Multifamily Investing - Pro/Con Worksheet of USA Market

[Matthew W Harrell]

Hi Everyone,

Investor here looking to divest out of one (in-state) market and into another (out-of-state) market. I'm looking to place about $5MM into a market with 50% LTV (~$10MM purchase). I'll be in a 1031x and will need to have this work done in advance of entering the 1031x as so I don't lose the valuable time analyzing markets... I'd rather do it now and have this out of the way.

At this point I want to see if someone has done a Pro/Con worksheet for the USA market. Something like the below should include things like, current CAP rates, CAP rate forecast, landlord-tenant law favorability (degree of), income tax rate, sales tax rate, sale of property/excise tax rate, annual property tax rate, severe weather, soil types, insurance rates (or ability to insure), rental rates of a 1x1/2x2/3x2, population, population growth rate, rent growth, crime, schools, HH income, etc., etc., etc.

I do like income tax free states, but I understand there is a relationship between no income tax and higher property tax/sales tax...  So, a no-income tax free states aren't exactly the predominant focus.  My hope is that after this exercise, I'll be able to make an informed, comprehensive decision where to focus on more detailed property level analysis.  I don't want to be deal chasing the entire USA market.  :-)

Note that I do have access to a couple programs that offer statistical data.

Open to hearing everyone's comments/concerns.  

Thanks everyone, let's see where this takes us!

Matt