All Forum Posts by: David Lowe

1) Los Angeles

2) San Francisco

3) Oakland

Quote from @David Lowe:

Quote from @Sam McCormack:

Quote from @David Lowe:

Looking to invest in the US market for myself & my investor clients. Which are your top 3 cities & why ? 
Criteria: good cap rate, A-C neighborhood, cosmetic rehab. 

I am going good with the Greater Cincinnati market. Granted it is a market I know well because I live here and invest my career/capital here. I still stand by it is a great market

The cosmetic rehab portion is a different conversation, but that is for another day

 Can you be a little more specific Sam? What markets have worked well for multi-family in Cinci? And what is typical cost for a cosmetic rehab?

So the reason I said what I said is because people have different meanings for cosmetic rehabs. I would say about 90% of the investors that walk into a house that want a "cosmetic rehab" , will see bad carpet, terrible kitchen, nasty bathroom, etc. and then not like it because "it is too much work". When in reality it is exactly what they described they wanted. And what they really want is something that needs new paint and fixtures. And at that point it isn't worth the effort for the value add they are aiming for

Quote from @David Lowe:

Quote from @Joe Pryor:

I represent Oklahoma City and we have new multifamily duplexes for $410,000. They are 3/2/2 each side with vinyl plank, granite counters, stainless steel appliances including refrigerator, washer and dryers, tankless hot water systems, fence, blinds, garage door openers, sprinkler systems, and a 2% closing cost allowance in 4 locations this year and 4 more next year. We can build and close about 75 duplexes per year. Also Oklahoma is a landlord friendly state. Evictions take only two to three weeks tops. 

 $410k for a duplex is staggeringly high from an investor perspective. I am also surprised at that kind of price in OKC. Are there any sub markets there where you can invest in multi-family properties for sub $100k?

Maybe a tear down garage. The median price of a single family home in the US is $423,000 and climbing so $410,000 for a decked out new duplex is not "staggering high". Under $100,000 is a virtual impossibility. If you find good ones I will buy 100 of them cash. I have sold over 3200 investment properties in the last 35 years and the IRR on these is excellent.

I represent Oklahoma City and we have new multifamily duplexes for $410,000. They are 3/2/2 each side with vinyl plank, granite counters, stainless steel appliances including refrigerator, washer and dryers, tankless hot water systems, fence, blinds, garage door openers, sprinkler systems, and a 2% closing cost allowance in 4 locations this year and 4 more next year. We can build and close about 75 duplexes per year. Also Oklahoma is a landlord friendly state. Evictions take only two to three weeks tops. 

Quote from @David Lowe:

Looking to invest in the US market for myself & my investor clients. Which are your top 3 cities & why ? 
Criteria: good cap rate, A-C neighborhood, cosmetic rehab. 

I am going good with the Greater Cincinnati market. Granted it is a market I know well because I live here and invest my career/capital here. I still stand by it is a great market

The cosmetic rehab portion is a different conversation, but that is for another day

Hey @David Lowe

Great question! There are a lot of solid markets depending on your strategy. Here are three I like based on your criteria:

1. Huntsville, AL – Strong job growth (tech, aerospace, and defense industries), affordable property prices, and a growing population. You can find solid B/C neighborhoods with good cap rates and properties that need only cosmetic rehab.
2. Columbia, SC – Steady demand from government, healthcare, and universities. Low acquisition costs with room for appreciation, plus plenty of workforce housing opportunities in A-C areas.
3. Macon, GA (or similar secondary markets in the Southeast) – Rising rental demand with little new supply, lower competition than bigger metros, and strong cash flow potential. You can find properties with good cap rates that just need cosmetic updates.

Also, curious—what’s your target price range? We’re working on 12-24 unit developments in emerging rural markets with strong rental demand. If you’re open to something a little outside the typical metro areas, we’re seeing great returns in places where new supply is nearly nonexistent.

Looking forward to hearing what markets you’re considering!

Cheers,
Mike

Columbus, Ohio is a great market to consider if you're looking for appreciation markets that still cash flow. I moved here from Florida after seeing the expansive growth in the Columbus market.

There are multiple billion dollar companies dumping money into the city, such as Intel, Google, Honda, and Amazon. This is causing a huge influx of people moving here for jobs. And a lot of start-up companies are migrating to this city as well because of the OSU campus that has thousands of talented students graduating and looking for positions locally.

Everything that’s going on here in Columbus is attracting investors and other businesses from all over. A recent study showed that 80 people are moving to this city every single week, which will continue to increase housing demand.