Favorite Multifamily Markets

[Garrett Sanford]

Hey guys, I am not new to BiggerPockets, just new to the forums. I want to start becoming more active in the forums so I figured Id start with something Im sure everyone is asking right now.

What are some of your favorite multifamily markets to purchase in and why? Living in Orlando things are crazy overpriced right now that I cant seem to find anything that would cashflow, so looking to branch outside of my backyard. Iv heard talk of Cleveland, but not being too familiar with the area, it seems like there are dramatic differences from block to block.

On that note...anyone from Cleveland that has any "Golden Rules" to share? (Iv heard stay west of Cuyahoga River, but thats about it)

[James Wise]

Originally posted by @Garrett Sanford:

Hey guys, I am not new to BiggerPockets, just new to the forums. I want to start becoming more active in the forums so I figured Id start with something Im sure everyone is asking right now.

What are some of your favorite multifamily markets to purchase in and why? Living in Orlando things are crazy overpriced right now that I cant seem to find anything that would cashflow, so looking to branch outside of my backyard. Iv heard talk of Cleveland, but not being too familiar with the area, it seems like there are dramatic differences from block to block.

On that note...anyone from Cleveland that has any "Golden Rules" to share? (Iv heard stay west of Cuyahoga River, but thats about it)

 Welcome to the site Garrett. If you are looking in the city of Cleveland itself the western part of Cleveland is a much better place than the eastern part. However in the greater Cleveland area there are a ton of awesome investment opportunities in the eastern suburbs like Garfield Heights, South Euclid, Euclid, Bedford & Cleveland Heights.

For more information on the Cleveland area you'll want to check out The Ultimate Guide to Grading Cleveland Neighborhoods.

[Garrett Sanford]

@James Wise SUPER helpful thank you! 

[Ellie Perlman]

Hi Garrett,

Welcome to BP! I am active in Tampa and Orlando. Don't give up on your backyard yet. The job and population growth in Orlando is phenomenal, and if you keep looking and make the right connections - you will find a good deal. Living there is a huge plus too. It's a solid cash flow AND appreciation market, with significant demand derivers. 

No matter where you choose to go - wishing you best of luck!

Ellie

[Mike DeBuccio Jr.]

Hey @Garrett Sanford,

I completely agree with @Ellie Perlman! If you look at past and projected job/population growth statistics in Tampa/Orlando, they're astounding. Also many people seem to overlook Lakeland in-between Tampa and Orlando.. its another hot market to definitely keep in mind. But since you are located down here in SW Florida, I wouldn't give up your search for multifamily properties here just yet. 

http://www.tampabay.com/news/business/Tampa-Bay-ar...

Don't let the bad deals that you are seeing discourage you.. there are definitely multifamily deals out there. If you'd like to chat I'd like to pick your brain and hear more about your future investment strategy. 

Goodluck my man!

[Justin Stamper]

hey buddy. you left your shoes at my place last night! haha!

[Garrett Sanford]

@Justin Stamper sorry do I know you?......😂

[Bill Campbell]

Hi Garrett. If you are giving up in Orlando you need to join a local REI and talk to some successful investors. Orlando is HOT! You have the largest college in FL and the most tourists in the State also. Talk to the Chamber of Commerce and find out the development plans for the next decade and you will understand better why you are in a great area to make serious money. It is not an EASY market because EVERYBODY knows it's HOT but if you aren't afraid to learn your market and WORK you will be successful. There is definitely plenty of opportunity in Orlando. House hack, wholesale, BRRRR... all great strategies to start with. Best wishes for your success Garrett and hang in there.

[Zamir Kazi]

I agree with everyone above. Orlando is a great market along with the Tampa sub market. Just like any other market in the country right now, everywhere is "hot" and hard to find GOOD deals, but with all that being said there are still deals out there you just have to work a little harder to get them. I've done over 400 units in the Orlando market big and small and it's still my bread and butter.

[Garrett Sanford]

@Zamir Kazi Id love to hear some of your experiences, especially with syndication

[David Thompson]

Hi Garrett,

I'd still stay in the big cities and southern belt.  I know its tempting to chase higher yields in the secondary and tertiary markets but we like the job growth, industry breadth and especially cities w/unique logistics / supply chain epicenters like Dallas and Atlanta.

My top markets would be:

1) DFW and Atlanta - uniquely positioned for the Amazonization of the supply chain across industries.

2) San Antonio  - highest population growth rate in the U.S. for size MSA last year.  Often overlooked to more hot plays like Dalla and Austin.  Growing tech and bio tech.  #1 for college grads.

https://therivardreport.com/census-data-san-antoni...

3) Houston - emerging; tail winds of reconstruction spending / oil firming up.  

4) Albuquerque - defensive.  No apartment more than 50 units was delinquent in their mortgage during the last downturn.  

5) Phoenix - my home town, much more diverse, don't be fooled by what happened in 2009, that was not Phoenix but a result of dumb lending practices fueling speculation.  Sun Belt state continue to attract jobs and retirees.

For my take on why the trend to big city investing not only trumps smaller city investing and will continue to accelerate check out this blog.

https://www.biggerpockets.com/blogs/9145/66626-why...

[Garrett Sanford]

@David Thompson thank you for your great input, what a out the Ft. Worth area? Iv heard good things

[Garrett Sanford]

@David Thompson nevermind you literally just said DFW 😂

[Jens Nielsen]

Hi Garrett,

I'm quite active in the Albuquerque market, where we own about 60 units. Let me know if you want more info about that market?

Jens

[Garrett Sanford]

@Jens Nielsen Absolutely, send me a message with the rundown!

[Grant Rothenburger]

No golden rules, just wanted to say welcome to the forums! @Garrett Sanford

[Garrett Sanford]

thanks @Grant Rothenburger!