How to Pick a Location for Out of State Multi-Family Investing?

[Cassandra Cowen]

Hello BP Community,

My biggest obstacle is how to pick a market for multi-family investing. Our primary goal for investing is cash flow as well as appreciation over time. We have researched Florida, Texas, Alabama, etc. and feel like any could be good options- we just have to try one. I live in Southern California and am ready to jump in out of state.

How did you find your market? Any suggestions on hot locations? Thanks!

[James Wong]

I settled with Kansas City and neighboring cities. I first filtered areas of interest, growth and overall job development. I next looked at cities and states that were landlord friendly. One of the things that attracted me to Missouri was the eviction process for nonpayment. It's pretty straight forward and not that long of a judicial process. If you compare to the Kansas side, you will end up needing an attorney and it takes longer to get possession of property. I have property in California and it requires a lot of patience and time to evict someone for non-payment.