All Forum Posts by: Tyler D.

Speaking from a population/job/rent/appreciation growth standpoint. I'm not looking to buy in Mayberry, South Dakota for cashflow.

Obviously, this is impossible to know for sure, but we could make some good educated guesses based on trends.

Large cities like NYC, DC will surely continue to grow. California (SF/LA/SD) may or may not, due to an array of systemic problems (taxes, homelessness), but also a huge amount of high-paying jobs and top universities.

Texas/ Florida both seem to have potential, but it's unclear if the move there is something with staying power or just a short-term trend. 

Puerto Rico seems like an interesting play as well. Incredibly low taxes, which could encourage more Americans to move there, but we're far away from that happening in any major fashion.

Seattle/ Phoenix both seem to be strong contenders, but extreme weather could hamper these cities' growth.

What do you think will be the best place to invest for the next 30 years?

I'm currently going through a career change and living in the bay area. As I'll be working in tech, this is where I plan to stay for a longer time. I am retraining and not working yet, and have 500k in cash.

I'd like to buy a property to live in but have a relatively small amount of cash compared to the prices of homes here. I'd like to know from those that live here:

1) Is it worth investing in the Bay Area now? There is a lot of talk about Austin/Seattle/NYC, but the SFbay still appears to be the leader in the tech scene. What's unclear is if that trend will continue.

2) Assuming no limits on buying power, which would be the preferred property types to buy? I may be wrong on this, but condos seem like a rip-off despite being cheap. Their price/sqft is not great, and some condo fees are downright criminal. Long term, I think it would be preferable to have an SFH or 1-4 unit that I own completely, but I'd like to hear what you think offers the best bang for the buck.

2b) Thoughts on buying raw land and doing construction? I've seen several plots in the low hundred thousands, even some below 100k. It seems you could conceivably build a brand new home for a relatively low price.

3) Playing off of number 2, can you buy anything that would make a good investment with 500k? Would I be better off waiting several years and buying something with a tech salary?

Thanks for the advice!

Hi BP,

I'm an OOS investor with a goal to buy property in FL over the longer term. I don't need an immediate cashflow, and would prefer the area that has the best long-term returns as a combination of CF and rent growth/ appreciation.

Orlando, Tampa and Miami are all very popular right now, but I don't know much about them aside from numbers I've read online and where they are on a map. I'd like to know your opinion on which of these (if any) are the best.

I'm also looking at Lakeland, as its location in between Orlando and Tampa seems nice, and it could grow along with them. According to google maps, it's a 40/60min commute respectively, so I'm also interested if people commute from there.

Thanks for the info Sean. Based on this, it sounds like it makes lot of sense to buy a fixer and lock in that low rate.

I'm interested in buying an investment property in California, largely due to the advantages of prop 13. As I understand it, it caps property tax raises to 2% per year, which is hugely beneficial in areas that appreciate at much higher rates.

I'm curious on the details of prop 13, for example how it works with renovations. If I were to buy a beater for half price, then fix it up to its original value, would the property taxes be reassessed, or remain locked at the purchase rate? 

Also, what if you bought at the top of the market, right before a downturn in prices? Say there is a 50% downturn in prices, would my property taxes be locked in at the lower value, then only able to be raised 2% from there, or would it keep its baseline set on my purchase price?

I live in the SF bay area, and given the incredibly high costs of buying, I have been renting so far. Of course, rents are also high, but they are often cheaper than PITI without any of the risks, so it has made sense so far.

However, I'm considering buying a home that I will live in while renting out rooms to hopefully turn a profit. I know that SF is incredibly tenant friendly, but as I understand things, I have much more control over my property if I am also living there, and will be more easily able to raise rents and/ or evict problematic tenants as needed. 

Is this something that would be reasonable to try, or is it not worth it due to some factor I haven't considered? IF it is worth it, what are your suggestions on how to achieve it? Thank you in advance for the help.

I'm looking to buy in the SA/ Austin area for appreciation/rent growth, as I see great long-term potential in this area.

I am currently looking at the I-35 corridor, including NE San Antonio, New Braunfels, San Marcos and Kyle, but also interested in other areas that may have potential away from this corridor.

What do you recommend for good growth cities/ neighborhoods in these two cities?

I do make more from my career than I would with just real estate, and it will continue to be that way for quite some time.

Luckily, I don't need to choose one or the other. My investment strategy is to save aggressively, make a good return on it and compound over time. If I can make 10% with minimal time invested, I'm very happy with that.

Since we have two very different strategies for REI, it would be hard for us to relate. We're coming at it from two completely different angles.

I started investing a couple of years ago, and since then, it seems like the market has gone from hot to insane.

Currently, I've been searching around in a city I chose, that isn't on any of the top lists for real estate investment, and there is such incredible competition here that any deal that is remotely good is gone almost immediately. I have heard from local agents that there are many out of state investors throwing money at bad properties, sight unseen.

Add to that many areas have seen ~10% appreciation in 2020, and are expecting the same for 2021. That can't realistically continue for a longer period of time. 

My gut feeling tells me that we are in a period of irrational exuberance. It seems like there is so much competition that it may be better to invest elsewhere until the market returns to a state of normalcy. I'm sure many of you will have a different opinion on that matter.

What are your thoughts?

Does anyone have any experience/ success with this strategy?

I started researching REI a couple of years ago, and have dedicated a massive amount of time to learning and searching for properties. I want to expand my holdings, but it seems like most of the people here treat REI as a full-time or at the very least a part-time job.

Optimally, I'd like to spend minimal time acquiring properties. I already know the inspection, due diligence, management side, so I feel comfortable there, and I'm happy to do some repairs. However, I'm not at all interested in spending hours scouring the MLS, networking for off-market deals, running marketing campaigns, etc to find the best possible opportunity. REI for me is something I want to be as hands-off and passive as possible.

Is it realistic to succeed in REI without searching for the best possible deals, or am I better off with a completely passive investment, like the stock market?