What state has the best bang for your $ when buying multi-family?

What state has the best bang for your $ when buying multi-family?

Investor · Sicklerville · Member since 2020 · 5 posts · 3 votes

Hey All,

I am looking to purchase a multi-family in 2021 and I live in NJ so everything is very pricey up here. So I want to start looking on a national level. Which states do you think I’ll get the most bang for my buck ? I want as many units as I can get for $1,000,000 MAX. Look forward to the discussion :)

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Rental Property Investor · Los Angeles · Member since 2019 · 146 posts · 101 votes
6y

I invest in Kansas City and Oklahoma City and so far they have been good to me.

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  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    6y

    Nicole,

    If your talking about a commercial multi-family 5+ units I would say stick with NJ.  Unless you are paying 50%-100% cash the lender will want you to have landlord seasoning.  Along with majority require that the property be within your geographical area to reduce the manageability risk.  Some allow for a management company to supersede that requirement but again usually with a higher DP.  If your looking for a 2-4 unit than it really doesn't matter where you but aside from rent schedule and rental market demand.

    Have you been pre-approved by a bank/lender yet to see what your options are as far as terms.  

  • Rental Property Investor · Los Angeles · Member since 2019 · 146 posts · 101 votes
    6y

    I invest in Kansas City and Oklahoma City and so far they have been good to me.

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    6y

    Most Midwest markets are awesome. KC is growing crazy but good returns too. Happy to chat 

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Carolinas are still good for investment in certain parts. If you mean $1,000,000 in capital vs $1,000,000 levered that'll make a big difference in terms of what you look for. I would caution against going for purely the most units you can get, that could be a recipe for buying something blighted in a less desirable part of town.

  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    6y
    Originally posted by @Jonathan Barr:

    I invest in Kansas City and Oklahoma City and so far they have been good to me.

     What size multifamily are you buying?

  • Rental Property Investor · Los Angeles · Member since 2019 · 146 posts · 101 votes
    6y

    @Joe S.

    50+ units to hundred plus.

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