I'm searching for my next market foray. Tips? I've been doing mostly small multifamilies. Target acquisition price <200k mostly for duplexes, couple fourplexes. Here's my experience so far, in no particular order:
1. Huntsville, AL: Love the market. Have enough here. Always open to more but don't want to lay too many eggs in one basket.
2. Cleveland, OH: Good deals to be had. The taxes and POS scare away many people but if you have the means to deal with them and factor in taxes, you can still make >11% COC fairly easily. Have a few properties here, the holton-wise neighborhood grading system helped incredibly. Could go for a few more, but like Huntsville, don't want to lay too many eggs in obe basket.
3. Indianapolis, IN: Hot market...too hot. Looks like the best deals are downtrodden and renovation required. Trying one now, will see how it goes. New territory for me. Buy and hold, hard to find 1% rule, best way to make money seems to be the rehab. Also, looks like appreciation is being priced in.
4. KC: Similar to Indiana.
5. Memphis, TN: Don't have a good boots on the ground team. Also, multifamily seems a difficult route here.
6. Detroit: Scared of the market here. Did one SFR and waiting to see how it performs.
7. San Antonio: Hot market, lots of competition, keep getting beat out.
I have a few sub 70-80k houses and not thrilled about them. Waste of a mortgage given the fees involved. I prefer to jump up above 100k for a duplex or more.
Thoughts?
