How important is Location for MFs

[Matthew Ries]

Hello everyone,

I have a question regarding MFs for all the seasoned investors.  How important is "location" in MF investing?  Currently, I invest in SFs and location is very important for any prospective properties - 1) because it may attract a certain tenant (ie. great school district, or close to a college campus) and may also help me avoid certain tenants that might be troublesome and 2) future resale/appreciation.

I am interested in pursuing MFs, and I find some really great cash flowing properties in my city (and out of state), but they are located on the edge of what might be considered less desirable part(s) of town.  Do you ever sacrifice location for cash flow?  Would you forego location if the deal was a clear value add move?  I feel like there is always some give/take in real estate, might sacrifice some cash flow for a prime location and newer property and vice versa - am I wrong?

Ideally, a newer MF in the expanding part of the city with great numbers (and within the budget) is what I'd like, but unfortunately that does not exist.

Looking forward to the feedback.

Thanks