Author Topic: Good Cities To Buy Rentals In?  (Read 6084 times)

malacca

  • Bristles
  • ***
  • Posts: 252
  • Location: Malaysia!!!
Good Cities To Buy Rentals In?
« on: April 16, 2015, 12:50:44 PM »
I am an experienced investor. I have flipped homes in three countries. I have a decent portfolio of rentals.

I recently sold some properties to fund a house purchase in southern California but decided not to buy right now - so have cash.

I was active in the Phoenix and Twin Cities markets but those are way overheated now.

So looking for a new city.

I usually buy properties that require cash (dramatic reduction in competition). Shorts and foreclosures are my specialty.

Any suggestions appreciated!

« Last Edit: April 16, 2015, 02:17:55 PM by malacca »

jnc

  • 5 O'Clock Shadow
  • *
  • Posts: 99
Re: Good Areas To Invest In?
« Reply #1 on: April 16, 2015, 01:24:24 PM »
I have bought several turnkey properties. These are NOT flips. I have bought them for their positive cash flow.
Most of mine are in Memphis, TN and some in Atlanta area. I was planning to also look at Little Rock (Arkansas).

Hope that helps. If you need any recommendations for turnkey properties, I am happy to suggest some.

sammybiker

  • Bristles
  • ***
  • Posts: 417
    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Good Areas To Invest In?
« Reply #2 on: April 16, 2015, 01:30:35 PM »
What are you trying to achieve?  Long term cash flow?  Shorter term gain?  Landlord role?  Private money investor?

Lots of options here...

malacca

  • Bristles
  • ***
  • Posts: 252
  • Location: Malaysia!!!
Re: Good Areas To Invest In?
« Reply #3 on: April 16, 2015, 02:06:46 PM »
sammybiker - Cash flow.

I can be the landlord or hire a PM. As stated, I will pay cash.

Might do flips if enough margin.

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5215
Re: Good Areas To Invest In?
« Reply #4 on: April 16, 2015, 02:25:16 PM »
Lots of folks out there with cash chasing short sales and foreclosures.  Inventory of those properties is down dramatically, banks have gotten smart and no longer sell cheap.  Midwest is probably your best bet.  I'm preparing a couple of long term rentals for sale in the hot markets to pay off debt on other properties.  Haven't seen anything worth buying in those markets in a long time.

waltworks

  • Magnum Stache
  • ******
  • Posts: 4374
Re: Good Cities To Buy Rentals In?
« Reply #5 on: April 16, 2015, 03:09:40 PM »
As of June I will have zero rentals left, because prices have gone up so much that they no longer make sense to hold.

I'd look at the Midwest, I guess. Slim pickings compared to 2008-2012 or so, c'est la vie.

-W

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28256
  • Age: -998
  • Location: Seattle, WA
Re: Good Cities To Buy Rentals In?
« Reply #6 on: April 17, 2015, 02:49:03 PM »
What are you trying to achieve?  Long term cash flow?  Shorter term gain?  Landlord role?  Private money investor?

Lots of options here...

Lots of folks out there with cash chasing short sales and foreclosures.  Inventory of those properties is down dramatically, banks have gotten smart and no longer sell cheap.  Midwest is probably your best bet.  I'm preparing a couple of long term rentals for sale in the hot markets to pay off debt on other properties.  Haven't seen anything worth buying in those markets in a long time.

As of June I will have zero rentals left, because prices have gone up so much that they no longer make sense to hold.

I'd look at the Midwest, I guess. Slim pickings compared to 2008-2012 or so, c'est la vie.

IDK why I check the RE section of the forums anymore, when all the right answers are already there before I open the threads.  :)

Also something to think about: Springfield.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5215
Re: Good Cities To Buy Rentals In?
« Reply #7 on: April 17, 2015, 06:44:01 PM »
Ummmm.....which Springfield?  Lots of states have cities named Springfield.

waltworks

  • Magnum Stache
  • ******
  • Posts: 4374
Re: Good Cities To Buy Rentals In?
« Reply #8 on: April 17, 2015, 08:00:21 PM »
I'm pretty sure that's a nod to the Simpsons.

I hear Shelbyville is a serious buyer's market.

-W

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28256
  • Age: -998
  • Location: Seattle, WA
Re: Good Cities To Buy Rentals In?
« Reply #9 on: April 17, 2015, 08:39:15 PM »
Ummmm.....which Springfield?

