Best cities to buy multifamily building for buy-and-hold purpose.

[Syed Naqvi]

I am planning to buy a multifamily building/complex of around 4 to 25 units with in next few months. So far I have a few Single family and townhouses and have a good experience of managing them. Any advice on BEST CITIES for buying multifamily building for buy and hold purpose?

[Yousif Abudra]

@Syed Naqvi @April Chim

With Tier I Markets peaking, for MFH investments, we will continue to focus on Tier II and Tier III markets with resilient economies buoyed by employers and universities. 

Here are a few new markets on our watch list:

Fort Worth, Texas

Home to more than 7 million people and growing, the Dallas/Fort-Worth area has added an average of ~100,000 jobs/year since 2010. Local leaders have made attracting large employers a high priority, and major corporations such as AT&T, American Airlines, and Lockheed Martin call the metroplex home. With the University of Texas at Arlington, Texas Christian University, and the University of North Texas also located in the region, there is no shortage of well-educated millennials eager to stay after graduation.

Raleigh, North Carolina

The metro area surrounding Raleigh, NC has been one of the fastest growing in the country. Since 2010, the city’s population has increased ~15%. USA Today recently named Raleigh the third best place in the U.S. for business and careers, most notably in the technology and life sciences sectors. Nearby tier one universities with deep talent pools include NC State University, the University of North Carolina at Chapel Hill, and Duke University. They provide a solid foundation that continues to fuel innovation and prosperity in the region. Additionally, Red Hat (headquartered in Raleigh) and Citrix are both major employers in the area. Technology giants like these, along with Research Triangle Park (which includes neighboring anchor cities Durham and Chapel Hill), have been catalysts in the area’s continued revitalization and economic growth.

Chattanooga, Tennessee

Chattanooga proudly touts its “Gig City" badge. When the city built the fastest internet in the U.S., it attracted new businesses to the region. According to an independent study conducted by the University of Tennessee in 2015, this helped add roughly $865M to the local economy since 2010. With its 140-acre downtown “Innovation District” anchored by the Edney Innovation Center and its budding start-up scene, Chattanooga is reshaping itself as a technology solutions hub.