Looking to build a small multifamily in the southeast

[Francisco Ruiz]

We are just starting to research and plan for a move out to the southeast somewhere, still in early planning phase. We are from the N. TX area and have a few STR's in OK, TN, GA and VA. One of those is a duplex. We are considering building a small multifamily a couple duplexs, a tri or quad in a small suburb of a larger city (ie Nashville, Knoxville, Atlanta, Ashville). Wanted to get some thoughts from more seasoned small multifamily investors on a few items or any other suggestions:

- Any specific pros/cons of any particular states in SE (TN, AL, GA, NC, SC) to consider?

- What are the key items to consider from a code/zoning stanpoint when researching various towns

- Any unique items to consider about financing a small multifamily?  Are there specific lenders which are easier to work with for small multi projects?

- Good source to find reputable and experienced small multifamily builders once we firm up a specific market?

[Robert Rixer]

I'm a believer that there are deals to be had in any market. No matter where you settle upon, your idea to build really comes down to your goals. If you're goal is a long term hold, you're almost certainly going to do well even with a market rate deal in any of those states. But if your goal is to cashflow positive from the Day 1, you may find it very challenging due to current day interest rates, high cost of construction and the fact you won't have the efficiencies of a seasoned developer building at scale.