US Investors are buying more of US Housing market than ever before

I do recall saying that the ship has sailed, weird that, I wonder why I said it...
.... because it just keeps roaring

There are I think 50 States so not all markets are equal. but interesting when you think what can be achieved in terms of cash flow. Growth is just an added bonus. Mind you we know when there is demand prices will continue to rise as there is not enough stock.

Here is a recent article, seems the lower end is doing very well

Want a House Like This? Prepare for a Bidding War With Investors

Investors Are Buying More of the U.S. Housing Market Than Ever Before

 

The beauty of buying at a market bottom with gross yields over 7%

AUD decline also a lovely kicker

 

^^^^ this.

I know to many it seems daunting to tackle the US. And when I started less than a year ago, it WAS!

But after nearly 12 years in the AU investment property game, I has the wisdom, experience, and well, balls, to take a (educated, informed, researched, and fully understood) risk. And, well, it is paying off for me big time.

As an avid FIREbug myself (who optimises my financial life right down to every grocery store decision I make), I know my journey to financial independence has been seriously ramped up more in the last 10 months that in at least the totality of the 5 years previous to that; thanks to my foray into US markets.

As I have said many times on here, I am still long-term bullish on AU markets, but right now in 2019, I KNOW my investment $$$ available, can work much much harder in other markets, and with really not much change to my risk-profile-level than I have established for my AU efforts.

If you are comfortable with out of state investing in AU, then out of country investing (specifically the US, can't comment on other countries), is really not that big a leap. This is compounded by the fact we have a tax treaty between AU and US which, once you learn it a bit, makes your taxes process in both countries, really not that daunting.

 

Certainly interested in investing in the USA when comparing the markets there compared to AUS, in particular some of the yields available over there.

Could anyone recommend a good buyers agent in Sydney that has experience in this?

 

There's more than one listed company buying up resi houmes and small development as well in the US.

One is Frontyard with 15,000. Intersting numbers.

 

What have you actually bought over there?

 

Just to give an idea.... this is one of my properties in Atlanta, after 5 years tenant now moving on

After tenant vacated Irehabbed it in 1 week, I have my own maintenance guy.
I now have 11 applications on the table, I kid you not. Landlord market

4570 Flat Willow Pl, Douglasville, GA 30135 - Home for Rent - realtor.com®

 

As we are talking different markets in US

Bagley in Detroit very hot. Here’s one of my properties, as you can see trending north. I may very well be flipping this next year

Detroit is a tough market, so dont do it unless you are a toughie...

https://www.zillow.com/homedetails/18961-Cherrylawn-St-Detroit-MI-48221/88533418_zpid/

 

Mostly townhomes (townhouses in AU speak) and single family homes (houses in AU speak).

 

What states/cities have you targeted?

 

My Bagley, Detroit property:

https://www.zillow.com/homedetails/18957-Kentucky-St-Detroit-MI-48221/88471712_zpid/

I sold down 2 in Atlanta this year. They sold to a Chinese investor within an hour of advertising!

 

These are the 2 Atlanta properties I mentioned above that I've just sold. Bought for $65k & $80k. They're renting for $1050 & $1095. Just sold for $95k ,& $105 USD to an investor so no agent fees.

https://www.zillow.com/homedetails/1520-Labonte-Pkwy-Mcdonough-GA-30253/71365935_zpid/

https://www.zillow.com/homedetails/165-Prattling-Ct-Atlanta-GA-30349/69365358_zpid/

I got $30k USD growth each pretty quickly so bought number 3. So basically a free house in Atlanta in about 18 months.

Now pulling the funds out to ride another wave

 

Currently in Georgia, Alabama, Michigan.

@ellejay Congratulations! That is a phenomenal effort!

 

I hold a number of properties in Michigan and Florida. I would be interested in chatting with you regarding your experiences (property managers etc).

 

Interesting. I've heard Alabama has been doing well, Georgia is tight and difficult to get into and that Michigan is risky if you don't have a good connection on the ground.

How did you go about purchasing in Alabama and Michigan? Buyers agents or just did your research on American sites and jumped on Zillow?

 

Hey Don, I own in Florida as well. All research done the hard way - up close and personal. Each property has been hand picked. Learned a lot, met a lot of interesting people along the way!
Your comments on the Detroit market are spot on! You can't succeed there without support. It's not a market for the feint of heart. Time to sell up there I reckon and move on.

 

Courage + Research + Action =s potentially@ellejay results!

Many aspire to doing it. Very few are unique enough to go for it. Well done !

 

I use BA's (more called 'Facilitators' because their scope of work is bigger than the pure sourcing and purchase of the property) in every state.

Can't comment as yet re: the difficulty of Detroit since, my property is still undergoing rehab (renovation) and as such is not yet rented. But yes, it is very much a street-by-street city and there are 'gotchas' to be weary of.

Re: Georgia I would say finding good deals in Atlanta will be tough, but beyond that there are regional cities and areas in that state that still present value and good yields. In fact, on Bigger Pockets at the moment (which btw is the US version of Property Chat and is INCREDIBLE! Start reading there, first and foremost if you want to start researching on the US), Savannah Georgia is getting a good buzz. It is a coastal city with a big port and a small but growing economy + population.

Alabama is incredibly law and tax favourable to the investor. It seems that yields aren't as great in this state due to lower median incomes and a generally much smaller population and economy. BUT it is a very stable market and even though I say 'lower' yields, these still blow any AU cap-city yields out of the water. Plus, it is an affordable market. C and even B class neighborhoods can present decent houses in the AUD $70K-$90K range.

 

Thank for the feedback c-Mac. Good luck in Detroit!

 

How are you guys getting finance for US properties?