Multi-family potential in Tallahassee Florida

[Ramsey Blankenship]

Here are the macroeconomics for Tallahassee:

Population Growth since 2000: 20%

Median HH Income increase since 2000: 30%

Median HH Value Increase since 2000: 50%

Crime: Just below the national average and slowly trending downward (484 of 1000)

Job growth (12 months): 3.2%  (highest in the Panhandle of Florida)

All in all, Tallahassee appears to be a healthy, prosperous, city.

Are there any local experts who would like to share the ground truth.  My partner and I are looking to purchase stable multi-family units with short term rental potential (walkability).  Class b and C only. 

Interested to hear your thoughts.

Ramsey

[Mike Conner]

I don't invest in large multifamily but from my perspective from living here for 18 years and working in construction is the market is beyond flooded. I receive weekly requests to bid on projects for new apartments that range from 10 - 170 million. These are weekly bids. There are so many apartments here that are 10+ years old and I see them constantly changing ownership or switching from trying to rent to students to being low-income or some other type of government program. They are constantly offering highly discounted rates to get people to rent. This may be a normal multifamily marketing tactic but to me it appears more like desperation. The population of the major universities hasn't changed much but the available apartments has increased exponentially. Maybe there is possibility of making money on B and C class apartments but I personally wouldn't consider it due to the abundance of doors, and amount of current apartments under construction.

After working on and discussing the numbers with some of the owners of assisted living facilities, I believe that is the most profitable avenue though not easy to get into. A lot more regulations, high turn over, but incredibly profitable.