Out-of-state Multifamily Investment in Phoenix, AZ or Denver,CO?

[Ali Mirabzadeh]

Hi,

I'm fairly new to BP and at the very beginning of my Out-of-State investment journey based in the Bay Area California. I have been considering Phoenix, AZ and Denver,CO as my options so far. I have compared population growth, rent growth, average income, and vacancy rate and they seem similar to each other on a high level. Denver seems to be more expensive and have higher median rents.

I know a good Cash-flow market is hard to go after right now and I'm going for the long game so would like to get appreciation and a positive cash-flow. I would like to get your opinion on what other factors I should consider to narrow down my search and pick a location out of those two(or any new locations you'd recommend to look after)

Thanks in advance.

Ali

[Taylor L.]

I like Phoenix for larger multis. We're doing apartment deals there because overall it has strong fundamentals and a lot of in-migration. Denver is going to have more snow to deal with, so be ready for that maintenance.

The downside is that they're both highly competitive for investors. Be sure to consider landlord friendliness, job growth, and new housing starts in your numbers.