How many fortune 1000 co. do u want to see in your rental's area

7 Replies

@Matt Lopez

I have never chosen a market for multifamily investing strictly by the Fortune 500/1000 companies in the area and I feel in the era of COVID, this is even less important.

When selecting a market for cashflow and potential appreciation we want to see diversity of employers and a diversity of industries. I don't want to see one employer account for 15%+ of the tenant base and no industry account for more than 25% of the tenant base. Poverty rate under 15%. I want to see consistent job growth in the area. I want to see a consistent decrease in crime over the past 15-20 years with a consistent increase in population. I want to see areas with median home prices over $80k and the per unit price I am looking at buying should be (less than) half the cost of the median home price. I want to see large, established, national tenants near the property (Starbucks, Target, chain grocery stores, chain restaurants etc.). These companies have done more research on the area than you or I will ever do.

Yes great advice @Charles Carillo . However, if you can get into a market even before the big box boys show up and know that they will be coming, that would truly be ground floor investing. Not easy to know (having a crystal ball or dumb luck) but I did do this in Chattanooga TN when I started there in 2009 and actually it was not luck.