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What city is the best for buying real estate (houses) and than renting it?

Discussion in 'North America Real Estate' started by kensha, Sep 24, 2009.

  1. kensha

    kensha New Member

    I am looking to buy houses for investment in the us.
    What city is the best for buying real estate (houses) and than renting it?
    I am looking for:
    Good cap rate (more then 10%).
    Easy renting (low rental vacancy)
    Good potential for prices to raise.
    Thanks
    chen
     
  2. KofiLGS

    KofiLGS New Member

    I would invest in California. There are attractive communities in Northern and Southern California where the rental market is strong. A lot of home owners are walking away from their homes and renting, or doing lease buy backs. Where are you interested in investing?
     
  3. PatF

    PatF New Member

    If you are looking to rent them out then the busier the city the better. The more packed a city is the better for renting. Rentals are usually in very high demand in cities where property is scarce. This is where you would want to invest to rent.
     
  4. paytown50

    paytown50 New Member

    When you ask a question like that your going to get answers like "my place my place is the best"

    The bottom line is study the economy of the state and cities your considering investing in. To be honest and this is not to attack any of the Cali Investors (I used to be one of you) :)

    I would not touch California with a ten foot pole. The state economy is on the verge of Bankruptcy and the real estate market is still devastated. The only deal that I would consider there is a flip deal and only if I was able to buy it for 25cents on the dollar.

    There are other areas I would suggest that have stronger state economies and are primed for growth in the coming years. I would rank them as follows

    1. Texas (This is where I'm investing at the moment)

    2. Georgia

    3. Washington State

    If you want furthur clarification I can give you my insight into why I like these areas and the actual cities I like.
     
  5. Sugi

    Sugi New Member

    Investing in America

    Hi there,
    Would appreciate more of your insight into why you have chosen Texas, Georgia and Washington State to invest in.

    Sugi[


    QUOTE=paytown50;122096]When you ask a question like that your going to get answers like "my place my place is the best"

    The bottom line is study the economy of the state and cities your considering investing in. To be honest and this is not to attack any of the Cali Investors (I used to be one of you) :)

    I would not touch California with a ten foot pole. The state economy is on the verge of Bankruptcy and the real estate market is still devastated. The only deal that I would consider there is a flip deal and only if I was able to buy it for 25cents on the dollar.

    There are other areas I would suggest that have stronger state economies and are primed for growth in the coming years. I would rank them as follows

    1. Texas (This is where I'm investing at the moment)

    2. Georgia

    3. Washington State

    If you want furthur clarification I can give you my insight into why I like these areas and the actual cities I like.[/QUOTE]
     
  6. paytown50

    paytown50 New Member

    Sugi,

    Sure not a problem. For now though I will highlight one as talking about all three will be too long of a post.

    Texas

    To me when choosing where to invest. You have to look at more than the house is worth this today and will be worth this tomorrow based on some magical appreciation formula which usually involves ..... the thought process "it cant go any lower" or "its fallen by over 70% it has no where to go but up"

    To me I look at more indepth factors. I'll cover three here for this post

    1. Population demographics are of the utmost importance when looking at real estate investing for obvious reasons. I wouldnt want to purhcase real estate in an area where no one wants to live. Or an area that people are moving out of.

    On the flip side if mass amounts of people are moving to an area it becomes more desirable. That is the case with Texas. I myself moved from California to Texas.

    2. The Economy

    Each state has a way of doing things that differs from the other 49. In the case of Texas. I feel that they are doing things right. There is a balanced budget here and a surplus. (though to be fair both are on the line for the 2011 budget) However there are purposed cuts across the line for all governement agencies here to try and keep the budget balanced. That kind of common sense is hard to find in other states. California has taken hundreds of millions of dollars from the fed government and still finds themselves on the verge of bankruptcy.

    You may say what does this have to do with my house that i'm trying to rent out?

    The answer is alot! This is the highest and first domino that starts the chain reaction that results in your local real estate market.

    For instance the way a state handles issues will dictate the attractivness it puts off in attracting buisness to come and set up shop there. So if that buisness comes to a state that means jobs for the area and jobs for the area mean your tenants can pay there rents on time (which we can all agree we all like)

    I know its a simplified example but it makes the point.

    3. The buisness tax situation.

    In texas there is what is called a franchise tax similiar to the b and O taxes that can be seen in states like California or New York. The key difference here is there is a base income floor level that is used here. If the buisness nets 249,999 or less then it pays no buinsess state tax!!!

    That is amazing and coupled with the fact there is no state tax. Is another major reason that investors flock here in droves.



    Brian Payton
     
    Last edited by a moderator: Mar 5, 2012
  7. kiwimoa

    kiwimoa New Member

    what sort of cash are you looking at paying for a good rental property in a good area etc, in Texas?
     
  8. Sugi

    Sugi New Member

    Hi, Open at the moment. Perhaps 50-60k.
     
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