San Francisco, CA · Member since 2016 · 75 posts · 26 votes
Hey guys,
I'm looking at a few cities for my 1st MF - I'm hoping to keep the property for 3-5 years, and want to buy somewhere where population growth, income & job growth, and job diversity are highly likely. I was originally looking at everyone's favorite markets: Dallas and San Antonio, and Tampa and Orlando. After finding pretty poor value, I'm thinking I need to venture elsewhere.
Does anyone know of any markets that one should consider for good MF value?
Hi @Kusum Chanrai - TX is getting a little "bubble-y"... The midwest has good value but growth is not as much of a guarantee. Philadelphia? Anyway, when you get to the point of needing financing PM me. I have a great MF lender I've used. Easy to qualify, fast closing. I even have a lender that only looks at your credit score and an appraisal on the property and you can get a 75LTV loan.
Hi @Kusum Chanrai - TX is getting a little "bubble-y"... The midwest has good value but growth is not as much of a guarantee. Philadelphia? Anyway, when you get to the point of needing financing PM me. I have a great MF lender I've used. Easy to qualify, fast closing. I even have a lender that only looks at your credit score and an appraisal on the property and you can get a 75LTV loan.
I agree with @Meghan McCallum. There is a ton of opportunity in the mid-west Western Illinois and Eastern Iowa. I have been seeing a ton of Job growth out here in Cedar Rapids, Iowa City Area and have been coming across more and more people from major cities like LA, NYC, and MIA because of the better quality of life, and more jobs moving remote.
My mentors always suggest investing in areas that you are familiar with first with professionals you can trust. For the first few may want to invest in your own backyard....
The activity we're actually seeing in San Antonio, combined with data from several real estate economists, says there's no bubble. Our market is hot and will continue to be for some time. The link below lists several factors and their sources.
I'm with you. I live in Los Angeles and can't find anything of value here. No cash flow at all. I would love to go out of state but just don't know other parts of the country. If you find an area that looks promising please let me know.
San Bernardino/ Palm Springs areas have some really good deals right now if you are working with the right people. We have two in escrow and looking for a third very soon. All have some great upside and value add positions that can withstand a declining market.
@Nathan Diones What sort of cap rate are you seeing in San Bernadino and how is the tenant base in terms of crime, turnover etc? What do you mean when you say working with the right peopel? Thanks.
@Mark Whittlesey - I am seeing caps within certain areas within San Bernardino and Riverside Counties 6%-7%, with good upside on the right deals. San Bernardino City, cap rates are about the same, population is high but majority of the tenant demographic is low income with housing vouchers, very high crime rates and shenanigans.
There some good areas that have multifamily opportunities within both counties that have good long term (5-15 year) upside, stable tenants and a good employment base.
Working with the right people is merely having the right network of brokers, agents and landlords who are feeding the deal pipeline. I am a commercial broker with a focus on multifamily deals throughout San Bernardino and Riverside Counties, I also buy apartments within these areas.
I would like to talk to you about some of the opportunities that you may have in those areas. I have looked on my own and have not see anything of interest. I will love to call of meet so we can talk
@Kusum Chanrai make sure you will still make money when paying transaction costs if you are only doing a 3-5 year hold in a market where prices don't move that much!
There were a couple of reports released in the last 10 days and a few markets jump out to me in no particular order: San Antonio, Cincinnati, and Tampa.
I live and invest in Chicago and there are some great areas in the city. Many investors are seeing growth along the lakeshore, Milwaukee corridor and the near South side. Cincinnati is another market that I love and will be a priority focus for 2017.
I love this question, it always reminds me of Buridan's Donkey..
Wikipedia..
It refers to a hypothetical situation wherein a donkey that is equally hungry and thirsty is placed precisely midway between a stack of hay and a pail of water. Since the paradox assumes the donkey will always go to whichever is closer, it will die of both hunger and thirst since it cannot make any rational decision to choose one over the other.
I have similar thoughts looking for other markets. I just look and look, there are so many options. Once you pick a city like Cincy. How do you choose what neighborhood? How do you choose what streets? Basically so many decisions, nothing happens
If you do this, pick one area (I would assume all areas are good) and stick with it. Don't be a donkey- (I just read Tools of the Titans by Tim Ferriss, i think this was the Chris Sacca chapter...)