All Forum Posts by: Susan O.

 Isn't the midwest like Ohio declining populations?  I thought most of the Rust belt is lowering population and lowering job growth for many decades and will continue?

They're decent for cash flow but appreciation is low because of the aging and decling populations. Baby boomers moving to sunnier weather and younger people moving to Sun belt- NV TX FL GA SC CO ect

Columbus, Ohio has seen a rapid growth in jobs and population.

Comps don’t lie. So I always go off of ‘SOLD’ comps and rental comps. People will overlook a lot for location. So although things like school ratings, crime rates, sex offender registry’s, etc would often time impact where someone will buy/rent property, sometimes people will overlook those things bc of other factors they consider more important (generally location).

I pull sold data through a variety of software to analyze accurate ARV or for estimating appraisals.
my method for determining rent comps is pretty basic. I simply Call up active rental listings in the area and ask what the rent is for a comparable property, 
or look at rental websites for Similar properties close to the subject property.

First, can you explain to me what the heck you're mumbling about in the first 4 lines of this post?

Second, if you're a smart REI, you're not choosing between CF and appreciation. You're looking for both.

Third, what makes you think the mid west down't have appreciation?

WHAT?

All these things you mentioned will likely change in less than a decade! Who knows! 

Focus on the NOW and adjust on the "NEXT" as things change.  You can't be successful if you are thinking 20 years ahead and speculate as such on a Real Estate Market, not to mention wait that long.  It just doesn't make sense to me. 

The Florida panhandle (Pensacola to Panama City) can be a great place to look into. Our markets aren't as saturated with investors as bigger cities like Tampa, Miami, or Orlando. We have a strong military presence (from having four military bases and multiple schools located within the 100 mile stretch of the coast) and a strong population that comes for vacation. With the large military population and all of them receiving a basic allowance for housing (BAH), it is guaranteed renters with new families coming in every few months/rotating out every 3-5 years. Their BAH essentially creates a government backed/ guaranteed rent check every month that is set according to local rents (kind of like having HUD tenants).

Follow jobs, schools, railroad, and new highways on a local level.  

Memphis is declining in population but,

Ford announced a development just east of Memphis with 30000 jobs affiliated and a second 3600 acre supersite is announcing soon in North Miss. near Memphis with 20000 plus more jobs.  The N. Miss. jobs followed a intermodal with rail that already has brought in Volvo, Amazon, Kellogs, Post cereal, Michelin tire (TBC), Milwaukee tool, Nike, McCormick spices, and six more in process.  Diverse companies that will endure a recession.

Arlington is a community east of Memphis that will be a great rental or flip area with a great school, but sellers have priced for that.

New subdivisions going in around industry mentioned above in North Miss. in small communities there.  1-269 from Mexico to Canada through it and workers can live a bit further with that type commute.

Personally we land bank ahead of those trends, but most investor sales here are cash flow rentals.

There will be a local area or micro area near you that is doing a similar short and long term growth job growth, etc. 

Quote from @Susan O.:

I was wondering what you all think are some good solid markets:

Rising Populations - Migration expected to increase

Solid strong economy. With different industries

Jobs Jobs JOBS long term

Good weather long term - despite global warming, temperate climates - I know CA is the only place with really good mediteranian weather, but I live here so wanted to buy oos.  

I was thinking Texas, Florida, West etc. Sun belt areas. Which specific cities look good for both GROWTH and some CASH FLOW or opportunities long term?

What do you all think about high cashflow (lower appreciation areas) like the mid west, MN, Upstate NY etc?

I plan to be expanding more into new markets. Mainly multifamily but could consider other ways too

It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.

As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

Co-Star for CRE.

@Susan O. my opinion is that, if you are going to invest out of state, you really need to get to know the target market in a way that you can't just Google.  This could mean visiting, seeing properties, networking, building your Core 4, etc.

Or you can check out previous threads on BP about which specific markets and sub-markets OOS investors buy in.