Multifamily Investment (Landlord Friendly /B Class Location)

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Multifamily Investment (Landlord Friendly /B Class Location)

Alecia Downing
Rental Property Investor 路 Queens, NY 路 Member since 2020 路 33 posts 路 8 votes

I am a registered nurse, located in NYC, looking to purchase a multifamily in ANY landlord-friendly states, I have the funds for down payment/closing, I'm looking for financing options (was going to do typical conventional) but interested in learning more options and up & coming locations at this time. Advice, please & thank you.

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Joe FunariBusiness Member
Real Estate Agent 路 Keller, TX 路 Member since 2017 路 850 posts 路 825 votes
3y

@Alecia Downing Texas is one of the most landlord friendly states. Evictions are rare and the courts have no backlogs unlike other states. I work in the Dallas/Ft. Worth area. I recommend a buy and hold strategy here in this area. I recommend if your considering Texas to reach out to  @Andrew Postell to discuss lending options. He is a fellow investor and my preferred lender for both single family and multifamily properties. 

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  • Billy Daniel
    Rental Property Investor 路 Russellville, AR 路 Member since 2014 路 684 posts 路 509 votes
    3y

    Hey @Alecia Downing!  I'm a realtor/investor in Arkansas and can say that this is very landlord friendly state.  On top of that, taxes are fairly low and its not that difficult to find cash flowing properties even in this (still) very warm market.  I'd love to connect if you would like to hear more!

    I've heard that markets like Cleveland, Pittsburgh, and Madison are on the way up, but I don't know anything about the laws in those areas.

    1Reply
  • Rob Chiang
    Rental Property Investor 路 San Mateo, CA 路 Member since 2017 路 108 posts 路 49 votes
    3y

    So many people say go to Texas and Florida.   

    1Reply
  • Alecia Downing
    OP
    Rental Property Investor 路 Queens, NY 路 Member since 2020 路 33 posts 路 8 votes
    3y
    Quote from @Billy Daniel:

    Hey @Alecia Downing!  I'm a realtor/investor in Arkansas and can say that this is very landlord friendly state.  On top of that, taxes are fairly low and its not that difficult to find cash flowing properties even in this (still) very warm market.  I'd love to connect if you would like to hear more!

    I've heard that markets like Cleveland, Pittsburgh, and Madison are on the way up, but I don't know anything about the laws in those areas.

    Would love to hear more about AK, looking specifically for a multifamily, with great cash flow, location & a good condition property. 

    1Reply
  • Sam McCormackBusiness Member
    Real Estate Agent 路 Cincinnati, OH/NKY 路 Member since 2021 路 1k+ posts 路 833 votes
    3y

    @Alecia Downing

    Hi Alecia, I am an agent in Cincinnati, OH, known for its potential cash flow. Feel free to reach out and ask me anything about the Greater Cincinnati market, i'd be happy to answer anything you may have! 

    [email protected]859-443-4952
    Sam McCormack Realtor
    View Page
    0Reply
  • Alecia Downing
    OP
    Rental Property Investor 路 Queens, NY 路 Member since 2020 路 33 posts 路 8 votes
    3y

    Thank you, are you an agent? 

    0Reply
  • Rick MartinPro Member
    Rental Property Investor 路 Redondo Beach, CA 路 Member since 2017 路 411 posts 路 477 votes
    3y

    If you want to get into the RE business and take on land-lording, I would say look to establish good relationships with solid property management in whatever state you choose. Maybe Florida or the Carolinas could work for you, given your proximity. If you find it is the cash flow, appreciation, and tax advantages you like, but not necessarily the land-lording or finding and qualifying for deals, consider leveraging the experience and network of a syndicator(s). Then you can invest in any state you wish.

    0Reply
  • Tavis Cody Patton
    Real Estate Agent 路 Northern Kentucky/Cincinnati 路 Member since 2022 路 1 post 路 0 votes
    3y

    Hello @Alecia Downing,
    I am a realtor/investor in Northern Kentucky. Alot of our cities close to the Ohio river are very heavy in rental properties as well as short term rentals (air bnb, vrbo ,etc). We are definitely landlord-friendly. I'd be happy to help you find a multifamily in this area, if it is one you would be interested in. 

    0Reply
  • Alecia Downing
    OP
    Rental Property Investor 路 Queens, NY 路 Member since 2020 路 33 posts 路 8 votes
    3y

    Kentucky is definitely a state I鈥檓 interested, would love to connect & start looking at investment properties.

