Markets with Biggest Rent Increases

[Alex Craig]

I thought I would share this with the BP Community as it lists markets that have the largest rent increases from Q4 2015 to Q4 2015. Any on here surprise you? What surprised me that 1/2 of the markets where relatively smaller markets and most of these markets are not the typical cities (Dallas, Houston, Memphis, Indy, Austin, Chicago, St. Louis) that you constantly here people talk about on BP as places to invest.  Certainly the case for investing in areas that are untapped without a large investor presence. 

While the list is nationwide, the article focuses on parts of Arkansas, specifically Little Rock as we get alerts whenever data like this hits online since we are a Little Rock Turnkey property provider.  Little Rock does not get much press as other cities on BP, but it is hard to argue that LR is not a premium place to invest as the article points out double digit rent increases, low unemployment, strong job growth and low vacancy.  Add very favorable landlord laws and very cheap property taxes as a case for LR.

What I did find interesting in the article is the guy who owned and managed 80 homes and did not even know rents were going up.  Anyone who follows me knows that instances like this furthers my narrative that the local mom and pops and PM's doing business the way they have always done have no idea of the changing dynamics of the business.  

https://app.box.com/s/0xles4a16a6p2nvzpm9p3m1vlzu3...

[Gino Barbaro]

@Alex Craig

Hi Alex

My partner and I call these owners "mom and pops" and we call it our investment niche.  These landlords are usually burned out or just manage their properties like mom and pops.  Tons of value adds.

We are entering a strange period in the U.S.  It seems as if we are becoming a renter nation, and millennials are going to be driving that along with baby boomers.  Good time to own apartments along with low rates.  Only problem is people are starting to bid up these assets.  That's why we focus on these mom and pop sellers.  They are all over the place.  Tennessee is a great state to invest in.  We are currently in Knoxville, with 675 units.  It's getting harder to find deals, you just have to look harder.

Good Luck

Gino