Best cities to buy multifamily building for buy-and-hold purpose.

[Syed Naqvi]

I am planning to buy a multifamily building/complex of around 4 to 25 units with in next few months. So far I have a few Single family and townhouses and have a good experience of managing them. Any advice on BEST CITIES for buying multifamily building for buy and hold purpose?

[Tj Hines]

@Syed Naqvibwe love the southeastern region of the United States. Florida, Georgia, Tennessee, Carolinas, Texas

[Stuart Humphreys]

@Syed Naqvi Congratultions man! I just made the leap from single family homes into multifamily, and Ive been researching this stuff for months now. Here are my top takeaways:

1. Class A Core Multifamily cap rates are too compressed, you will have to look at Class B and C properties to get a meaningful ROI above your debt costs

2. Look at secondary and tertiary markets in the Sunbelt as there is less competition and more opportunity with less perfectly priced assets

3. "BEST CITIES" is going to be relative to you in a lot of ways; do you want to be hands on or outsource management? Hard to rehab a deal if its a plane ride away. If you just want the best cities and dont plan on being there to oversee, I would look at medium sized cities with low property tax rates and high job growth. TAMPA, ORLANDO, CHARLOTTE, TEMPE, PHOENIX, SALT LAKE CITY, SAN ANTONIO, etc. You have to think about where the opportunity is and where the big players haven't gone yet, while still being big enough to satisfy a bank's underwriting needs. Hard to pull CoStar reports on a town with 5,000 people

Hope this helps man, feel free to DM me anytime 

Here's my IG: @dshumphreys 

[Evan Brookman]

All the information are useful! 

[Imran Ahmed]

well, any new development someone wanna chime in? I am trying to get my first multi (aiming 4plex) for cash flow and where I will be staying in one unit rent rest and after a fair amount of research thinking of JAX, FL .I think I can get something little cheaper in Charlotte, Columbia, and TN, AL but want a property in FL anyway so thought why not start from here. Besides all that, Cleveland still looks very great tho ..any thoughts ? I am moving from Boston area..so any thoughts ? I would be happy to consider other places as I have some freedom to move at this point

[Thomas Dougherty]

Also looking for this topic. Great info in the replies! 

[Aram L.]

Read thru this thread... very interesting stuff, folks. 

Any other ppl want to chime in?

[Christopher Petrillo]

Hi @Syed Naqvi!

I honestly think Indianapolis is a great market to invest in.