Hi, I am new to the Real Estate investment world and would like to learn more an out multi family properties.
More to the point I wanted to see if anyone had suggestions on sites or resources that are available that I could use to determine locations to start looking for opportunities.
I live in Southern California and the market here is out of my current price range. I will be looking to purchase out of state and would then need to also work with property managers, etc.
Thanks in advance for any help!
@Chris Maudlin Welcome to BP! So in regards to locating MFR properties, I would get on loopnet (most deals on here are not deals at all FYI) and start looking at deals where you might be interested and analyze them to get a feel for the numbers and required ROI's that you are looking for. I always call the broker, just to establish the relationship and let them know my buying criteria and stay in contact. You will come to find out that the best deals are usually built from relationships, not necessarily from listed deals to the market. The BP calculators are a great start for analyzing deals and I have also built my own financial model I help investors analyze deals (have an example on my website below). Best of luck and let me know if you need anything else!
Thanks Curtis! I appreciate the information.
@Chris Maudlin check out Todd Dexheimer's write ups on emerging markets and his opinion on good markets to invest in through 2020:
And then David Green has the book Long-Distance Real Estate Investing that would be a good start as well...
@Chris Maudlin You’re getting good advice and links so far, here’s what I’d add: You need to define “small multifamily”. That could mean “duplex” or “12 unit apartment building” depending on your point of view. The paths to finding them, financing, etc. all start to change when you look at 5+ units.
That aside, pick 2-3 markets you think are interesting. There are a billion lists, opinions, etc. on how to choose a market, the “best” market, etc. The reason that I’d start there is that it could lead you to your answer of duplex vs. 12-plex.
There are more than a few markets where you couldn’t pay me to own a property...
Thanks Andrew! I am in the process of reading the David Green book currently while also listening to as many BP podcasts as time permits. These have been really beneficial so far as well as the advice I have received on this post.
Thanks to the postings I seem to have some more due diligence that I need to do to determine the size and exact markets. Thank you again for the input!
@Chris Maudlin Multifamily rental rates in the St. Louis region have risen over 14 percent since 2014.
@Chris Maudlin this link really helped me. There are so many markets! The Midwest and South are much more affordable but appreciation is less (read a more stable market.) Good luck!
thank you Jack and Shea!