First Multifamily Investment

[Jessica Martinez]

Hoping to buy a multifamily property in the $2m range in the next 6 months-year. I haven’t yet narrowed down on an area, but it will be one of these places:

Atlanta

Phoenix

Kansas City

Houston

Looking for a minimum 7% cap rate and 12-15% cash-on-cash returns. Any thoughts on which area may be most realistic to get such returns?

[Lee Ripma]

@Dan Krupa

Totally agree. You’ve got to take on major value add right now. I’m developing in LA-the ultimate rehab! My properties in KC are bought cheap and in poor shape. You want high returns you can’t just go buy a property that someone else fixed up. You’ll never get those returns. Solve the problems that no one else wants to solve and you’ll get returns that no one else gets. However, it’s work and risk to get high returns. Not for the faint or heart or the inexperienced. I really struggled on my first one (you remember) but I was determined to get through it.