Best small multifamily market?

Question

Looking for great cashflowing B class mutlifamilies with favorable returns priced 150-300k or higher (but I figure if higher then might as well get into apartments). I've done the SFR's, just did a duplex in Cleveland last year and it's pretty good, better returns than my SFR's. So I figured let's do more of these. But, the quads I look at with the best return all seem like D class 500 a month rents and I really don't want to deal with that kind of stuff.

I see Cleveland's got em. They got gnarly taxes too. Who else?

I see Cleveland's got em.  They got gnarly taxes too.  Who else?

James Wise · Answer

Taxes in KC are shockingly low to what we're used to up here in Cleveland. If you do look into KC some more you'll want to check out The Ultimate Guide to Grading Kansas City Missouri Neighborhoods. Also have a similar guide Birmingham, Alabama which also has shockingly low property tax rates.

Alex Olson · Answer

I can only speak for KC because that is where I invest in and broker multifamily deals in. KC region has pretty low taxes (Kansas seems to have higher property taxes), have a fair about of $300k or less duplexes, but fourplexes are hard to find that are not crazy expensive and even when they are on the market they go fast. Based on my market research Cleveland and KC are similar in terms of returns right now but KC is higher priced. If you do decide to look at other markets I would work with a good brokerage firm that knows the market well and can build a relationship with them.