Specialist · Dallas, TX · Member since 2010 · 511 posts · 252 votes
Hi,
I am looking for small size apartments and I can see Texas is very hot market. Which one other good city/state for MultiFamily/ Apartments investment.
[2] Like to get some experience before going for Big. SandBox.
[3] Less competition with Syndication or Institutional investors.
I think from management point, 50-60 unit is better as you can higher full time manager... but again thinking about 3 points and that forcing me to go for small.
I was watching a YouTube video and this real estate investor named Juan Pablo spoke on how to determine the best markets for rentals and he stated that an investor can find a deal in any market, just as long as the numbers work.
@Shanel Wiggins - this is very true Shanel. You can find deals in any market. I focus only on Class A markets though because there are some markets, no matter how good the deal seems, its not worth getting involved.
Generally, yes. But I find you still get a great cash on cash return in the Class A neighborhoods if you can find a great deal. My typical deal.... i purchased a small home for $146,000 but the home is worth a lot more, I just found a great deal. The house was rented for $2200 per month after we put 20k into it. We immediately went to the bank to refinance and they valued it at $335,000 and gave us a loan for $234,000. So, our rent to value ratio isnt great, but with the financing, we had no money out of pocket and basically have an infinite cash on cash return.
That type of deal is available anywhere you go. You have to do a little more digging in the better neighborhoods, but it pays off in the end.
I am seeking a mentor with experience in raising private money for purchasing multi-family units, in exchange will help with remodeling, repairs and more...
@Shital Thakkar I personally like to buy close to where I live. But when I look at a new market I look at statistics like job growth, population growth, favorable(to landlords) political climate.
If you're in Texas, you're in a great location already.
Just move out from Dallas a bit. We're a small town about an hour from Atlanta and it's still a great place to find properties even though the Atlanta market is very hot now.
Travel out the interstates from Dallas and look at the smaller towns. Pay particular attention to college towns and/or towns experiencing a lot of population growth. Visit their chamber of commerce website and look for towns announcing new employers coming to town. Look for places where new construction has been slow but has picked up recently or may be about to.
I am seeking a mentor with experience in raising private money for purchasing multi-family units, in exchange will help with remodeling, repairs and more...
I work Brad Sumrok as a mentor. He has been very helpful to me and his group of students really work together to help each other to be successful. A great group of people. PM me if you would like to discuss my experience with Brad.