Best multifamily markets

[Amanda Davi]

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

[Nicholas Ruscio]

I love multifamily properties! Great return and debt to service ratios. Feel free to send me a PM with any questions. 

I would look in the tech hubs. Cities with a strong tech industry, such as Seattle, San Francisco, and Denver, can offer consistent demand for rental properties due to well-paying jobs.

If you into Airbnb/ STR markets with a strong tourism industry, like Miami and Las Vegas, can provide short-term rental income.

Lastly cities in the southern and western United States, like Austin, Atlanta, Dallas, Phoenix, and Orlando, have experienced strong population and job growth, making them attractive for real estate investments.

[Bruce Lynn]

What size/price multi are you looking for?

Right now the big Texas cities probably have flat rent growth and flat appreciation, maybe even falling prices a bit with higher interest rates.

However I think when you look at the dynamics of the market there is a perfect storm building for owners and against renters.  New construction is down significantly for large multi.  Population and Job growth still strong.  As soon as leaseup is complete for the big projects, I'm guessing there will be about a 3-5 year lag in construction.  By then probably interest rates will have shaken out, prices stabilized, and plenty of people jumping back in the market.   The trick is, you can't wait until that happens to profit.  You have to be actively looking and making strategic buys today....and then ride that wave.

We always say to look at landlord friendly states which is NOT Seattle, Oregon, or San Francisco.....stay outta there.   Indiana and Ohio probably continue to be strong places to consider....then the normal markets like Texas, TN, SC, NC, GA, FL, maybe AL

[Peter Dorinsky]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

Hey Amanda, I'd also recommend checking out Ohio, specifically Columbus. Many big-tech companies are either moving into the market or expanding their business here, which is contributing to rapid economic development. Intel is investing $20 billion to build chip manufacturing plants in Licking County, which is projected to create 30,000 new jobs. This is the largest private investment in state history. In addition to Intel, other big companies like Google, Amazon and Facebook are also expanding their business here in Columbus. Columbus is also home to The Ohio State University, one of the largest public universities in the country, as well as L Brands, a big player in the retail industry. 

Ohio is also a landlord-friendly state. Columbus is a great hybrid market if you're looking for cash-flow and appreciation with homes at a lower price-point and lower taxes. If you're interested in learning more about the market I'd be happy to connect.

[Bob Stevens]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

 Cleveland is a great market, however zero inventory. I did manage to get a 7 unit, with about 20% net cap

All the best 

[Remington Lyman]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

 You should look at Ohio. I have been investing in Columbus since 2017

[Dominik Porobic]

I recommend southern Maine. You have everyone moving here because it's such a safe place to be geographically and to raise a family. Also Boston is only an hour and a half away, 45 minute flight to NYC. People are flocking here and there's plenty of ways to optimize a rental property which many aren't taking advantage of. I can spend all day talking about why this is such a great place compared to anywhere else in the US. 

[Sam McCormack]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

Amanda, can't recommend Northern Ky and Cincinnati enough. Landlord friendly, lower property taxes (especially in Northern KY), inventory (I even do cold calls for off market properties!). You will more often than not see properties be priced at the 1% rule as well. Let me know if that interests you or you have any questions!

[Anthony L Amos Jr]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

 Invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 Fortune 500 companies, over +25% population change since 2000, and the 2016 smart city challenge award winner (https://www.columbus.gov/smartcity/). Furthermore, Intel is spending 20 Billion dollars to build two semiconductor plants, and many more great things presently and coming in the future. Needless to say, Columbus will remain a strong real estate market for the foreseeable future.

[Jimmy Lieu]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

Hi Amanda, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

[Russell Brazil]

The market you are in

[Jordan Moorhead]

It's rough out there right now. If you have something that works in Indiana I would stick with it. Why try to reinvent the wheel @Amanda Davi?

[Alfath Ahmed]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

 Hi Amanda, I would take a look at the Columbus market. My mentor owns 700+ units in Schererville, IN but even he is venturing to the Columbus market to buy large multi-family. 
There are areas that I recommend in the Columbus market that I personally invest in like Old North, Old Town East/King Lincoln Bronze Ville, Merion Village, Driving Park, North Linden, Hungarian Village, Bexley, and North Hilltop

[Jake Rhodes]

Quote from @Amanda Davi:

Hi guys! Looking for a good market for multifamily. Currently we have invested heavily in Indiana but would like to expand. Looking for more of class A/B areas with lots of room for rent growth potential and appreciation. Where is everyone investing right now?

