Maverick Markets

About Maverick's Markets

Maverick MarketsThese U.S. real estate markets below are uniquely advantageous to real estate investors right now.  You can scroll down and click on the market you are interested in below to see market highligts and view available inventory. You can also click through to view a recorded webinar that discusses the market in more detail and provides an overview of relevant economic indicators, price-to-rent ratios, and other factors.

Click to Select a Market:

One of the Top 10 Largest MSAs in the U.S., Atlanta home prices in are still blazing upwards (FHFA.gov), and so is Per Capita Personal Income! (Source: USBEA). The Atlanta MSA has been creating over 50,000 new jobs per year. and the population has been steadily increasing as well (Source: Metro Atlanta Chamber of Commerce).  This is your opporutnity to buy nice homes in majority-owner-occupied suburbs, right in the path of growth.  

Atlanta Properties:

  • Fully renovated single family homes
  • Tenants and local property management in place
  • 7% Average Cap Rate
  • Hand-selected locations

Atlanta Market:

  • #1 rental market in the United States (Source: Forbes)
  • Top 5 U.S. cities to invest in (by CNNMoney.com)
  • Top 5 cities with the most Fortune 500 companies
  • 9th largest metro area in the United States w/ population of 5.3 Million
  • Home to the busiest airport in the United States: Jackson-Hartsfield International

Baltimore was our most popular market of 2017 -- and it is still smoking hot.  It is one of the only healthy real estate markets that can produce a 10%+ cap rate on a quality 100K+ single family rental property in today's market.  Baltimore rents have been increasing year over year (Realtor.com) and, while home prices are rising as well, they are still below the pre-recession peak (FHFA.com) which means you can still buy low and rent high to maximize your cash flow margin.  And over 50% of residents in the city of Baltimore rent (compared to 36% national average) so, as unemployment remains below the national average, this produces high rental demand and a substantial pool of qualified tenants.  

Baltimore Properties:

  • Discounted price to cash buyers for funding the acquisition and renovation
  • 180-day renovation period guaranteed by seller
  • Renovation cost guaranteed by seller in advance
  • Improved property guaranteed by seller to appraise for more than you paid (or seller will buy it back)
  • 12-month rental guarantee (starting after 180-day renovation period) by preferred property manager
  • 6-month scope-of-work warranty from seller

Baltimore Market:

  • Home prices are still well below the pre-recession peak (FHFA.com) which means optimal price to rent ratios.
  • Unemployment rate below the national average (BLS.gov)
  • Job creation is attracting quality tenants as Baltimore was named one of the "Top 5 Best U.S. Cities to Find Work" (Careerist.com).
  • Median household income in Baltimore MSA is 30% higher than national average (Census.gov)

As the third largest MSA in the U.S. with over 9.5 million residents (Source: U.S. Census), Chicago is a marquee market and an international destination city that attracts over 50 million tourists a year! (Source: NBC.com).  Chicago generates a Gross Regional Product (GRP) of over $575 Billion--an economic output that is more than some entire countries like Belgium and Poland.   It is home to 31 Fortune 500 Companies and Chicago was ranked as the #1 most diversified economy in the U.S. with no more than 14% of the workforce in any one industry (Source: Moody's).  What makes Chicago especially unique compared to other large MSAs right now is that, while home prices have been rising year over year since 2012, Chicago home prices are STILL below their pre-recession peak (Source: FHFA.com), so you have an opportunity to buy at an earlier stage of the recovery cycle and lock in historically unique price to rent ratios. 

Chicago Properties

  • Fully renovated single family homes & 2-4 unit properties
  • Tenants and Local Property Management in Place
  • $125,000 Average Purchase Price
  • 8% Average Cap Rate
  • You are Welcome to Purchase with a Mortgage

Chicago Market:

  • #1 Most diversified economy in the U.S.
  • Over 50 Million tourist visitors per year
  • Home prices have been rising since 2012, but still remain below their pre-recession peak = buy low and rent high.
  • Home to 31 Fortune 500 Companies

With nearly 2 million residents and over 14% population growth since 2,000 (Source: US Census), Indianapolis has proved itself as one of the most stable and reliable cash flow markets in the country.  With one of the smallest price dips during the last recession (Source: FHFA.gov), Indy consistently maintaines below average unemployment (Source: BLS.gov), and job growth continues with Kroger's $465 million investment in Indy which involved 33 stores and the creation of 3,440 new jobs in 2017 (Source: IndyStar.com).  With a cost of living well below the national average (Forbes.com), and being the home base of many large employers like Eli Lilly and State Farm, Indianapolis continues to attract an increasing pool of qualified tenants and homebuyers. 

Indianapolis Properties:

  • Fully-Renovated Single Family Homes in Owner-Occupied Communities
  • Tenants and Local Property Management in Place
  • 8% Average Cap Rate
  • Hand-Selected Micro Markets

Indianapolis Market:

  • One of the most stable real estate markets in the country that declined less than 7% during recession (FHFA.gov).
  • Consistently below average unemployment (Source: BLS.gov).
  • Job growth - Kroger's $465 million investment continued with 33 stores and 3,440 new jobs in 2017 (Sources: IndyStar.com).
  • College town - universities create consistent rental demand.

