Difficulty in the ABQ Market??

[Fionna Chau]

Hello BP community! My fiancé and I are interested in the multi-family market in ABQ, we are OOS investors from Los Angeles. We currently have no inventory in our portfolio, but in comparison to home prices here in LA, we thought ABQ would be "easier" to start our real estate investing journey.

We were wrong... although prices are lower in comparison to LA, we are having difficulties finding deals worthwhile. Properties don't even come close to passing the 1 % test (which I know isn't the end all parameter) because market rents are fairly low in comparison to listing prices. IT'S DEFINITELY A SELLER'S MARKET! I find that sellers are listing their properties way above market value especially in desirable areas like Nob Hill. When I'm running the numbers the COCROI is mediocre at current rents and even with raised market rents it's still eh. 

I know there is a lot of potential for growth and appreciation in ABQ with Netflix and Amazon, my fiancé is in the film industry and we have seen first hand how much jobs it creates in areas where big studios resides. Just wanted an open discussion about the current ABQ markets, hear other investors' success stories, mastermind together about the market, etc!

Thank you for reading my 1st post! Hope everyone is doing well and healthy!