what cities to invest in multifamilly

Multi-Family and Apartment Investing
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what cities to invest in multifamilly

Humphrey Piccus
Washington, DC · Member since 2015 · 11 posts · 1 vote

Looking to get some multifamily. Many cities I've visited seem over-priced. Lots of investors from out of town and new-in-town have driven up the prices the few years. Do any of you investors see any cities that show potential? Any places that are undervalued? Do you have good reason to believe the city has a lot of upside potential? 

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y

I think the best place for anyone to invest is within an hour of where they live. So in your case that would stretch the radius from DC up to Frederick and Baltimore to the north and probably Fredericksburg to the south.

DC does have a very low supply of multifamily homes...but there are some to be found in Trinidad, Old City, Brentwood, etc.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    I think the best place for anyone to invest is within an hour of where they live. So in your case that would stretch the radius from DC up to Frederick and Baltimore to the north and probably Fredericksburg to the south.

    DC does have a very low supply of multifamily homes...but there are some to be found in Trinidad, Old City, Brentwood, etc.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
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  • Donald Capwell
    Rental Property Investor · Mesa, AZ · Member since 2015 · 149 posts · 52 votes
    10y

    hi, @Humphrey Piccus.  I am in Fredericksburg, and multi families are slim pickings here (I also have my eyes open for them).  This said, I don't have too many realtor connections, yet, to find out about the deals early... Ats not to say they don't exist, but I have inly seen one in the last few months, and although it was close to Mary Washington University, it wasn't a deal price wise...  If you are ever in the area, look me up!

    1Reply
  • Humphrey Piccus
    OP
    Washington, DC · Member since 2015 · 11 posts · 1 vote
    10y

    maybe i was not clear what i'm looking to find out. what city has good growth for demand versus supply in multifamily? where can i make some money investing in multifamily - for long term investing? Is that clear? I want to make money, not pay too much, good ROI, value investing. I will need lots of renters and need few investors driving up property prices. What city has this?

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  • Kathy Stewart
    Rental Property Investor · Dallas, TX · Member since 2015 · 243 posts · 70 votes
    10y

    I live in California and invest in Texas.  Supreme property management is key.  Dallas, Houston, Austin are all good as well as secondary, potentially less competitive markets such as Lubbock, Amarillo, Tyler.

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  • Mark Rauch
    Commercial Real Estate Broker · Tarzana, CA · Member since 2015 · 8 posts · 2 votes
    10y

    Kathy, I am in Los Angeles and thinking about going out of state.  Some of the members here have suggested 'Turnkey" companies.  Not sure that is the route I am looking for but open to it.  One person mentioned how they can be a nightmare.   I am concerned about being taken advantage of by PM companies which I have heard is a definite issue.  How did you find a PM company and Investment Broker you trust?  Has it worked out positively?  Obviously you have to trust that the person working for you has the utmost of integrity and ethics.  The last thing I would want is to be told the building needs all kinds of "phantom" required plumbing, A/C or electrical work only for them to pocket the money.

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  • Robert Rahl
    Real Estate Agent · Palm Springs, CA · Member since 2015 · 11 posts · 3 votes
    10y

    Hi Mark,

    The property management profession runs the gamut of a single guy doing it for his friends and family to professionals such as myself who is licensed and insured.  My office is in Palm Springs serving the Coachella Valley.  I will be able to help you in the future when we get an office in LA or if you decide you want to look in the Valley.  My website is www.pmi-cv.com It is here that you can look at the services provided. 

    But as you point out, trust is a big issue.  If you don't trust someone don't do business with them.  To keep the trust issue up front, we offer 24/7 portal access to your properties both from the owner and then the tenant side.  

    In regard to going out of state for investments what is your objective with that, California is a big state that offers lots of opportunity.

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  • Elia S.
    Wholesaler/Real Estate Investor/Consultant · indianapolis, IN · Member since 2009 · 265 posts · 51 votes
    10y

    @ Humphrey Piccus

    Hi an thats a Great Question If Your Interested in learning what City I would Recommend Indianapolis which has great Rentals an Low Taxes for more Information feel free to Contact me with any questions.

    0Reply
  • Jerry Padilla
    Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
    10y

    @Humphrey Piccus

    Cleveland is a great area to invest in real estate. @Account Closed can give you more info on the area if that is an area you may be interested in.

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  • Sterling WhitePro Member
    Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes
    10y
    Originally posted by @Humphrey Piccus:

    Looking to get some multifamily. Many cities I've visited seem over-priced. Lots of investors from out of town and new-in-town have driven up the prices the few years. Do any of you investors see any cities that show potential? Any places that are undervalued? Do you have good reason to believe the city has a lot of upside potential? 

    What markets have you looked in thus far?

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  • John Cohen
    Rental Property Investor · Mineola, NY · Member since 2014 · 838 posts · 212 votes
    10y

    @Humphrey Piccus There are great markets up and down the east coast. You also have to know what size product your going after. That might exclude markets because the inventory isn't there. Returns vary between people; your good value and return number might be different. What type of returns are you looking for?

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  • Jennifer Nguyen
    Orange, CA · Member since 2016 · 36 posts · 4 votes
    10y

    @Kathy Stewart, how did you choose Texas to invest in out of state? How's the multifamily market in Texas right now? Are there high vacancies in Lubbock? Thanks!!

