Buying Multifamily out of State

[Brian Keeler]

I live in NYC. 

I need to buy my first multifamily property.

I have sponsors and investors for deals up to $7M

What should I focus on and why?

I expect to be investing out of state due to compressed local cap rates.

Anyone's input is appreciated!

[Patrick Britton]

@Brian Keeler Where to invest will depend entirely on your need for appreciation expectation vs. cashflow.  For instance, if you want pure appreciation expectation (AE) then i would out your window :)  NYC, San Francisco, Seattle, Boston, Miami, Honolulu, and maybe Denver and Austin.   If you want pure cashflow then i'd consider certain areas of Chicago, Toledo, Memphis, Kansas City, Columbus, Cleveland and Detroit.  

A nice but arguable in-the-middle would be something like Bellingham, WA (yes, i have a biased opinion), Spokane, WA, Ann Arbor, MI, Arlington, TX, Grand Rapids, MI.  

While the whole amazon thing is going to be great for one city, rest assured that once it's decided values will increase 20 - 25% overnight.  That city might be worth a small allocation of funds but it's very risky investing in any single asset, or location.