Wheres The Next Hot Spot For Buying Cheap Homes That Will Go Up ?
i now live in vegas , houseing market sucks here , way over priced market , i moved here for my gf and the weather , i was buying and fix & flipin in mn , i also did some work in denver , .... i have heard about salt lake and texas doing well .....anyone else have a hot spot ??? i can tell you being from the twin cities minnesota that if you can put up with the winters ,the economy is very strong there and will continue to grow . denver co. isnt all that great and thats why i,m looking elsewhere .... thanks all in advance
[ Edited by corvetteguys on Date 02/14/2006 ]
Texas is cheap because the property taxes are ludicrous.
Amen
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We are buying houses in Mobile Al. Our market here has been stagnet for 5 or so years. Now that the hurricanes caused so much devistation along the coast we are having a housing shortage. My company sold 2 houses yesterday to people from pascagola Ms. Now that the insurance checks are flowing people are flocking here.
great posts/replys , i was shocked to see what 150k would buy in houston tx , i guess ive been looking at too many over priced lv homes ,,,, 120 k buys a 1br condo in a bad neighborhood here .....in houston i saw brick mansions with 4 br going for 145 k .....i,m ready to move from here and start rehabing , i bought a couple in denver this fall , but they arent selling , so i,m looking for a market where at least my work will resell , i will look into austin tx ........i did a post on craigslist on the job forum and asked how they thought the job market was , the reply i got was ( not good due to the refugees ) ......thanks all and i will post anything i find out as my search contiues !
thank you , yes i saw a 3 br 2 bath condo in houston for like 48 k ....but then the taxes were 1600 for the year .....i cant imagine what the taxes would be on a 200k home there , wow . my taxes on my denver prop. are like 300 something for the same value , i know you can get the taxes lowered but i have never done it , thanks for all the info .
man i am glad i saw this post before i headed to tx , i was going to take a trip there and look around and do some research , but i have not heard good things from others that live there and now your post has helped me decide , thanks for your help .
Two things you guys are missing about Texas:
1- Taxes are sky high, yes. But rentals compensate for that -- otherwise there would be no rentals. You can buy a nice 3yr old starter needing no repairs at $110-135k and it will still cash flow!
2- With good investor shopping techniques, you can buy this type of home for 20% below FMV. Those type discounts are non-existant in newer homes in hot markets. Everything is snapped up at full price by the speculators depending on appreciation.
To equal a 20% discount, a property would have to appreciate by 25%. (do the math on this if you are confused)
On this house, would you rather have a $25k profit the day you buy, or HOPE that appreciation will make you that $25k a couple of years down the road.?
This is the logic that escapes most. Yes, some of us are making dang good money in Texas and have no desire to chase appreciation anywhere else.
Hey Don....
Maybe when someone does move, rather than complain about where they live, Vegas wont be second dumbest “STATE” to live in anymore....
I feel bad for the city of Texas….
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Shawn,
There is never a guarantee you will make money in real estate. Even though the big money is already in this area, there is money for the small investor. The best strategy is to buy a fixer upper, put some sweat equity in, rent for the long haul and watch your equity grow. The transformation will not happen overnight. I would look at this for a 5 -8 year timeframe. Thats been my style and it has served me well. Rents are strong in this market due to the overall shortage of housing.
Southern California is cheap compared to Hawaii. Los Angeles to San Diego is great and good weather.