Cities for multi-family

[Calvin Cheong]

Narrowed down to multi-family. Looking at Dallas, Austin, Atlanta, Nashville, Memphis, Charleston. Be interested in hearing from folks with direct experience in those markets. Would love some suggested zip codes to run some research. Hold period 5-7 years. Thanks!

[Levi Bennett]

Quote from @Marc S.:

@Garrett Crosby I've been looking at Charlotte MFs. Are you finding that you are still getting good purchase prices? I've yet to get my 1st property. I have made contact with an agent there and haven't gotten many good deals. The asking prices don't even come close to the 1% rule.

MF is not normal here, it's nothing like up north. I think a lot of investors from more dense cities assume Charlotte has a higher density but it really doesn't. Typically, MFs here trade between 3.5% - 6% cap. To compound frustrations, already very low inventory is exacerbated by people all over the country that see Charlotte on the internet as a good place to invest and think they can apply what they know about MF to Charlotte.. it doesn't work, yet (literally) 10s of thousands of new investors look here every year for the same couple of hundred MF properties. To give you more perspective, most of these owners get 1-5 offers PER DAY since 2017. You will not find a "good deal" in MF in Charlotte without enormous luck. If you want 1% rule in the Carolinas, invest in short term rentals.