Best places to buy rental property in the US
I'm looking to buy a rental property and the local market is too hot right now. Where would you recommend I look and how to start looking at out of state rentals? How do I build a team there? I'm in Dallas Texas if it makes any difference. Thanks!
[{"id": "dqfjl54", "text": "Kansas City and Indianapolis are probably the two most popular markets lately in terms of value. I have invested in both and have done very well. They are becoming hot but there are still significant deals compared to other markets. ", "replies": [{"id": "dqv66w6", "text": "How do you do your due diligence when investing remotely? Where are you based out of if I may ask. TY\n", "replies": [{"id": "dr7ijrx", "text": "I hire a third party inspector to do a full evaluation with lots of photos ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dqfmvxh", "text": "i am interested in your search, if you find anything on a way to verify decent markets or ideas keep us posted. god speed to you!", "replies": [], "depth": 1}, {"id": "dqfxgjo", "text": "I know a few out of state people investing in Texas, it really depends on your capital, I come/finance options, etc. You won't find insane ROI in Dallas but you can definitely make money. There are a lot of places to invest out of state that may be better, but imo investing close is better.", "replies": [], "depth": 1}, {"id": "dqgmuzm", "text": "I am active in Philly and steering investors towards single family homes for rentals vs. multifamily. I may be biased, but very bullish on Philly's outlook.\n\nStarting to see a lot of single family portfolios (5-10 homes) hit pre-foreclosure as new apartment supply starts to squeeze these players who are not updating their product and keeping vacancy low. It's a good opportunity to get in at a discount and compete on rents.\n\nIn terms of building a team - I see a lot of new players from NY and DE coming into the market and spending time/money on wholesalers, project managers, owners reps, etc. It seems like a lot of effort for one or two properties. My suggestion to them has been to just be the money and find a sponsor/partner who will take the time to understand their investment objective and won't rush them into deals. I'm blown away at how deal hungry some people are...\n\nAs far as Dallas goes, what do you think of Frisco and Wade Park? I had an investor ask me to analyze a debt position, but I have no basis to understand it well and couldn't give a thumbs up.\n\n", "replies": [{"id": "dqh4cty", "text": "&gt;  steering investors towards single family homes\n\nI agree. Rental SFR's are definitely very interesting. The product type has definitely seen a tremendous amount of growth in the last 5 years, almost double the growth that multifamily has seen. It makes up only 35 percent of the 44 million rental households, but that number is only going to go up as more institutional money comes into the category. \n\nI also see less turnover, expenses (it's almost a NNN-ish situation with the tenant is paying for snow removal, landscaping, pest control, utilities, etc). Also, with millennials entering the age where they start to think of household formation, but are unable to buy a home (homeownership rates for Americans under the age of 35 are at a 40 year low), I think a rental SFR with a yard is a decent compromise, do you agree?", "replies": [{"id": "dqk6igq", "text": "Agreed.\n\nSFR provides the bones for a much needed and growing product type. I think there are interesting ways to play with how \"NNN\" the situation can be. You can basically play with how you bundle/unbundle a rental product to compete with the more static apartment/condo packages.", "replies": [], "depth": 3}], "depth": 2}, {"id": "dqhg3ok", "text": "Thanks, any parts of philly better than others for rentals. As for Frisco, it\u2019s growing crazy with a strong a stable future ahead. The prices have already gone up and barely anything is cash flowing here these days. I\u2019m not sure where wade park is but if you have any specific questions about frisco, let me know. ", "replies": [{"id": "dqk5wdv", "text": "Undervalued opportunities in Point Breeze and Kensington, but competing with single family for sales. University City and Temple area consistently strong for student housing.\n\nThere's an interesting product in new construction town home developments where individual investors take title on each lot, developer builds the block and rents/manage per bed.\n\nWade Park is along the $5B highway.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dqjh108", "text": "Check out near CBD St Paul, MN. Office tenants are moving out in droves and its turning into a thriving young community with multifamily growth.", "replies": [{"id": "dqjkkmn", "text": "&gt; CBD St Paul, MN\n\nCBD?", "replies": [{"id": "dqk6j1x", "text": "central business district", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dqv67cz", "text": "OP how are you doing your due diligence to invest remotely?", "replies": [], "depth": 1}]