I leave that as an exercise to the reader.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5215
Re: Good Cities To Buy Rentals In?
« Reply #10 on: April 17, 2015, 09:05:52 PM »
Us old folks wouldn't get that.  I don't think I ever watched a complete episode of the Simpsons.  Archie Bunker, yes.  Homer Simpson, not so much.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28256
  • Age: -998
  • Location: Seattle, WA
Re: Good Cities To Buy Rentals In?
« Reply #11 on: April 17, 2015, 09:12:39 PM »
Well then it'll be left as an exercise to another reader, not Another Reader.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Elderwood17

  • Pencil Stache
  • ****
  • Posts: 525
  • Location: Western North Carolina
Re: Good Cities To Buy Rentals In?
« Reply #12 on: April 17, 2015, 09:22:08 PM »
I'm pretty sure that's a nod to the Simpsons.

I hear Shelbyville is a serious buyer's market.

-W
Capital City is the place to be though.

waltworks

  • Magnum Stache
  • ******
  • Posts: 4374

malacca

  • Bristles
  • ***
  • Posts: 252
  • Location: Malaysia!!!
Re: Good Cities To Buy Rentals In?
« Reply #14 on: April 18, 2015, 10:43:32 PM »
That's all anyone can come up with? Crowd sourcing failure.

iamlindoro

  • Handlebar Stache
  • *****
  • Posts: 1520
    • The Earth Awaits
Re: Good Cities To Buy Rentals In?
« Reply #15 on: April 18, 2015, 11:52:31 PM »
That's all anyone can come up with? Crowd sourcing failure.

Crowd sourcing is your method of finding viable rental markets?  Real Estate Investor failure.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28256
  • Age: -998
  • Location: Seattle, WA
Re: Good Cities To Buy Rentals In?
« Reply #16 on: April 19, 2015, 12:12:41 AM »
That's all anyone can come up with? Crowd sourcing failure.

Do a search and read the discussion around when this has been asked before.  It seems like it will enlighten you.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

waltworks

  • Magnum Stache
  • ******
  • Posts: 4374
Re: Good Cities To Buy Rentals In?
« Reply #17 on: April 19, 2015, 08:33:48 AM »
Not at all. You got your answer - there is no crazy free money hot rental market like 2009 Las Vegas out there. Period. You will have to pound pavement and work phones and direct mail and sweat your way to finding something.

Also, since you're RE at 40, presumably it isn't a big deal to you?

-W

That's all anyone can come up with? Crowd sourcing failure.

Practical Magic

  • 5 O'Clock Shadow
  • *
  • Posts: 88
Re: Good Cities To Buy Rentals In?
« Reply #18 on: May 17, 2015, 07:40:12 PM »
Bremerton, Washington. A navy town with a college.

iamlindoro

  • Handlebar Stache
  • *****
  • Posts: 1520
    • The Earth Awaits
Re: Good Cities To Buy Rentals In?
« Reply #19 on: May 17, 2015, 08:10:17 PM »
Bremerton, Washington. A navy town with a college.

Out of curiosity, what would make Bremerton a good rental city in your opinion?  The price to rent ratio (based on an unscientific quick-look at MLS + Craigslist and rentometer) suggests < 1% of purchase price in rents per month.  Since it doesn't seem like a strong cashflow market (again, correct me if I'm wrong here) I'm wondering if there's something I might be missing about it.

srob

  • Stubble
  • **
  • Posts: 118
  • Age: 44
Re: Good Cities To Buy Rentals In?
« Reply #20 on: May 18, 2015, 02:43:28 PM »
This is not an answer but a related question. I have noticed higher cap rates in rural places. Anyone have experience owning rentals in rural communities? Are they harder to fill? What other challenges do rural landlords face?

srob

  • Stubble
  • **
  • Posts: 118
  • Age: 44
Re: Good Cities To Buy Rentals In?
« Reply #21 on: May 18, 2015, 02:45:43 PM »
I'm curious waltworks, what did you do with your money from selling rentals, move it to the stock market?

Bobberth

  • Bristles
  • ***
  • Posts: 318
Re: Good Cities To Buy Rentals In?
« Reply #22 on: May 18, 2015, 03:30:34 PM »
I'm in St. Louis and unless you want the low level slum lord properties, pickings are slim and well bid when they do hit the market.  A long term flipper I know has recently gotten a job as he can't acquire any inventory as he is constantly outbid by newbies entering the market.  So like Walt said, even in the midwest, you're not going to find the deals on the open market, you're going to have to put some work into finding them yourself.  That is unless you want the low level stuff.

NoNonsenseLandlord

  • Bristles
  • ***
  • Posts: 396
  • Age: 61
  • Location: Eagan, MN
    • No Nonsense Landlord
Re: Good Cities To Buy Rentals In?
« Reply #23 on: May 18, 2015, 03:43:19 PM »
All cities have great deals - still.  It's harder to find them.  A REIT or partnership might be the way to go.  Often, you are a limited partner and can get 10%+ projected returns,