jeremy Holden I have extensive experience in several Midwest markets. Feel free to connect and I'll be happy to share my insights and perspectives. I think the markets that you named are good but I would also add Kansas City and the Quad Cities to your list.

@Bob Stevens you've given some great advice. I hear the same thing over and over and people make it sound easy. It's not easy and things go wrong. This is especially true for new, OOS investors. Even with smoking hot deals, there is no gaurantee. One of the biggest problems today is getting reliable contracors with today's labor shortage and then tring to manage them remotely. Also, wiht material shortage rehab cost are so high right now that unless you have reliable sources and buying power it can be difficult to get rehabs done on budget. 

@Lucion Pennant keep in mind that NJ has very high property taxes and it is not investor friendly at all. It wouldn't be on the top of my list. We've had a lot of success with small/medium apartments in the Quad Cities. 

@Rick Tabarez Texas wouldn't be my first choice. TX has some of the highest property taxes and insurance rates in the country making it hard to cash flow. If your goal is cash flow, you'd do a lot better in some of the Midwest markets. My personal preferences are Indianapolis, Kansas City and the Quad Cities. We're active in all of them. I'd recommend turning your attention to some of these better cash flow markets but just make sure they also have good prospects for long term appreciation.