Author Topic: What are the best cities for investing in rental properties?  (Read 1147 times)

JumboShrimp

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What are the best cities for investing in rental properties?
« on: March 01, 2018, 08:24:55 PM »
WA state resident here, thinking of widening my search net. Been looking for the last 6 months trying to find something in state and am not finding anything with numbers I like.
Properties rarely meet the 1% rule and if they do they generally need so much work they won't pan out. The margins seem so tight I can't figure out why anybody would be buying.

What cities are people finding cash flowing rentals to buy and what do the numbers look like?

HawkeyeNFO

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Re: What are the best cities for investing in rental properties?
« Reply #1 on: March 05, 2018, 07:53:53 AM »
If you're just searching in your area, then it sounds like you have discovered that it's not favorable for landlords.  Same thing I have discovered in most of the DC area, where it's not a great area for a landlord to make money.  Now if you look at areas where real estate doesn't cost so much, like most of flyover country, then conditions are far more favorable for landlords to profit.  Take a look at Memphis, Kansas City, Detroit. 

LiveLean

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Re: What are the best cities for investing in rental properties?
« Reply #2 on: March 05, 2018, 02:55:12 PM »
Either the city in which you live or other cities where you know the market equally well --- likely cities where you've lived previously.

enigmawrap

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Re: What are the best cities for investing in rental properties?
« Reply #3 on: March 05, 2018, 09:55:08 PM »
Jumbo:  I understand you want to find that deal "that works."  would this be your first purchase?  It's very anxious to keep track of that first rental.  It might work out better if you expand your search to properties within 1 hour drive of your residence.  How about contacts with investor "friendly" real estate brokers (esp. true blue property managers)?  Once you make contact with them, let them know what you are looking for....they WILL keep an eye open for you.  A lot of real estate is sold without ever being placed "officially" for sale.  It would really help if you could get that first property nearby before going to the next nearest city.  If there really are no options in that 1 hour drive (in any direction), than I guess expanding beyond that would help.  Point of caution:  Make sure you really get to know at least two property managers in that new city that you feel you can trust (they are honest/blunt with you about the market, about a particular property, etc.).  And, find out about the job market in that city, where ever it is - no jobs, no good paying tenants.  Let us  know how the search goes...