All Forum Posts by: Maxwell Lee

 They appear to use MSA data so it should be inclusive. I am just wondering if you all think that southern IN presents similar opporunity. New Albany, Jeffersonville, etc. Thanks!

Does this apply to the IN side of the metro? What are your thoughts? 

 Ah ha so it's not really free. 

It took me a few moments to let your comment sink in @Mike Dymski

At first I was thinking, well I don't think I lack scale. We've got more than enough going on in each of our markets. But then I realized how it does affect me...if I enter a new market, I must do so very deliberately, with an intention to scale before too long. Thanks!

@Account Closed I don't get it...time of week? On a billboard? Sorry it's gone over my head! Yes I'll shoot you a message. 

 1.5-1.75% price-to-rent. 

Don't know about insurance premiums in South Florida. Haven't seriously researched for investments and in fact we're renting. 

I'll give you a bit more than you asked for...

Currently invested in two markets:

1) Jax 2) Indy. Both offer low price points, strong cash flow, good growth metrics, fairly easy to travel to. 

Have researched and made offers, but nothing purchased yet:

3) Atlanta - mature market but still really strong growth potential, personal familiarity, decent price points and decent cash flow.  

4) Chicago - possible future retirement location. In the right neighborhood, potential major appreciation longterm. 

Researching with great interest but not quite ready to pull the trigger:

5) Tampa - Just sold a multi so no longer have any property in this market. But if we decide to diversify within FL this would probably be the area. Have some familiarity. 

6) Philadelphia - Like Chicago, possible future retirement location and potential major appreciation longterm. 

7) Louisville - I think this metro has a shot at being a Denver/Austin/Portland. A city that 15 years from now we look back on and marvel at its explosion in hipster popularity and lament the insane real estate prices :) 

8) NWI - Offers proximity to Chicago along with the low price points and strong cash flow (and pro-landlord laws) that are found in Jax and Indy. 

Depends what you are looking for. But I agree these are all good. We are heavily invested in Jax and Indy and earlier this year I made several offers on properties in ATL that were probably less than $1k from getting completed...but I was stubborn and held firm. 

Generally speaking, ATL is several phases further along. Prices have risen a lot, there's been a lot more development, far more gentrification in larger swaths of older neighborhoods. It would seem the concern would be whether there is still room for significant appreciation. But ATL is also a totally different beast...much larger metropolitan area, bona fide global city, and it still has a very positive trajectory. 

Indy and Jax are great smaller markets. Strong economy, strong rental markets, great cash flow. They both have a lot of older neighborhoods that have varying levels of redevelopment potential, as well as cheap suburbs that attract many investors. They're both really hot markets which I find means you have to watch out for unscrupulous partners (contractors, wholesalers, etc) moreso than just fighting more competition. This applies to ATL too I guess. 

All of that said, I wont claim these three to be the best three markets to invest. Just happened to be best for us given personal history/connections.

What a saga! Thanks for the recap/resolution. Glad it worked out for ya, @Stewart McMillan

Just to bring this to a conclusion:

We successfully sold the property on Monday. It was a duplex pulling in $1600 but actually losing money when you factor in vacancy, maintenance and capex. We sold it for $151k after 2 months on the market (including about one month with the main unit vacant). 

Anyway I consider it a victory...we successfully staved off two lowball offers in the 120s and avoided having to do any repairs for tenant turnover (or any repairs at all for that matter). And my wife's loan was paid down more than expected so we walked away with a decent chunk of change. With this sale we are now consolidated to the Jax and Indy markets. I would certainly consider Tampa/St Pete in the future however. 

Thanks for your advice here. Onto the next one!