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Updated about 2 years ago, 09/14/2022
Top 5 best multi family markets
In your opinion what are your top 5 real estate markets to purchase multi family (2-4 unit) homes.
I really like
Knoxville
Minneapolis
Birmingham
Phoenix
Kansas City, Mo
St. Louis
San Antonio(don’t like the property taxes) 
(There’s 7 of mine)
Let me know what your top markets are and if you’re investing in those areas
@Ken Gee
Hey Ken,
I’m not a expert at all. But I’ve been told to stay away from Florida because it was one of the first markets to get hit hard during the recession.
I personally love houses out there.
Just curious what your thoughts were
Thanks!
@Peter Nikic
Hey Peter I don’t, this is just the I formation I’ve found.
It seems like these areas pop up a lot on podcasts and forums.
How long ago did you buy your TN properties?
Originally posted by @Patrick Flanagan:
@Peter Nikic
Hey Peter I don’t, this is just the I formation I’ve found.
It seems like these areas pop up a lot on podcasts and forums.
How long ago did you buy your TN properties?
My properties are in NY, I'm just starting to look at TN.
If you don't already own an investment property, be careful buying a smaller investment property that's too far from home. Better to learn locally before venturing to other markets. Good luck.
@Peter Nikic
Oh ok,
I own a 4 plex in Oregon. But you can’t buy in Oregon for under 750k
I’m looking out of state for cash flow, investing in Oregon is a appreciation move for me.
I’m looking for 80’s built 4 plexes and newer. I’m not even going to mess with old plumbing, electrical, and so on. I’m a electrician so there is no way I’ll be buying a house that has knob and tube. I’ve demoed those types of houses and they are extremely expensive to put new up to date wire in. Plus they burn peoples houses down.
Just playing devil's advocate.... by what criteria are you selecting these markets? Anybody can throw out a few cities and say they're good areas to invest. But what makes these markets a wise choice?
@Patrick Flanagan
ANY where the numbers work
and you have the financial means
and you get your cost seg study is the best market
@Patrick Flanagan
If we are talking about multifamily, here's what you need in order for a market to be attractive (to us).
Demand side of the equation:
1. Population growth
2. Diverse employment growth
3. Median income that can support your projected rents (min. 3 times the projected rent)
Supply side - Assuming you are looking at B/C class assets, then:
1. They aren't building any new assets in that class (only new properties which do not compete).
Result - Increasing demand. Stable supply. The laws of economics means that is a bull market.
This defines most markets in Florida.
Your comment about being hit during a recession is true, well, kind of. The recent pandemic is a perfect example of what I am going to say.
Buy next to Disney or the beaches or there touristy areas - yep, you're going to get into trouble. It's always about the sub-market.
That's not what we do. Florida is growing very rapidly through healthy diverse employment growth. Properties are performing extremely well because of that growth and I don't see any of the underlying fundamentals changing anytime soon.
I could go on and on, but I hope this helps a little.
Warm Regards,
Ken
@Jeffrey Donis
What are your thoughts about the lag time of rental increases that has been apparent in the raleigh market for a long time? Potentially it will catch up all at once?
Yep--I am in San Antonio. Been here for 15 years. Explosive growth. Values tripled in that timeframe. Anyone need a local San Antonio type person to bounce ideas off or want to understand the local market I am your guy. I also co-chair the local Professional Investors Guild Chapter (PIG). Ex-Broker license # 562295. Pure investor, trainer, mentor now... Get'r done. Oh yeah--21 years in military as well (Air Force--TACP / Space Officer /Politico-Military Affairs officer). Love love love me some real estate -- 30 years in the game
@Patrick Flanagan
Im going to shock most on BP and say New Jersey. Northern NJ to be exact. Bergen, Hudson and Essex Counties specifically.
▪︎ BRRRR is great if you know what your doing
▪︎ Very strong property appreciation
▪︎ Rents are extremely strong
▪︎ Demand is very high
Most people avoid the state because of price and property taxes. Its all relative. A 400-500k purchase in 10-15 years will be worth 750-1mil
- Residential Real Estate Investor
- Kansas City, MO
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Originally posted by @Patrick Flanagan:
@Andrew Syrios
I’m looking for cash flow, do you invest in those areas. Midwest is no where near the prices in Oregon. I just got a deal on a 4 plex that was 750k, I’m cash flowing on it and it will appreciate pretty nicely
I'm in Kansas City and it's a very good cash flow market, although not what it once was. Real estate prices here have skyrocketed as well.
@Patrick Flanagan I'm OKC all the way! Like most markets inventory is tough and you've got to be aggressive to lock something down right now. I'm a big fan of all off-market stuff for that reason. For reference in this market I'm seeing A class duplexes for ~5% caps and I'm aware of a remodeled 12 plex property in a path of progress area for ~6% cap. So, the numbers aren't where they were pre-corona but they're not bad especially when you compare price point to other markets.
@Justin Tuggle amaazzzinngg! Lol thanks!
@Peter Nikic why? If point of entry is $300k in your local area and you can find a solid realtor and PM for an OOS investor with a $50k entry... why should you “buy local” first. Many people have disproved that notion.
@Stephen Schmitt
Those properties for $100k and under. Those must be C- areas?
Originally posted by @Jamie Nason:
@Peter Nikic why? If point of entry is $300k in your local area and you can find a solid realtor and PM for an OOS investor with a $50k entry... why should you “buy local” first. Many people have disproved that notion.
Buying local allows someone to more easily learn the process when buying their first property.
@Jeffrey Donis
I’ve been hearing about this too. Any additional information you can offer would be greatly appreciated
@Andrew Syrios
Do you feel these markets are overpriced?
@Ken Gee
Go on and on. Would love to hear more about Florida
@Patrick Flanagan
For me as long as the cash on cash ROI is 8-10% I'd look to markets that are less vulnerable and that guy can find good property managers and vendors in.
Always be open to new ideas and new markets.
@Stephen Schmitt
Those are really good numbers, I’d like to hear more about this. Thank you.
@Joshua McMillion
My boy invests there and loves it, it seems like it’s a little more expensive then Knoxville and Memphis. I can connect you with him if you want?
He also bought when it was a little cheaper haha
Shoot me a message if you have any questions. I have agent I work with out there too
@Phil McAlister
Great insight, do you look at smaller markets out side of big cities?
I live in a small town 30 mins from Portland Oregon, but since it’s close a lot of investors started buying in the “path of progress” since Portland is the new San Fransisco. They are making a killing
I really like looking for path of progress areas.
@Tucker Cummings
I’m not a expert on any of these markets, but these markets have came up over and over on podcasts, bp forums, blogs. Google right now, top out of state markets, these places will pop up.
It was more of me saying I recognize that these markets keep popping up, and I want to get some experts opinions on why they invest there.
There’s obviously tons of awesome markets, I just listed those as the top places I’ve found to start looking for cash flowing properties. Great job growth and rental demand.
Do you have markets you like and prefer?