Interested in investing in multi-family

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Todd Dexheimer
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
9y

St Louis, Louisville, okc, Detroit, Milwaukee also make the list to add on to @John Casmon. You can look in Texas and the Carolinas for good opportunities as well. There is a podcast out there called Target Market Insights that does a great job at describing markets and what to look for. Also a lot of other posts on BP talking about this

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  • Jennifer BeadlesPro Member
    Rental Property Investor · Phoenix, AZ · Member since 2016 · 424 posts · 261 votes
    9y

    @George Cal Nashville and Indy are my personal favorites.

    I bought a duplex in Indy last December for $155k, did a light rehab and it rents for $2,235

    Last week I was looking at deal from my agent in Nashville, it was a turn key duplex for $250k with rents of $3000 with room to get to $3200

    4Reply
  • Devan Mcclish
    Investor · Nashville, TN · Member since 2015 · 688 posts · 607 votes
    9y

    @Jennifer Beadles let me know if you need someone to manage your nashville rentals!

    2Reply
  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    I would focus on the midwest in general. To name a few, look at Cincinnati, Cleveland, Indianapolis, Memphis, and Kansas City, 

    4Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    St Louis, Louisville, okc, Detroit, Milwaukee also make the list to add on to @John Casmon. You can look in Texas and the Carolinas for good opportunities as well. There is a podcast out there called Target Market Insights that does a great job at describing markets and what to look for. Also a lot of other posts on BP talking about this

    6Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    Milwaukee is a wonderful place for income properties. We are closing next week on a brick 4-unit (2-bd units) in the coveted Wauwatosa, WI  neighborhood at $167k.  If you decide to pursue Milwaukee, I'd love to connect. 

    Captain Save-A-Home LLC
    WebsiteView Page
    3Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    9y

    @George Cal The Midwest is typically most affordable. Personally, I like Indianapolis and Kansas City, however, I would choose Kansas City for multi family over Indy.

    1Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @George Cal Come on down to the Mid-West and make some Milwaukee Bucks!!!!

    3Reply
  • Alim Abrahim
    Specialist · Orlando, FL · Member since 2016 · 48 posts · 16 votes
    9y

    Hi George - My niche is working with folks from Cali, NY, Toronto, Israel, etc - I sell Florida multifamily properties.  Often, we do 1031 exchanges with properties over there, to buy higher cash-flow properties here in Florida.  The midwest does have lower price-point options, we are not as 'cheap' but the influx of people moving to Florida, general demand for rental housing, and very limited new construction multifamily properties (in the $800-1200mo rental market) make this a solid choice.  Let me know the general amount of resources that you want to put to work for you - I have the team to get all your questions answered.... further, I approach everything with a very educational approach, we have lots of great opportunities, but I love to find out if me and my market are a good fit for you, before wasting your time.  Thanks!

    4Reply
  • Ian Martin
    Developer · Boston, MA · Member since 2016 · 76 posts · 31 votes
    9y

    @Mike D'Arrigo, how come you say you would choose Kansas City over Indy for multi family? I'm looking to build my build and hold portfolio and both of these places are on my list to travel to and check out first hand. Taking off for Kansas City tomorrow morning in fact.

    1Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    9y
    Go where the jobs are. Texas, Atlanta, Phoenix to name a few.
    3Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    Midwest or Northeast. Midwest markets like Cleveland, toledo, Detroit, Flint, KC, Memphis, St Louis, Cincinnati, etc. NE markets like Albany, Buffalo, Hartford, etc. 

    I would suggest reading the article that I wrote as well on BP: https://www.biggerpockets.com/blogs/10145/66160-how-to-identify-emerging-markets

    3Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    9y

    @Ian Martin Most of the multi families in Indianapolis are in old, rough areas of the city. There are some exceptions of course, but our experience with MF in Indy has not been good for the most part which is why we've only done 2 multi families there in the last 4 years. Those happened to be in decent areas but those are few and far between. Indianapolis is a great cash flow market for SFR, but for multi family, I much prefer Kansas City.

    2Reply
  • Account Closed
    Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
    9y

    @George Cal 

    I am looking to get into the Milwaukee market in the next few months myself. The numbers are great.

    All the best to you.

    Jorge

    1Reply
  • Guy Azta
    Investor · Los Angeles, CA · Member since 2016 · 89 posts · 73 votes
    9y

    George, that's a pretty broad question. May be worth separating "most affordable" from "return and income". Affordable doesn't always and necessarily equates with return and income. This is too complicated of a matter to address on a quick forum. Seems like different people here have successes with several different markets. From my experience, a few years ago markets like Nevada, Oregon, Florida, Texas etc were fantastic. Now they are not as affordable. Then you have Midwest markets that are more affordable, meaning they have higher cap rates, but there may be different reasons for that, which will affect the actual return. For example, some markets have higher cap rates, but have negative migration or very little growth. Or the demographics are not as good, with higher poverty and unemployment. Demographic and jobs growth are very critical in long term real estate investments. You also want to factor possible appreciation. If you buy in CA for example, the cap rates are extremely low, however, the appreciation potential is far higher. If you buy in OH, the cap rates are lower, but appreciation would be lower as well.

