I am interested in peoples opinion about markets around the country where you can still find good cash flowing apartment buildings...With cap rates as compressed as they are now, its getting harder and harder for a project to cash flow.
I would love to hear peoples opinion on where the good stable cash flow marks are these days.....I am talking about markets with a enough people in them to facilitate being able to find a good property manager and also a market big enough to have enough of a population base to supply a supply of tenants to keep it occupied. Also, no war zones or area with poor economies....
I appreciate anyone who chines in with a market they like....thanks everyone in advance for the input.
For cash flow:
Memphis - also has one of the highest rates of millennials moving in. Midtown area is solid.
I like the South east for growth - NC, SC, GA and decent cash flow
@Jeff Banky , I'm finding cash flowing deals in Texas--specifically San Antonio and pockets in DFW. And all the major metros in Texas have the stable markers of growth.
We have a 192-unit in San Antonio under contract that has strong cash flow from Day 1.
@Jeff Banky I would agree with @Todd Dexheimer on the markets he listed. I would encourage you to also explore surrounding secondary and tertiary markets to those major cities. You may find unique economies with stable growth and good employment prospects.
Do be careful in Memphis though, you really need to know the area, or you may fall into a value trap.
What are your thought on Indianapolis?
@Jeff Banky Indianapolis is good, but competitive.
@Jeff Banky - I've been doing some research on markets and Indianapolis seemed strong. It's had strong employment growth over the past year and the unemployment rate is under 3%. Vacancy is hovering around 5% and rent growth has been higher than 5.5% the past year. I've haven't dug in much more than that but I think it's worth exploring.
How do you guys feel about Baltimore, Philly, and Northern NJ?
you are right...indy is good but many people are working it...
@Michael Dang , the class B and C didn't sour when the O&G market dropped like an anchor. Now that the supply is tightened it should do much better. The problem will still be like before... finding the deals.
@Account Closed , I live and work in Baltimore city and buy a lot of properties in the city, typical deal is your all in for 80K on a fully rehabbed property which is worth 100K ARV, taxes are from 1k-2k a year, and your getting 1250-1400 a month for a 3bd/1 bath rental from a voucher program. If you don't live in Baltimore City, you need an on the ground person to run your investments who knows the city well, its a block by block city, and you can easily lose all your money if you don't invest right. Most of the houses I buy were houses from failed investors.
@Andrew Campbell Would like to know more about the San Antonio area, if you would like to discuss more about it.