Posted by Doug Pretorius on January 16, 2004 at 07:58:55:
This completely depends on what kind of investing you want to do. If you want to flip junkers then you need a city with a large older run-down section (this does not describe my market, which is why I’m not in the junker business.)
By the same token if you want to be a landlord a high-priced high-appreciation market is going to lead you to a lot of negative cashflow. (This does describe my market, which is why I’m not a landlord.)
If you want to take over payments with little or nothing out of pocket you need a slow-selling low-appreciation market (once again, this does NOT describe my market, which is why I don’t do sub2.)
As you can see, the kind of investing you do, depends heavily on the conditions in your marketplace. But believe me, there’s more than enough opportunity right there in Seattle, you don’t need to move. You just need to figure out what will work and what you’ll need–possibly investment partners–which in my experience are much easier to find (in my market) than creative deals.
Oh, right, I didn’t tell you what I AM (i.e. not flipper/rehabber, not landlord, not terms buyer). What works in my market for me is to buy nice houses conventionally with a partner and wrap them for a higher price and higher interest. This is very easy to do and very profitable.