Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Location help for next property
I am considering purchasing a multifamily property, perhaps a duplex or more. I currently live in Orlando and Orlando does not have a very large pool for multifamily properties. Now I am considering other options such as out of state or other cities in Florida. So I would appreciate any suggestions if anyone knows where I should look or places I should consider?
@Nancy Luxama you live in one of the best markets in the United States! Population growth is great, great jobs and low unemployment. I find it hard to think the deal pool is limited. Make friends with top brokers who can feed you some off market deals. Knock on some doors. Do what others are not doing.
Start by searching local economies and local people who will assist you. A great deal isn't a great deal if you can't find good people to help you find, manage and maintain your asset(s).
Look for solid growth economies, property values that haven't doubled (or worse) in last 2 years, demographics, population increase/decrease and check the job boards to see how many openings local companies are advertising (one of my favorites).
After that, it's all about building a team.
Detroit and Asheville NC used to be good markets, but they're likely similar to Orlando, being too pricey and hard to find deals. I work the Knoxville TN market and has a fairly decent MFR inventory but depends on what you're looking for and price points. Hope that helps.
@Nancy Luxama you should invest where you know the market and have a network. Florida has solid economic indicators in Orlando and Jacksonville. You might want to spend one hour per day networking with brokers in the area to help you find a great property (they are out there).
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
- 4,396
- Votes |
- 4,756
- Posts
#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
Originally posted by @Nancy Luxama:I am considering purchasing a multifamily property, perhaps a duplex or more. I currently live in Orlando and Orlando does not have a very large pool for multifamily properties. Now I am considering other options such as out of state or other cities in Florida. So I would appreciate any suggestions if anyone knows where I should look or places I should consider?
You are in one of the top most sought after markets in the country so competition is fierce right now but you can still find opportunities.
Here are some of the the best ways to find off market commercial and multifamily properties is to compile lists from city and county websites if available or through a paid service like List source, Reonomy and CoStar or you can use free resources like Loopnet, CREXI, Ten-X commercial, Craigslist, tax database, general networking, brokers, property managers, title companies, environmental consultants, building inspection companies, appraisers, landscapers and other companies that service commercial and multifamily properties and driving for dollars. The key is consistent action and how you approach the owners and then the follow up. You need to be talking to hundreds of sellers these days to develop good deal flow.
You can send letters and email but cold calling is by far the most effective method but you really need to know what you’re doing, how to open the conversation, what questions to ask and more importantly when to listen and not talk. Most importantly you need to convey confidence and assurance you are a player and not just wasting their time. Remember you are building relationships with the owners.
Follow up is crucial and where 90% of investors and sales people fall short. You have to consistently follow up in a meaningful way and you will get deals.
@Nancy Luxama, I assure you that 1% (or slightly better) deals can be had on the fringes of Orlando Metro, within a 1-hr drive.
Thank you guys so much. This was definitely helpful.
@Nancy Luxama OKC is my bread and butter. You CAN get multifamily here, but you have to move quickly when it becomes available. That said I've seen 5 or so in the last couple months at 7% cap rates. Single family here normally yields better returns, but if multifamily is the most important factor, you can make it work. You might just wait for some time! Price point is likely a little more approachable than Orlando, so that might be a perk worth waiting on!
We also have a slow but steady population growth. We're very steady through recession and taxes are at only 1% of purchase price! Not too shabby (: