Shortly after the Kiplinger article was released, many real estate gurus in the areas mentioned forwarded it, declaring it great news for their city and further validating why you should invest there.
All good dashboard info, right? Actually many people contacted me to ask if we will be marketing investment property in these areas. My answer of course is, “It depends.” You see, the article says these are “comeback cities,” Not Greatest Investment cities; you want to get cash flow and every city can offer cash flow. You may want capital growth, and job growth is a priority for a location to provide for this highly anticipated capital growth.
Job growth is great news for these locations and for it to become an EBG market we want to have both cash flow and capital growth. We need to have many stars in alignment over a location. This is why we say, “It depends.” We have much more diligence to do for each location. A few things that jump out at us are places like Chattanooga, TN with a population of only 524,000.
My concern is, can the location sustain growth if an employer moves locations or has massive layoffs (such as what happened to Detroit when auto manufacturing moved out of the area).
I also notice areas like Las Vegas, which expects job growth of 2.9%. This is great job growth and, when factored into the current employment rate, it will bring that city’s unemployment down to 10.8%.That is a full 2% higher than the current national average. Our standards are to be at or below national average.
I think you see where I am going with this. There is much diligence to be done to ascertain a location as the best place to invest.
With the entire disclaimer mentioned, some of these locations have been on our radar and we continue to do due diligence to identify the best locations to invest capital growth. When they meet our standards we will find the quality wholesalers on location to provide us incredible turnkey properties. Give us a call today at 941-718-7761 to get the most up to the minute investment ideas!