New investor seeking purchase criteria

[Ryan Daulton]

I am a new real estate investor looking to buy my first multi-family home as a long-term rental.  I live in a town of 128k only, in Abilene, TX.  Abilene is a college town with 3 private colleges (plus community colleges).  There is one major medical center in town.  Because I do not want to operate this as a short-term rental, I'm not sure how many college students would be interested.  Also, out of town patients would not be interested in a long-term rental.  Is there a metric that records what percentage of rentals are occupied on average on any given day?

What are some of the key metrics to look for in a multi-family?  For example, which of the below metrics is most important if I'm wanting this property to cash flow?  Income to Price, Median Income, Median Rent, RTP, Annual Rent to Income, and Unemployment?  

I'm trying to determine if Abilene is a good area for me to purchase.  Median income: $57k, Median Price: $134k, Median rent: $949, RTP: 0.71%, annual rent to income: 19.85%, population growth: 0.83%, unemployment: 3.90%

[Arn Cenedella]

@Ryan Daulton

Abilene is probably not the most dynamic market you could find. 😀

That being said let me make a contrarian statement:

The best market to invest in is the one YOU know BEST. Good investments can be made in any market provided one has excellent local market knowledge. 

So if you are talking about buying a 6 to 20 unit building I would stick to Abilene. Dive deep in that market, go see every MF for sale In that market, go visit act as a tenant all the buildings in your market. Talk to brokers local investors and property managers. Become a private investigator in your market. Thats how you learn it and get the questions you have answered. its pounding the pavement talking to people being out in the market. 

If you pick a martlet a three hour plane ride away it will be hard for you to learn that market well enough to make a decision. 

Hope this helps. 

Arn