Cities for multi-family

Cities for multi-family

Calabasas, CA · Member since 2015 · 11 posts · 15 votes

Narrowed down to multi-family. Looking at Dallas, Austin, Atlanta, Nashville, Memphis, Charleston. Be interested in hearing from folks with direct experience in those markets. Would love some suggested zip codes to run some research. Hold period 5-7 years. Thanks!

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Levi BennettPro Member
Real Estate Broker · Charlotte, NC · Member since 2014 · 285 posts · 248 votes
3y
Quote from @Marc S.:

@Garrett Crosby I've been looking at Charlotte MFs. Are you finding that you are still getting good purchase prices? I've yet to get my 1st property. I have made contact with an agent there and haven't gotten many good deals. The asking prices don't even come close to the 1% rule.


MF is not normal here, it's nothing like up north. I think a lot of investors from more dense cities assume Charlotte has a higher density but it really doesn't. Typically, MFs here trade between 3.5% - 6% cap. To compound frustrations, already very low inventory is exacerbated by people all over the country that see Charlotte on the internet as a good place to invest and think they can apply what they know about MF to Charlotte.. it doesn't work, yet (literally) 10s of thousands of new investors look here every year for the same couple of hundred MF properties. To give you more perspective, most of these owners get 1-5 offers PER DAY since 2017. You will not find a "good deal" in MF in Charlotte without enormous luck. If you want 1% rule in the Carolinas, invest in short term rentals. 

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Calvin Cheong

    what size multi family?  duplex, 32 unit, 500 unit?

    and why not invest closer to home?

  • Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    @Calvin Cheong, not to be biased, however, happy to answer any real estate-related or market-specific questions regarding the Atlanta area if that's where you decide. Feel free to give me a call, text, email, etc. anytime (contact info listed in my bio). 

  • Calabasas, CA · Member since 2015 · 11 posts · 15 votes
    3y

    I would consider SFR but Class A/B.

  • Real Estate Broker · Chicagoland · Member since 2020 · 13 posts · 6 votes
    3y

    The areas surrounding Chicago be lucrative, but you need a good plan!

  • Memphis, TN · Member since 2022 · 230 posts · 99 votes
    3y

    Hey @Calvin Cheong

    I would love to talk with you about the Memphis and Nashville market! We do a lot of stuff in both of those areas! 

    Would love to connect and hop on the phone with you!

  • Real Estate Agent · Nashville, TN · Member since 2022 · 54 posts · 36 votes
    3y

    Nashville is a good market for multi fam. The cap rates here get better when you get the good deals while able to get more rent. Right now with the market changing, their are good deals to be found. As always though, the play for Nashville is still and buy and hold type strategy. You may not get the highest cashflow year one but the appreciation will be excellent if you get it and hold it. Love to connect and discuss further. 

  • Real Estate Agent · Nashville · Member since 2022 · 14 posts · 5 votes
    3y
    Quote from @Calvin Cheong:

    Narrowed down to multi-family. Looking at Dallas, Austin, Atlanta, Nashville, Memphis, Charleston. Be interested in hearing from folks with direct experience in those markets. Would love some suggested zip codes to run some research. Hold period 5-7 years. Thanks!


     Hey Calvin, some really hot areas in Nashville are East Nashville, Hendersonville, and certain areas to the north have been very popular with the investors that we work with in Nashville and around Tennessee. Keep in mind your buy box and the criteria that you need to hit for you to pull the trigger!

  • Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Calvin Cheong

    I'm in the Nashville market. I'd be happy to talk to you about it. 

  • Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    3y
    Quote from @Calvin Cheong:

    Narrowed down to multi-family. Looking at Dallas, Austin, Atlanta, Nashville, Memphis, Charleston. Be interested in hearing from folks with direct experience in those markets. Would love some suggested zip codes to run some research. Hold period 5-7 years. Thanks!


     With a hold period of 5-7 years, you should look into Columbus Oh. With Intell coming and our rate of appreciation, I think that's a good sweet spot for this market.

  • Real Estate Agent · Nashville, TN · Member since 2020 · 7 posts · 5 votes
    3y

    Hi Calvin! Nashville-based agent/investor/wholesaler here. In my experience, there are certainly always people looking to capitalize on multifamily opportunities here in Nashville, but even more so the markets surrounding. Murfreesboro (college town), Clarksville (military town), and Columbia (just north of Alabama border - growing quickly and still pretty affordable) are some hot spots. I also have some experience with MFH in Knoxville and Chattanooga which are also good long term hold opportunities. Lower price points & pretty similar rental rates. Would love to chat further about it!

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