All Forum Posts by: Trevor Fleck

@Zeb Duncan couldn't agree more with @Brenden Mitchum that at the end of the day you have to just pick one. In addition to what was mentioned, you can quickly hone in on a few states if you start looking at things like the Sunbelt states (where the population is expected to grow the fastest over the next 30 years), landlord-friendly states, places people want to live now that they have an option with remote work (think mountains, lakes, oceans, etc.). I could make a case for a dozen different secondary markets with good cash flow and a high likelihood of appreciation. For me, that included places like Little Rock, Fayetteville, Huntsville, and Cape Coral. 

In addition to doing your own market research, feel free to shamelessly leverage the research of others. For example, talk to some turnkey companies like Rent to Retirement who are in many markets and see what they think of different markets. Look at real estate crowdfunding sites like Fundrise and see where they invest and why. 

Even after you have a market nailed down, your work is honestly just starting. It's much easier to tap into an experienced team with a turnkey provider at first and then branch out from there. Building your own team can be done, but be honest with yourself about your bandwidth. I think many people on BP celebrate the DIY model out of state, but gloss over the hundreds of hours spent finding and managing that team. Happy to chat more if it would help. 

@Account Closed are you doing a 1031 exchange or did you live in the multi-family? My expertise is more on the single-family side, but if that's of interest to you, you may want to check out Cape Coral. I've got four new build to rents going on there right now and with the first one finishing next month I'll be able to pull out all the money I have in plus an additional ~$50k to rinse and repeat. 

@Trish Giassa I'd second Joseph's endorsement of Rent to Retirement. I've secured 6 properties through them and counting. Right now, their new construction (build to rent) opportunity in Cape Coral, FL is one of the best I've seen. I have four new builds ongoing with them and my first will finish next month. I'd be happy to chat about my experiences since you mentioned wanting to invest in Cape Coral. I did look at Norada as well, but price points were better with Rent to Retirement. 

@Eddie Lozada check out Rent to Retirement. I've invested in 6 properties and counting with them. They are in Pennsylvania for sure and I believe South Carolina. Happy to chat more about my experiences if you'd like. 

@Chris Criss I'll second some of the comments made by @Cameron Braig. The largest population growth over the next 30 years according to the US Census Bureau will be in the Sunbelt areas. Good weather, lower taxes, business-friendly, and landlord-friendly. It's also where a lot of the institutional money is going in either apartment value-add or build to rent strategies. Some markets like Raleigh, Tampa, Atlanta, Charlotte, etc. have already appreciated a bit too much in my opinion for much of a cash flow play. However, there are many secondary markets to consider. The Triad area (Greensboro, Winston Salem, High Point) would be one to consider. I'm from Raleigh, but personally investing in Huntsville, AL and Cape Coral FL with new construction to rent. 

If you're new or just don't have time any longer like me, you may want to consider turnkey. I've personally had great success with Rent to Retirement. They are in a lot of the markets in the Sunbelt and may be worth looking into their market research. Good luck!

@Jim Pfeifer I totally agree. Seems so many investors start out hustling whether it's wholesaling, DIY rentals, rehabs, maybe turnkeys, but eventually migrate to either lending (becoming the bank) or syndication deals. Curious, have you used or poked around on a site called the Real Estate Crowdfunding Review? Seems to be a really great way for accredited investors to vet and tackle syndication deals in an almost team-like fashion. 

@Yin Wu sorry to hear your experiences in Birmingham aren't as great as they used to be. Is that due to maintenance issues, tenant issues, combination? I'm curious how you settled on Columbus and Atlanta in specific. They are very different markets with arguably different strategies to be successful. 

If you have some appreciation in your Birmingham properties, have you thought about 1031 exchanging into markets with a higher likelihood of appreciation? For example, I had properties in several states, and those that had appreciated I 1031 exchanged into properties in Huntsville, Alabama and Cape Coral Florida which are both very desirable areas with good cash flow and a strong likelihood of continued appreciation. 

@Thomas Bidwell In my experience, if you're more than a couple hours away, you might as well open your search up nationwide because you aren't going to head out to a property a few hours away if some maintenance issue occurs. Managing rehabs from afar is not easy. The good contractors are often either highly priced or booked out because they are good. If you're new to the market you'll have a harder time finding someone reliable. I've also found through trial and error that a contractor might be good on one job, but then disappear or completely fall off the grid. It's truly hard to establish a consistent team - things change. 

I started going the turnkey company route back in 2019 when I had young kids, a demanding job, and just no time to continue vetting new markets and building teams. I started by reading reviews on BiggerPockets, calling turnkey companies to learn about their operations, and eventually visited a couple to see the quality of their builds. You may want to consider a route like this. 

@Davon Johnson I'd have to agree with @Lane Kawaoka that if you're new and not in an area with good cash flow, then out of state turnkey rentals do provide a way to tap into someone else's existing network with built-in guardrails. You'll also get a great education. Speak with ones that offer different types of investments (single-family, multi-family, syndications, etc.) in several markets and compare those markets. If nothing else, it's free market intelligence. I agree that there are markets with decent cash flow AND a high likelihood of appreciation. Remember, $200-$300/month in cash flow is nice, but leveraged appreciation is where the real wealth is generated. Position yourself in a market where you increase your odds of appreciation while having enough cash flow in case your market timing is off. 

Personally, I would think about larger macro factors at play that might help you whittle down your market choice. For example, where is the population growing the most in the country? (hint: it's not the Northeast or Midwest) What states are big companies moving to? (i.e., where are the jobs going) What states are landlord-friendly? Where some of the crowdfunding sites like Fundrise who has heavily analytical power investing their funds? Also, now that remote work has really taken off - where do people want to live? (near mountains, lakes, oceans, or university towns). 

@Jay Hinrichs what's stopping RE investment on those vacant lots in places like San Bernidino and Riverside? Lack of infrastructure? Getting easements?