    0Reply
  • Rob Bergeron
    Real Estate Agent 路 Louisville, KY 路 Member since 2017 路 1k+ posts 路 1k+ votes
    3y
    Quote from @Alecia Downing:

    Kentucky is definitely a state I鈥檓 interested, would love to connect & start looking at investment properties.


     Happy to jump on a call. I'd probably target C multi in our market (Louisville). 

    0Reply
  • Ricardo Hidalgo
    Real Estate Agent 路 Member since 2019 路 569 posts 路 257 votes
    3y
    Quote from @Alecia Downing:

    I am a registered nurse, located in NYC, looking to purchase a multifamily in ANY landlord-friendly states, I have the funds for down payment/closing, I'm looking for financing options (was going to do typical conventional) but interested in learning more options and up & coming locations at this time. Advice, please & thank you.


     Hi Alecia, what is your preferred price point? Are you wanting to short term or long term the multifamily investment? Would you considered something new or rehab opportunity? Do you have an expectation for appreciation and cash on cash return. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager 路 Royal Oak, MI 路 Member since 2012 路 12k+ posts 路 9k+ votes
    3y

    @Alecia Downing

    We think the Midwest is a GREAT place for OOS investors to consider!

    YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...

    Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

    Many OOS investors set themselves up for failure because they don't truly take the time to understand:

    1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

    2) The Class of the PROPERTY they are buying - which is relative to the overall area.

    3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

    4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

    5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

    6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

    7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

    8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

    9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

    10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

    11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won鈥檛 pay them enough for the time required and even then it鈥檚 too difficult successfully manage them.
    ***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

    https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

    Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

    Good luck with whatever you decide馃槉

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
    WebsiteView Page
    0Reply
  • Joe FunariBusiness Member
    Real Estate Agent 路 Keller, TX 路 Member since 2017 路 850 posts 路 825 votes
    3y

    @Alecia Downing Texas is one of the most landlord friendly states. Evictions are rare and the courts have no backlogs unlike other states. I work in the Dallas/Ft. Worth area. I recommend a buy and hold strategy here in this area. I recommend if your considering Texas to reach out to  @Andrew Postell to discuss lending options. He is a fellow investor and my preferred lender for both single family and multifamily properties. 

    2Reply
  • David Leggett
    Real Estate Broker 路 Cleveland, OH 路 Member since 2018 路 227 posts 路 133 votes
    3y

    Lot's of great info!  I literally learn something new every time I read through these threads.  Ohio is a very landlord friendly state, from what I've heard, especially from my New York clients.  I have clients in Toronto who are amazed by how landlord friendly Ohio is compared to Canada, but that's a bit different market. 

    Prices have gone up slightly, but Cleveland is still one of the top cash flow markets in the country and I'm starting to see more deals become available as the market slows a bit.  But up until the beginning of the year, I still had clients putting in full priced offers and not even getting an email back, because they had so many higher offers, but things are becoming more buyer friendly from what I'm seeing.

    1Reply
  • Aj Parikh
    Rental Property Investor 路 Centreville, VA 路 Member since 2019 路 1k+ posts 路 799 votes
    3y

    Hi Alecia, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider 路 San Jose, CA 路 Member since 2010 路 4k+ posts 路 3k+ votes
    3y

    @Alecia Downing It depends on your objectives and criteria but I typically recommend market with with affordable prices and growing populations, jobs, strong income and modern/diverse economies and industies. These are the markets that will not only cash flow well in the short term but also give the best opportunity for long term appreciation and rental increases. That's where your real wealth with come from. I'm partial to markets in the Midwest like Indianapolis, Kansas City and the Quad Cities. We've been active in those markets for over 10 years. I'd be happy to share my advice and help if you want to reach out and connet. 

    1Reply
  • Alecia Downing
    OP
    Rental Property Investor 路 Queens, NY 路 Member since 2020 路 33 posts 路 8 votes
    3y

    lets connect

    0Reply
  • Bob S.
    Real Estate Consultant 路 Cleveland 路 Member since 2020 路 6k+ posts 路 3k+ votes
    3y
    Quote from @Alecia Downing:

    I am a registered nurse, located in NYC, looking to purchase a multifamily in ANY landlord-friendly states, I have the funds for down payment/closing, I'm looking for financing options (was going to do typical conventional) but interested in learning more options and up & coming locations at this time. Advice, please & thank you.

     Cleveland, You can get 100% hand off properties with 10% net ++ net caps, based on cash purchases. Nothing I do not know about this market having done business there the last 10 years or so. I know every street, where to buy and what to pay. So many did not listen to me when I said by in certain areas , now those properties are double triple or more, and this was on top of the 20% ++ net caps..

    Its all about knowledge and your team 

    0Reply
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