Top Multifamily investment markets

20 Replies

Hello BP community, I am new here and planning on investing in multifamily property. Currently checking Austin and San Antonio areas. But want to know if there is any other location which might be good for multi family investment. Also, I am OOS investor. Any advise is appreciated. Thanks!

Hey! Give more info. Are you looking for 2 to 4 units? 200+ units? Do you have a price per unit range? Is there any area of the USA you prefer? Things like that help us give you better suggestions.

@Jay Malaviya Welcome and congrats on getting going...I'm big on Columbus...it's a "sleeper" city and it will overtake Austin in population in the next 5 years like it has overtaken Nashville, Atlanta, San Francisco and many other cities...the trajectory is hard to believe....and price points are 50-70% of comparable markets

Here are the MF price points and price appreciation over the last 5-years for the top 20 zip codes

https://www.biggerpockets.com/...

Hey @Jay Malaviya I live here in Austin. There are plenty of markets that have small multifamilies. 

For Austin talk to @Victor Steffen he's an investor and understands the numbers.

I also have been looking in San Antonio. If you are looking for something in San Antonio talk to, I have an agent that should be able to help you there!

@Luka Milicevic

There are great job opportunities, affordable housing, great schools (OSU), professional hockey, a great downtown/short north, easy access to lakes and hiking at hocking hills, and 8 months of winter!

From an investment it’s a great combination of appreciation and cash flow with lots of new developments happening.

@Luka Milicevic tip of the iceberg...

  1. 2nd Largest City in the Midwest behind Chicago (And Larger than Atlanta, San Francisco, Indianapolis, Charlotte, Nashville, Fort Worth, Denver, Seattle...and many others)
  2. Port Cities are a Thing of the Past- Columbus is the "Center of the Country"
  3. Cost of Living is Quite Low with High Quality of Life When Compared to Other Large Cities
  4. 1st Amongst the 10 Largest Midwest Cities in US for Population Growth, Job Growth, and GDP Growth.
  5. Realtor.com "Hottest Real Estate Market" in the US April 2019/ December 2020
  6. AAA Bond ratings
  7. #2 Metro Market in US for Mobile Network Performance
  8. Average age 31yrs. & Top "Hipster" Destination in the US
  9. 88 Jobs Paying Higher Wages than New York City
  10. Home to 2nd (soon 1st) Largest University in the US ($7B in Capital Projects & 60,000+ students)
  11. Hotbed of Startups and Venture Capital- "Exodus from Silicon Valley"
  12. 1st "SMART" City in the US ($50m DOT Grant)
  13. Intentionally Underbuilding to Hedge Risk...30,000+ units short of demand
  14. 11-County Region with Huge Room for Growth & Expansion (3million+) over the next 20-years
  15. 50% of the Columbus Population Rents
  16. All-time Record Low Homeownership for the Millennial Generation (largest population in America-bigger than Baby Boomer population)
  17. The Average Market Rent in Columbus has Climbed to $2,000/mo. (existing "affordable" inventory becomes very attractive)
  18. "1%" Rent-to-Purchase Price Ratios and 7-10% Cash-on-Cash is Normal.
  19. An Abundance of C/C- Locations in Extreme Transition with Verifiable Upward Trends
  20. Neighborhoods with 70-90% Price Appreciation Over the Last 5-Years
  21. 20,000+ Multifamily Structures in Franklin County; Less than 10% Transact Annually
  22. Market Rents are Impossibly Low Across Existing Small MF Inventory
Originally posted by @Polo Vazquez :

Hey! Give more info. Are you looking for 2 to 4 units? 200+ units? Do you have a price per unit range? Is there any area of the USA you prefer? Things like that help us give you better suggestions.

Hey @Polo Vazquez

Yes I am looking for duplex or fourplex, prefer fourplex. I don't want to go over $500k. Right now looking at San Antonio and prefer that but just not sure if it's a good market to invest right now and if it has a good appreciation. So wanted to see suggestions from BP community about other markets too.

 

Originally posted by @Brandon Sturgill :

@Jay Malaviya Welcome and congrats on getting going...I'm big on Columbus...it's a "sleeper" city and it will overtake Austin in population in the next 5 years like it has overtaken Nashville, Atlanta, San Francisco and many other cities...the trajectory is hard to believe....and price points are 50-70% of comparable markets

Here are the MF price points and price appreciation over the last 5-years for the top 20 zip codes

https://www.biggerpockets.com/...

 Thanks Brandon for the suggestion. Will look into that!