 HI @Amanda Davi - We're in Indiana.  What areas are you investing in?

[Paul Alphonsus]

Quote from @Nicholas Ruscio:

I love multifamily properties! Great return and debt to service ratios. Feel free to send me a PM with any questions. 

I would look in the tech hubs. Cities with a strong tech industry, such as Seattle, San Francisco, and Denver, can offer consistent demand for rental properties due to well-paying jobs.

If you into Airbnb/ STR markets with a strong tourism industry, like Miami and Las Vegas, can provide short-term rental income.

Lastly cities in the southern and western United States, like Austin, Atlanta, Dallas, Phoenix, and Orlando, have experienced strong population and job growth, making them attractive for real estate investments.

 I am also interested in learning from your wealth of knowledge Nicholas, can I also send a PM with questions? By the way I am mainly interested in non-commercial multifamily properties and I am just starting out as an investor

[Nicholas Ruscio]

@Paul Alphonsus

Here anytime you would like to chat please feel free to send me a PM! 

[Ali Nichols]

Always like the combination of mid-size city in the midwest with major universities. I.e.) Madison, Columbus, Cincy, Ann Arbor, Iowa City, etc.

[Robert Ellis]

Quote from @Ali Nichols:

Always like the combination of mid-size city in the midwest with major universities. I.e.) Madison, Columbus, Cincy, Ann Arbor, Iowa City, etc.

 I think calling Iowa City and Ann Arbor Michigan mid sized cities in the midwest with major universities is a stretch. I would recommend you do a deep dive into the economics between a place like Columbus and Ann Arbor. Ann Arbor largest employer is UM, columbus has 20+ employers of the same size. Population growth is much different, size of populations is much different, number of housing units is much different, size and scale of metropolitans is much different. Iowa city just a simple google search has 75,000 people. The city's largest employer is the University of Iowa. Columbus is also the state capital with very strong political influences, major convention center, strong infill development. I think your advice is a little misleading. Columbus as a city itself is approx 1 million and the 11 county metro area is larger than 2 million.

[Michael Smythe]

Check out Metro Detroit.

If the current UAW strike drags on and starts affecting rent payments, it may drive some investors to the brink and force them to liquidate.

[Michael Blank]

We strategically focus our multifamily investments in the Southeast region of the US for two key reasons:

Lower Costs - Properties are less expensive to acquire in the Southeast than in other parts of the country. Simply put, we can buy more NOI and rent for our dollar invested here versus other regions. This allows us to maximize returns.

Strong Growth - The Southeast, especially cities like Huntsville, Atlanta, and throughout the Carolinas, are experiencing rapid population and job growth. Huntsville for example has more STEM and tech jobs per capita than anywhere in the US. Major employers are flocking to these markets, bringing new residents and renters. This fuels the demand for multifamily housing.

Concentrating investments in one market allows you to scale faster, reduce costs, build relationships with brokers and acquire off-market deals.

[Brian Piechocki]

Quote from @Michael Blank:

We strategically focus our multifamily investments in the Southeast region of the US for two key reasons:

Lower Costs - Properties are less expensive to acquire in the Southeast than in other parts of the country. Simply put, we can buy more NOI and rent for our dollar invested here versus other regions. This allows us to maximize returns.

Strong Growth - The Southeast, especially cities like Huntsville, Atlanta, and throughout the Carolinas, are experiencing rapid population and job growth. Huntsville for example has more STEM and tech jobs per capita than anywhere in the US. Major employers are flocking to these markets, bringing new residents and renters. This fuels the demand for multifamily housing.

Concentrating investments in one market allows you to scale faster, reduce costs, build relationships with brokers and acquire off-market deals.

Michael - which neighborhoods in Huntsville do you like the most? 

[Dan Rowley]

South Carolina - experiencing rapid in migration and strong economic growth.  PM if you'd like more specifics.

[Andrea Lopez]

Jersey City, NJ! Expensive to get into but you'll have astounding appreciation.