Author Topic: Where do you landlord?  (Read 1507 times)

LadyStache

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Where do you landlord?
« on: April 22, 2018, 01:03:05 PM »
I'd like to generate more passive income, and I'm thinking about getting into real estate.

Since I already work a ton, I would want to have a property manager do most of the work. And since I live in a HCOL area, I need ideas on lower cost areas with strong rental markets.

I suspect there are at least a few of you who are doing something similar. What areas do you think will bring high returns for a relatively low investment?

Dicey

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Re: Where do you landlord?
« Reply #1 on: April 22, 2018, 10:23:00 PM »
I am not recommending this specifically, but I went to a Celebration of Life last weekend. I noticed a woman had a pile of loan papers on her table, so I asked her about them. (We're in escrow on our next project, so I knew exactly what they were.) She was in the process of buying another rental property in Flint, MI. I was kind of shocked, but her numbers looked surprisingly strong. The houses I saw photos of looked like solidly well built bread-and-butter type 3+2 rentals. She uses a property manager as well. This is not a recommendation, it's just an unexpected conversation that relates to your question.

We landlord in a Senior Community in the SoCal Desert. I'm happy with our rentals, but I wouldn't recommend the area particularly. We just happen to know the market there really, really well. However, it's been over two and a half years of solid research and we haven't found our next property there. So we finally found one five miles from our NorCal home. It needs a ton of work, so we won't even be looking in SoCal until this flip project is finished.

powskier

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Re: Where do you landlord?
« Reply #2 on: May 12, 2018, 12:32:57 AM »
Anchorage AK has cap rates between 6 and 10%. Seems like quite a few out of state investors are starting to pick up multi family units here.

( edited to correct ROI/cap rate)
« Last Edit: May 14, 2018, 11:14:57 PM by powskier »

MaikoTsumi

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Re: Where do you landlord?
« Reply #3 on: May 14, 2018, 09:04:40 AM »
Anchorage AK has ROIs between 6 and 10%. Seems like quite a few out of state investors are starting to pick up multi family units here.

That's not a particularly good ROI. You sure you're not mixing up cap rate with ROI?

powskier

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Re: Where do you landlord?
« Reply #4 on: May 14, 2018, 11:13:43 PM »
Anchorage AK has ROIs between 6 and 10%. Seems like quite a few out of state investors are starting to pick up multi family units here.

That's not a particularly good ROI. You sure you're not mixing up cap rate with ROI?
Ugggh, lol. Yes I am. Long days. Thanks for catching that, I'll edit it.

gimmickless

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Re: Where do you landlord?
« Reply #5 on: May 15, 2018, 09:10:04 PM »
I own a house in Aurora, CO and am working on renting out the two spare bedrooms.  Does that count?