Factor #1: The Eviction Process
Sometimes, you will have to evict a tenant who causes damage to your property or who has stopped paying. The tenant eviction process can vary from state to state. Some states, such as California, are very tenant-friendly, which means that it can take up to 9 or even 12 months to evict an unpaying tenant. In the meanwhile, you pay for expenses out of pocket. Other states, such as Texas and Florida, are very landlord-friendly and provide owners with a quick eviction process. Selecting a market that allows the eviction to be quick and at a minimal expense is very important when you are choosing a market to invest in.
Factor #2: Property Taxes
A landlord-friendly state is also one that has lower property tax rates. Every state charges annual taxes on property. When evaluating a market, it’s best to look at the tax trends over the last 5-7 years. The higher the property taxes, the more loss to your bottom line. You can find the tax rates at the counties assessors’ websites. Florida, for instance, has a very low property tax of less than 1%.
Factor #3: Rent Control
Rent control restricts when and how rental rates can be increased. Since I buy multifamily properties, renovate them and raise rents, investing in a rent-controlled market is a huge deal breaker for me. New York has recently applied aggressive rent control laws that have been driving investors away from this market. As an investor, this can place you into a very restricted position to maximize your profits or further invests in your properties. I avoid rent control markets like the plague.
Factor #4: Rent Price Growth
5. Kentucky
- Eviction Terms: Property owners can give an “Unconditional Quit Notice” when a tenant has a record of being late on the rent at least once during the prior 6-mo. period. Tenant is required to vacate within 14 days.
- Property Tax Rate: 0.63%
- Market Rent (2 BR): $699
4. Georgia
- Eviction Terms: Landlords must use a dispossessory process. An eviction noticed can be extended within one day of late payment, and typically the tenant must vacate with 7-14 days.
- Property Tax Rate: 0.91%
- Market Rent (2 BR): $788
3. Colorado
- Eviction Terms: Landlords can give a demand for compliance on any late payment. Tenants must comply within 72 hours, and if not, must evict within 48 hours thereafter.
- Property Tax Rate: 0.55%
- Market Rent (2 BR): $1,008
2. Indiana
- Eviction Terms: Landlords must provide tenants with “notice to quit” once a payment is late. The tenants then must pay or evict within 10 days. In extreme circumstances, a landlord can also evict immediately upon notification through an “Unconditional Quit Notice”.
- Property Tax Rate: 0.87%
- Market Rent (2 BR): $782
1. Texas
- Eviction Terms: In Texas, property rights are strongly protected. Landlords can provide notice to vacate, with or without cause, and tenants must comply within 3 days.
- Property Tax Rate: 1.83%
- Market Rent (2 BR): $829
About Ellie Perlman
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
