which Real estate Market is hot ?

25 Replies

Any suggestion or advice ? which market is hot or good to start real estate investing for multifamily or apartment buildings in the country ? And how does investor find or research about markets  ? 

My house I went up $100,000 in the past 24 months.  Rents are up 25% over last year.  Does that meet your definition of "hot?"  If so, try Springfield, MO.

@Aman Shahi Philadelphia is one of the hottest metro markets in the country right now. Tons of opportunity ranging from small SFH fix and flips up to the occasional 11 unit MFH. Buffalo and Washington D.C. are also pretty hot right now.

I love the St. Louis market, especially for buy/hold.  There's plenty of 2 and 4 family buildings to invest in.  Rents are relatively stable and there is a good amount of renters in that market as well.

@Aman Shahi

Arizona is piping hot. A lot of good value still in the market in different pockets around the metro area. I’m a local agent in the area specializing in multifamily and investments. Dm if you have any specific questions about the Arizona Phoenix market.

Originally posted by @Nick C. :

Which real estate market is not hot? 

Personal experience. Manhattan, New York City. 
Largely affected by COVID as many have moved out of the city to outer boroughs or the burbs. 
Would imagine this is the same case for Urban areas that are mature and overly-built. ies,. SF, LA, 

 

I'd be asking which market, niche or asset class is cool to luke warm but on the way to hot.

Already hot equals too stinking late. 

Originally posted by @Lenn Lin :
Originally posted by @Nick C.:

Which real estate market is not hot? 

Personal experience. Manhattan, New York City. 
Largely affected by COVID as many have moved out of the city to outer boroughs or the burbs. 
Would imagine this is the same case for Urban areas that are mature and overly-built. ies,. SF, LA, 

 Manhattan has been coming back strong the last couple of months. The Upper West Side, for instance, is up 73% compared to sales in April and up 106% compared to May 2021.  The problem is, you don't see many small multi-family opportunities here. You'd have to go to Queens, the Bronx or Brooklyn to make that happen

 

@Aman Shahi I’m investing in one of the best markets in the US. Since you are in LA as I am we should meet up and I’ll tell you about it. It’s so hot I can’t mention it here.

DM me.

@Aman Shahi

I will say we all will likely talk about where we live or invest and maybe that is both in some cases. So with that disclaimer out of the way, I will unapologetically say that Tulsa Oklahoma is both hot but still reasonably priced. Just yesterday a package with about 10 doors hit the market for $750k. Other opportunities in C class or distressed B class under $100k at times, and even moreso if you branch out throughout the MSA into tertiary micro-markets nearby.

If appreciation is the more desired metric, there are pockets where you can look at YOY analysis to find rapid appreciation.

Certainly, other markets are great too! Just always proud to see mine be on the map.

@Aman Shahi I am of the mind that it depends on how many deals you've done to date.  If its your first deal I think house hacking for your first experience is hands down the best way to go.  I just think the lessons happen so much faster living them first hand.  But if you are more experienced and have been around the block then I'd agree with what many people have said.  Those tertiary markets, or "adjacent to major markets" I think makes a lot of sense from a "bang for the buck" perspective.  I'm of coursed biased to my own area of central OH but there are many others. 

Originally posted by @Nick C. :

Which real estate market is not hot?

that is a better question .. they are out there though..  

 

@Aman Shahi A better question would be "which market isn't hot?". Properties are appreciating and rents are rising all around the country due to high building costs, low inventory of housing, and low-interest rates. 

I wouldn't decide on a market because it's hot right now. You should first be determining your PERSONAL long-term goals (think 10, 20, 30 years out) with regards to real estate investing. Do you want cash flow, appreciation, a combination of both? High-risk v low risk? How much capital do you have to buy? Do you have a network of people willing to lend you lots of money or not? Tenant-friendly vs landlord-friendly? What markets do you personally have a lot of knowledge about or have good connections in? 

Just because a market is hot right now, doesn't mean it will be in 1 year or 5 years or 10 years, and you should be buying real estate as a long-term investment, not just because it's hot right now.