Physician / Investor · Bountiful, UT · Member since 2016 · 6 posts · 1 vote
I live and began investing last year in Utah. Getting competitive to find decent cash flow properties. I was told by someone that New Mexico has a good market for multi family. Anyone with experience for or against this?
Thanks
I am not an expert in any sense of the word, but I moved to albuquerque about 3 months ago and I've been all over the city looking for deals. Single family houses are too expensive for the amount of rent the could pull. Small multifamily could be profitable if bought for the right price. Most of them are listed to just above the 1% rule. If they exceed 1.5% you either found a good deal or it's in a very bad part of town. Now I've been seeing the numbers looking way more promising on commercial properties. All the local investors I talk to tell me I have to get the deals off market to make the numbers good. again I am no expert and this is all my personal opinion. Check out loopnet.com in albuquerque to see current commercial properties here.
Interested to see what the replies are like on this. I personally love visiting New Mexico, but I feel like it's an oft-ignored state that the vast majority of people know little or nothing about. I like that the landscape runs the gamut from snowy mountains and ski resorts to lush forests to dry desert mountains and scrub to actual desert lowlands and everything in between. Similarly as far as the population, it runs the gamut from extreme poverty to a playground for the rich and famous in places like Santa Fe and Taos. Seems like there are likely nice submarkets within NM (as there are everywhere) but I'd love to see some statistics.
Hi @Ryan Anderson@Max Householder - NM like anywhere has its challenges and also has some hidden gems. There are out of state investors marketing and doing deals in the state but there are still opportunities, on market and off-market for multifamily. I am a full time commercial broker and we have seen coastal money come into the state as investors chase yield, but returns here are not nearly as compressed as what you will find in larger cities and CBD's. In addition to being a broker I am also an investor and with the appropriate due diligence and marketing Albuquerque can be a great market.
I am not an expert in any sense of the word, but I moved to albuquerque about 3 months ago and I've been all over the city looking for deals. Single family houses are too expensive for the amount of rent the could pull. Small multifamily could be profitable if bought for the right price. Most of them are listed to just above the 1% rule. If they exceed 1.5% you either found a good deal or it's in a very bad part of town. Now I've been seeing the numbers looking way more promising on commercial properties. All the local investors I talk to tell me I have to get the deals off market to make the numbers good. again I am no expert and this is all my personal opinion. Check out loopnet.com in albuquerque to see current commercial properties here.
I lived in Albuquerque from 2006 - 2012, and have currently own 19 multi-family units in 3 buildings. There are a lot of multi-family buildings in certain areas of the city. Many of them have deferred maintenance, but if you have the money to do the required repairs you can find good cash flow. Good management is important as there are a lot of low income areas, with potential of good yield if managed properly.
My units have cost around $38k each after repair, and I can get $500-600/unit. So it has worked out OK.
I'm currently living in Farmington, NM. I bought a house when oil production slowed down. Hopefully the local economy comes back. Lots of workers left the state when oils production stopped. So now may be a time to buy some property in NM. I don't know the data or the numbers, you may have to look into that. I was in ABQ today and saw some good property locations.