All Forum Posts by: Matthew Schroeder

Make sure you get comps for this property & make sure that the sales are within the same neighborhood (no more than 3 blocks east or west of the property). That will give you the answer. It may be the case that you will not get many (if any) MFR comps in that neighborhood, so as a back-up, look at what the SFRs in that same neighborhood are selling for, just as an additional reference point.

@Michael Tan  Other local Indy people have given you good input.  Here are a few more thoughts.

1.  Don't walk away ... run away!
2.  If you would like to lose $30 - $50k, this deal is for you.
3.  On a scale of 1-10 (10 being best), this deal is a 1.

@Scott ONeill  That is awesome!  Good luck.  Keep BP updated - always good to hear interesting stories.  I wish you much success!  :)

@Yonah Weiss  Thank you for the reference!  I will connect with her.

@Scott ONeill  Thanks for the input.  Actually, that general area was where I was going to start my search, starting from Scottsdale & emanating outward.  Are you looking at MFRs or SFRs?

@Chris Tran  PM sent.  Thanks.

@Shiloh Lundahl  Hi, Shiloh!  I am a real estate investor with SFRs & MFRs in both Denver & Indianapolis and will be flying into Phoenix on March 29th to do some market research & look at properties, so regrettably, I will miss your meetup by a few hours.  :)  Hope to connect with some of the participants and/or attend one of the future meetings.  Thanks!

Hi All,

I am an experienced real estate investor with SFRs & MFRs in both Denver & Indianapolis, and I am exploring the greater Phoenix area as a new market.  I would be interested to hear the input from local market participants on which markets, sub-markets have the best prospects on a 3-5 year hold.  I am considering MFRs with 2-10 units.  While cash flow (cap rate) is important, the growth prospects of the market are more important.  Would be particularly interested in gentrifying neighborhoods & value-added opportunities.

I will be in Phoenix next week to start looking at properties.

Any input/suggestions are greatly appreciated!

Best,

Matthew

The most recent quarterly data from to the Apartment Association of Metro Denver (AAMD) shows that the Denver rental market is cooling off (see link to article below).

Average apartment rents in metro Denver fell for the second quarter in a row in the fourth quarter of 2016 as the market struggled to absorb a record number of new units.

Average apartment rents fell from $1,371 in the third quarter to $1,347 in the fourth quarter, marking the largest quarterly drop in the 36 years the report has been conducted. Median rents stayed flat at $1,329 per unit.

Apartment vacancy rates shot up from 5.1 percent to 6.2 percent.

Metro Denver Apartment Rents Drop (Denver Post)

An interesting article in the New York Times talking about how Indianapolis is luring technology industry talent.

How Indianapolis, Long Known as a Manufacturing Center, Is Luring Tech Talent (NYT)

Excellent, @Mark M.!  I will try to make it.  Thanks.

An interesting article on Indianapolis real estate, specifically downtown (see link below).  Interesting data points include.

• Downtown occupancy is 94.7 percent. Most apartment complexes are close to full occupancy.
• Downtown rental inventory expected to grow by more than 10 percent in each of the next two years.
• Downtown rent prices last year grew by 8.2 percent to a record $1.34 per square foot. A typical one-bedroom apartment costs $963 and a two-bedroom, two-bathroom costs $1,480.

Indianapolis Might Have Hit Peak Rent Growth (Indy Star)