Large Multifamily; Where to invest?

[Ruben VanDusen]

Hello REI community,

I have questions in the topic of large multifamily apartment complexes generally around the U.S. 

- What markets are good markets for investing/buying large multifamiliy apartment complexes?

- What driving factors should I take into account when l'm looking for an up n' coming hot markets? 

- Hot markets? 

- What systems/software do you recommend to use to determine the markets to invest/buy into?
     

Who do you know is willing to answer?

Thank you for reading this far;

-Ruben

[Jaycee Greene]

Hey Ruben. What is your definition of "large" in terms of number of units?

As for a market, I'd suggest first considering markets where you already travel to and/or have family/friends that live there. Just my opinion, but happy to answer any other questions.

[David Spurlock]

Hey @Ruben VanDusen,

I'll answer your questions in reverse as it makes more sense that way. 

- What systems/software do you recommend to use to determine the markets to invest/buy into?
I read newspapers (Digital) in the markets I am interested in. Business Journal (BizJournals) is the main one I read, but you can find others. bizjournals post about the new developments and changes in the city. There is also usually a map of the ongoing and finished developments. I use the Bureau of Statistics to find figures for job growth and population increase. Realtor.com has a lot of data on rent cost and housing prices. 

- What driving factors should I take into account when l'm looking for an up n' coming hot markets?
Factors you should be looking for are: Job growth, population growth, low unemployment rates, increasing demand for housing, housing price history, and rent cost history. Look into the various industries in your city. If you have a wider variety it will reduce the risk with your investment. Don't be fooled by seeing new developments in a city, instead look into what the development brings to the city. (E.g. the development of a park isn't going to cause an influx of jobs. The development of a new business may only be bringing 25 new jobs. You will need to analyze the developments and decide what you think will be best.)

- What markets are good markets for investing/buying large multifamiliy apartment complexes? Hot markets
I like Colum bus due to the amount of growth is it receiving, but I am biased since I live there. A lot of Realtors will say their market is best, however, if you speak to any massive investor (not just real estate) they will all mention Colum bus. If you are buying large multi-family, I would follow larger developments so your investment has a rock to support itself. You'll need to decide what a good development is based on your definition of "large multi-family". A lot of data centers, including Cologix who recently made an announcement are being developed there. Honda, Facebook, and Amazon are a few others who have individually invested several billion into the area. 

I'm not sure what you mean by "Who do you know is willing to answer?" but I'd be happy to chat more if you have specific questions.