    What I sometimes do is conduct a statewide search on Loopnet.com. You can enter the parameters you are looking at, and then go state by state and see what you find. If you like what you see - nice building at a reasonable size for the # of units, at a reasonable cap rate and price, and at an area that is relatively close to an employment area, that would be a good place to look. If you see a few of those, even better.  Regularly do search for "fastest growing cities / towns / suburbs" "best towns for retirement / families / jobs / millennials / baby boomers" "most affordable cities" etc and see which cities come across the list which are both affordable to you and attractive. From there you can start zoning in and talk to some local pros and BP members.

    But remember - high cap rate can come at a high price and does not guarantee high returns. Also, pay attention to "fire sale" situations. There are waterfront areas in Florida for example that are selling at very attractive prices. We are going through massive climate change and the last thing you want is to be stuck with a property nobody wants 5-10 years from now

    4Reply
  • Ham Merritt
    Co-Owner · New Berlin, WI · Member since 2017 · 224 posts · 71 votes
    9y

    @George Cal there is some pretty consistent information here in this thread. Best of luck to you however you decide to move forward. 

    1Reply
  • Michael Badin
    Rental Property Investor · Apex, NC · Member since 2015 · 197 posts · 102 votes
    9y

    @Todd Dexheimer

    I just read the article you mentioned, How to Identify Emerging Markets.  GREAT read!  Thanks!

    2Reply
  • Shamayne B.
    Dickinson, ND · Member since 2017 · 5 posts · 4 votes
    9y

    @Rebecca Knox Do you guys only service the Milwaukee area or surrounding Wisconsin areas as well? I'm a new investor looking for Passive Income through multifamily rentals.

    1Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Shamayne B. Mikwaukee is where the cash flow is. So that’s where Invest. All the best to you. 

    2Reply
  • Shamayne B.
    Dickinson, ND · Member since 2017 · 5 posts · 4 votes
    9y

    Thanks @Shawn Ackerman

    2Reply
  • George Cal
    OP
    Flipper · San Gabriel, CA · Member since 2017 · 2 posts · 5 votes
    9y

    Good morning, first and foremost i want to thank everyone for replying you are all great.  Milwaukee is mentioned a lot , but  what areas.  

    1Reply
  • Chad Nagel
    Rental Property Investor · Fond Du Lac, WI · Member since 2016 · 215 posts · 136 votes
    9y
    Originally posted by @Guy Azta:

    George, that's a pretty broad question. May be worth separating "most affordable" from "return and income". Affordable doesn't always and necessarily equates with return and income. This is too complicated of a matter to address on a quick forum. Seems like different people here have successes with several different markets. From my experience, a few years ago markets like Nevada, Oregon, Florida, Texas etc were fantastic. Now they are not as affordable. Then you have Midwest markets that are more affordable, meaning they have higher cap rates, but there may be different reasons for that, which will affect the actual return. For example, some markets have higher cap rates, but have negative migration or very little growth. Or the demographics are not as good, with higher poverty and unemployment. Demographic and jobs growth are very critical in long term real estate investments. You also want to factor possible appreciation. If you buy in CA for example, the cap rates are extremely low, however, the appreciation potential is far higher. If you buy in OH, the cap rates are lower, but appreciation would be lower as well.

    What I sometimes do is conduct a statewide search on Loopnet.com. You can enter the parameters you are looking at, and then go state by state and see what you find. If you like what you see - nice building at a reasonable size for the # of units, at a reasonable cap rate and price, and at an area that is relatively close to an employment area, that would be a good place to look. If you see a few of those, even better.  Regularly do search for "fastest growing cities / towns / suburbs" "best towns for retirement / families / jobs / millennials / baby boomers" "most affordable cities" etc and see which cities come across the list which are both affordable to you and attractive. From there you can start zoning in and talk to some local pros and BP members.

    But remember - high cap rate can come at a high price and does not guarantee high returns. Also, pay attention to "fire sale" situations. There are waterfront areas in Florida for example that are selling at very attractive prices. We are going through massive climate change and the last thing you want is to be stuck with a property nobody wants 5-10 years from now

    Where are these attractive waterfront prices you speak of in FL?

    1Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Shamayne B., we market for SFR, Duplex and multi-family/apt deals in Waukesha, Racine/Kenosha, Ozaukee, Sheboygan and Milwaukee counties. Occasionally we get other deals in different regions of WI from our BBB ad.

    We are always searching in all of those counties I indicated above but our main focus for apartments currently has been the greater Milwaukee area.  

    Captain Save-A-Home LLC
    WebsiteView Page
    2Reply
  • Sourabh Bora
    Bronx, NY · Member since 2016 · 58 posts · 60 votes
    8y

    Here are a few resources that might help:

    1) "The Data is In: These Are the Best Cities for Rental Investing"

    https://www.biggerpockets.com/renewsblog/cities-re...

    2) I put them all in a map

    https://goo.gl/28ZqKQ

    Copy short URL
    1Reply
  • Steve Kontos
    Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes
    8y

    @George Cal

    The problem is you asked a very broad question.  It all depends on what you are looking for and what size investment.  

    0Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    8y

    I wrote about this recently. Check out the post:

    https://www.biggerpockets.com/blogs/10145/68178-to...

    0Reply
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