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  • Jonathan Towell
    Investor · Lubbock, TX · Member since 2015 · 308 posts · 106 votes
    10y

    @Jennifer Nguyen

    Every year, Coldwell Banker Lubbock puts out a magazine that analyzes different CRE segments in Lubbock. I took a couple of pics showing the Apartment analysis which shows occupancy rate averages. (For some reason, the pics turned sideways after upload... I promise I know how to use a camera.)

    1Reply
  • John Claborn
    Lubbock, TX · Member since 2014 · 38 posts · 18 votes
    10y
    My business partner is Taylor Tucker with the Coldwell Banker Texas Multi-Family Group, and we discuss the apartment market in Lubbock weekly. At this point, in his opinion, it's very difficult to get a good deal on multi-family in Lubbock. It's a seller's market for the next few years he believes. That being said, he does a lot of business in other markets in Texas, so feel free to PM me, and I'll provide his contact info.
    1Reply
  • Jeff Smith
    Real Estate Investor · Lubbock, TX · Member since 2012 · 80 posts · 17 votes
    10y
    I have a wholesale property that's a 3/1 that has a apartment in the back. $79,900 ARV is $120k to $135k house is mostly already remodeled with just a few things left. Apartment needs some attention but had great rental potential. Let me know if you're interested.
    0Reply
  • Shital Thakkar
    Specialist · Dallas, TX · Member since 2010 · 511 posts · 252 votes
    10y

    @Kathy Stewart, How is secondary market success? As Primary market like Dallas/Houston/Austin are too saturated, i am looking in secondary market also. Do you have any exposure to Wichita Falls, Texarcana etc..?

    @Jonathan Towell, Great reports. is there anyway we can access these report online for different cities?

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  • Jonathan Towell
    Investor · Lubbock, TX · Member since 2015 · 308 posts · 106 votes
    10y

    @Shital Thakkar

    I'm not sure how to access that report for different cities. It just shows up like magic in my mailbox, probably due to past business I've done with Coldwell.

    0Reply
  • Melissa Nash
    Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
    10y

    Agreed with most above. Invest where you make the most, not where you live. If you have a good property management company- then they run the show for you and you can be an investor, not a landlord. There are a lot of good companies out there and hard working property managers. I have a few favorite cities right now in Alabama/Mississippi, St. Louis. Look for cities that have good rental history- typical in secondary markets. Just stay away from the major cities that the big hedge funds have already conquered and left the scraps. Those markets are too high already---- Atlanta, Dallas, LA, Phoenix, etc. You can still find good deals there, don't get me wrong--- but not easy pickings and you have to know what you are doing or be willing to search hard. 

    1Reply
  • Sandra Bean
    Cincinnati , OH · Member since 2016 · 7 posts · 4 votes
    10y

    Relocating to Cincinnati, Ohio. Can anyone point me in direction of where the good multifamily properties are located for purchase. Plan to live in it. Have looked at university areas and more high end areas for good rentals. 

    1Reply
  • Craig H.
    Cincinnati, OH · Member since 2015 · 214 posts · 107 votes
    10y
    Originally posted by @Sandra Bean:

    Relocating to Cincinnati, Ohio. Can anyone point me in direction of where the good multifamily properties are located for purchase. Plan to live in it. Have looked at university areas and more high end areas for good rentals. 

     What are you looking for in an area to live?  

    0Reply
  • Sandra Bean
    Cincinnati , OH · Member since 2016 · 7 posts · 4 votes
    10y

    Because my mom and me are both seniors I am looking for an area that has a high walk score to businesses and restaurants, low crime and not a high tax rate. I have noticed that Cincinnati has one of the highest tax rates in the country, however Hamilton County is unique. Low income areas have low rates while very desirable areas can be quite high and shot through the roof. I have checked every area in the county, read up on the history,  demographics, revitalization, regentrifrication of certain areas and  the poverty rate of the city. I have somewhat narrowed down to certain neighborhood. Once there will be looking for a second property to  buy.

    0Reply
  • Jennifer Nguyen
    Orange, CA · Member since 2016 · 36 posts · 4 votes
    10y

    @Jonathan Towell, wow, thank you so much. I appreciate it!! 

    1Reply
  • Sandra Bean
    Cincinnati , OH · Member since 2016 · 7 posts · 4 votes
    10y

    There are a lot of great buys there that make multi-family buys very alluring, however it makes me wonder why???? The download side is that rent is very low running the range of little less than $500 to start rounding off to around $1400 again based on location. Definitely not California Bay Area prices starting at for an apartment at $3700 to nearing $10,000 if you do the city. Outline areas from the city are a little less. San Francisco is the culprit with sky high rent and a lifestyle to match. Cashing out and heading east to get more bang for my buck.

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  • Adam Curry
    Real Estate Agent · Cincinnati, OH · Member since 2015 · 156 posts · 42 votes
    10y
    Originally posted by @Sandra Bean:

    Relocating to Cincinnati, Ohio. Can anyone point me in direction of where the good multifamily properties are located for purchase. Plan to live in it. Have looked at university areas and more high end areas for good rentals. 

     Sandra, feel free to reach out to me regarding where to buy multi families. This is where I focus a large majority of my business and I can give you some good direction. Thanks, 

    0Reply
  • Catherine German
    Realtor · Sequim WA & Port Angeles, WA · Member since 2016 · 164 posts · 78 votes
    10y

    I like Tacoma, Lakewood, Puyallup Washington area for Multi Family. We have a large military base here. Not sure if you have looked into this market.

    0Reply
  • Sandra Bean
    Cincinnati , OH · Member since 2016 · 7 posts · 4 votes
    10y

    Thanks Adam. Most definitely will look you up.

    0Reply
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