I would focus on the South East or The West, (Arizona, Nevada). Depends on your strategy. If you're looking for cash flow, I would consider Cleveland, Cincinnati, Columbus.
We like the east part of TN, Nashville is a market that has emerged and is continuing to expand. Prices have risen dramatically the past 4 years. I would look at parts of Alabama and Kentucky also.
I know one of the big players last year here in Phoenix has moved on to San Antonio now.
Speaking of California, I just put an offer on a 52 unit out there. Offer is at a 7.5 cap, and we think it'll be accepted. So they're out there, you just have to work harder to find them and/or move away from the coast.
There has been many new MF built in and near Nashville. Unfortunately much of that inventory is NOT being absorbed. The cap rates are very low (4-5% for class A) because hedge funds and REITs are buying in sight. Class B and C are somewhat better, but it is tough to cash flow if you use traditional bank financing unless you but a big down payment. That does not mean you can't get lucky and find a motivated seller or a value add property.
I would focus on the South East or The West, (Arizona, Nevada). Depends on your strategy. If you're looking for cash flow, I would consider Cleveland, Cincinnati, Columbus.
We like the east part of TN, Nashville is a market that has emerged and is continuing to expand. Prices have risen dramatically the past 4 years. I would look at parts of Alabama and Kentucky also.