Choosing a market for buy and hold multi family

[Darren Mesibov]

I am trying to isolate a market to learn, and ultimately in which to specialize.  My primary interest is buy and hold 10 - 50 unit multi family apartment complexes. I am looking for steady growth with a diverse economy, rather than a more cyclical market. My short list is Jacksonville, FL, Memphis, TN, Chattanooga,TN, or Dayton, OH.  I welcome any advice, but more specifically, I would like to hear from anyone who has had experience with this type of investing in smaller metro areas (Dayton, Chattanooga, etc.) and whether they have been limited in finding lenders who will work in smaller markets such as these. Easy travel from the S.E. is also a consideration. 

[Ken Breeze]

@Darren Mesibov lenders are giving out capital anywhere the numbers work. Check out @Omar Khan blog and a few other cool cats in the field to help you zero into your zones of preference. 

My choices depend on a variety of factors such as market fundamentals, job growth, demographics, what can residents pay for rent based on their median income and much more.

I, for one, don't invest in areas with a population less than 250K and we're about to raise that number soon. I also look at the Starbucks map to measure the amenities factor and so much more. Study your markets thoroughly before you zero into a sub-market and property. Looking at out of state markets is a good idea . From my perspective, having access to all the tools available on the internet, it's not much more difficult than doing it in your own neighborhood. The spreadsheet needs to pencil out in both scenarios.

Hit me up with more questions if you like.

Cheers, Ken