A number of unique market forces are coalescing to make Kansas City uniquely favorable for real estate investors right now. Kansas City is being developed as a strategic rail-hub to serve all points in the U.S. and BNSF Railway Company is the anchor of a $1.45 Billion project that is already underway converting 1,500 acres of farmland into warehouse and distribution facility.  Warren Buffet’s company Berkshire Hathaway has invested $44 Billion into intermodal freight transport operations run by BNSF, because it is increasingly faster and cheaper for companies to move freight by rail rather than trucks.  On top of that, the Cerner Corporation has already begun construction on a $4.5 Billion campus that will be 290 acres and is expected to create 16,000 new jobs in. (Source: 435mag.com).  While home prices are on the rise, Kansas City has also maintained an unemployment rate below the national average (Source: BLS.gov) producing high rental demand from tenants with stable jobs. 

Kansas City Properties:

  • Fully-Renovated Single Family Homes
  • Tenants and local property management in place
  • $85,000 Average Purchase Price
  • 8% average Cap Rates
  • Hand-selected micro-markets

Kansas City Market:

  • Multi-Billion Dollar Development Projects Around the City
  • Job Creation
  • Population Growth
  • Increasing Rental Demand

With the 4th largest GDP of any city in the U.S. and the 9th largest GDP of any city in the WORLD, Philadelphia is a powerhouse market for real estate investors. Philly has over 92 colleges and Universities, gets over 4 Million Tourist Visitors a Year, and is one of the nation's premiere sports towns--home to the Super Bowl Champion Philadelphia Eagles!  Philly is also home to 12 Fortune 500 Companies and the city continues to grow as a $225 Million Project was announced for a planned Waterfront Park expected to spur $1.6 Billion in private economic activity & lead to 2,400 new permanent jobs by 2022! (Source: Philly.com).   Over the past year, Philadelphia home prices have been increasing at nearly twice the rate of the other 10 largest U.S. cities and continue to trend upward.  This is a market on the move and now is your opportunity to buy in the path of growth.   

Philadelphia Properties:

  • Discounted price for funding the acquisition and renovation yourself
  • 180-day renovation period guaranteed by Seller
  • Renovation cost guaranteed by Seller in advance
  • Improved property guaranteed by seller to appraise for more than you paid (or seller will buy it back)
  • 12-month rental guarantee (starting after 180-day renovation period) by preferred property manager
  • 6-month Scope of Work warranty by seller

Philadelphia Market:

  • Job growth above national average
  • Home prices have increased 10% in the past year
  • Mass-Tourism: Over 4 million visitors annually (one of the U.S.'s top attractions)
  • Mega-College Town: Home to 92 colleges and universities, creating consistent rental demand
  • New $225 Million Waterfront Park Project expected to spur $1.6 Billion in private economic activity and create 2,400 jobs by 2022.

Among the Top 20 Largest MSAs in the U.S., St. Louis is ranked the #1 Lowest Cost of Living (ACCRA COL Index 2017) AND the #1 Most Affordable Homes (Source: AHBA). With a GDP of over $150 Billion and Home to 17 Fortune 1,000 Companies, St. Louis maintains an unemployment rate well below the national average (Source: BLS.gov).  It was ranked the "Top 10 Most Competitive Large MSAs to do Business" (Source: KPMG) and the "Top 10 Large American Cities of the Future" (Source: Foreign Direct Invest Magazine). The St. Louis properties are strategically located in majority-owner occupied areas and have higher-end finishes that make them stand out from normal rental properties, and position you with a premium exit strategy to sell to an owner occupant on the retail market down the road.

St. Louis Properties:

  • Fully-Renovated Single Family Homes
  • Tenants and Property Management in Place as Condition of Closing
  • Suburban communities with majority owner-occupants
  • $125,000 Average Purchase Price

St. Louis Market:

  • Lower Than Average Unemployment
  • Home to 17 Fortune 1000 Companies.
  • Over $1 Billion in Venture Capital Invested in Tech Firms Since 2014
  • Top 10 Most Competitive Locations to Do Business Among Large MSAs

Two Buying Models to Choose From:

All buying opportunties are for residential rental properties (single family homes or 2-4 unit properites), and you always own the deeded, freehold real estate (never any pooling of money or real estate backed securities), but there are two different buying models:

  1. Classic Turnkey: The property is completely renovated with tenants and local property management in place as condition of closing.

    Advantages: You just conduct your due diligence on a perfomring property and then cash flow from the day you close. This helps mitigate the risks associated with renovation delays, holding costs, initial vacancy period, etc. You can also purchase with a mortgage and put less money out of pocket for the acquistiion if you qualify for financing and choose to use leverage.

    Available In: St. Louis, Chicago, Kansas City, Indianapolis, Atlanta

  2. BRRRR (Buy, Renovate, Rent, Refi & Repeat): You pay ALL CASH to close on the distressed property, and then pay ALL CASH in draws to have it renovated, rented out to a tenant, and then finally you have the option of doing a cash-out refiannce based on the After-Repair-Value (ARV) if you qualify for financing.

    Advantages:  You get a discount since you are financing the acquisition and renovation yourself instead of the seller having to borrow and pay interest on private money.  You also have the potential to force apprecition durng the renovation process and then do a cash-out-refinance based on the new Appraised Value of the improved property (instead of based on the Purchase Price).  Many of our clients have been able to pull out some or all of their cash invested when they refiannce, and then they just keep repeating the BRRRR process.  

    Available In:  Philadelphia, Baltimore

Click on your market of interest above to learn more....