Top markets for long-term multi-family investing?

Question

What are some of the best markets for LTR multi-family with a decent rent to purchase price ratio?

Dock Newell Jr · Answer

When searching for markets with a good rent-to-purchase price ratio for long-term rental (LTR) multi-family properties, it's essential to consider several factors, including job growth, population trends, and affordability. I always suggest doing your search but here are some I've looked into that I feel have favorable rent-to-purchase price ratios:

Real estate market conditions can change, and new trends may emerge. It's crucial to conduct updated market research, analyze local economic factors, and assess the specific neighborhood and property before making an investment decision.

What market are you currently in?

Trevor Richardson · Answer

Reno has incredibly stable market conditions. The first city out of the most populated and expensive state. Tesla expanding the gigafactory to build the semi truck factory. Our topography restricts the market from being overbuilt and there is a very high quality of life with Tahoe and the Sierras. Quietly Reno is #20ish in SFR median home values at nearly $600k. Housing is a major problem here which makes our market super stable for long term multifamily investments.

Patrick Drury · Answer

@Corbin DunnBoth the Columbus and Cleveland markets are great for investing in from out of state since they are landlord-friendly, and have a low barrier of entry and cash flow.

Jimmy Lieu · Answer

Hi Corbin, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Robert Ellis · Answer

Hello Corbin,

You're asking a great question, and I'm excited to share some insights into Ohio's markets that offer excellent opportunities for long-term rental (LTR) multi-family properties with favorable rent-to-purchase price ratios. Here are a few Ohio cities worth considering:

• Columbus, Ohio: With its steady population growth and diverse job market, Columbus stands out as a prime location for LTR multi-family investments. The city's strong rental demand contributes to a favorable rent-to-purchase price ratio.
• Cincinnati, Ohio: Known for its stable economy and diverse industries, Cincinnati provides a robust environment for long-term rental investments. The rent-to-purchase price ratio for multi-family properties remains competitive.
• Cleveland, Ohio: As one of Ohio's major cities, Cleveland offers a mix of affordability and rental demand. This creates an attractive environment for investors looking for a favorable rent-to-purchase price ratio.
• Dayton, Ohio: With a lower cost of living compared to larger cities, Dayton presents an appealing opportunity for LTR multi-family investments. The city's affordability contributes to a competitive rent-to-purchase price ratio.
• Akron, Ohio: Known for its strong healthcare and manufacturing sectors, Akron provides a stable economic foundation for long-term rental properties. The city's rent-to-purchase price ratio remains favorable for multi-family investments.

Remember, while these cities show promise, each market comes with its own set of nuances. Thorough research and due diligence are crucial before making any investment decisions. If you'd like more detailed information on any of these markets or assistance in finding suitable properties, feel free to reach out.

Grant Schroeder · Answer

@Corbin Dunn Memphis, TN!

Sam McCormack · Answer

Midwest. More specifically, Cincinnati. As well as Columbus, let me know if I can help you find an agent in any area in the Midwest. If you want to look into Cincinnati/NKY, let me know and I can help as much as possible!

Robert Ellis · Answer

@Ali Nichols  Where are your holdings in ohio? I've never heard natural resources as a driver in any real estate investment forum and interested to hear more.

Ben Firstenberg · Answer

People ask me this sometimes, may I offer an alternate point of view?

The most important thing isn't WHICH market. There are lots of great "cash flow" markets out there and lots of great "appreciation" markets out there. It's not super difficult to find places to invest. The opposite, actually. Thanks to the BP community, Zillow and the internet, a person could reasonably invest in any city they want. It's TOO MANY options!

Furthermore, all of the market level information is pretty widely known. Experienced investors already know which markets are poised for growth and which markets are better suited for cash flow investments. I'm not trying to criticize you for not knowing, I'm just saying you will learn very quickly.

So, your competitive advantage isn't going to be in figuring out which market to invest in. Your competitive advantage (especially in the SFR and small MFR space) is going to be finding the right people. You need agents (or wholesalers), contractors, Property Managers and lenders that are good at what they do, and that you can trust. WHERE they are doesn't really matter.

My advice? Pick a few markets that interest you and start reaching out to people on this forum in those markets. Agents and wholesalers will be the easiest to contact. Talk to them, see if you work well together and have similar goals. Over time, you can put together a small team and get ready to do some deals.

Hope that helps, feel free to DM if I can answer any questions

Top markets for long-term multi-family investing?

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