Top Multifamily Markets in 2021 and Beyond

Multi-Family and Apartment Investing
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Top Multifamily Markets in 2021 and Beyond

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

I hear so many people asking what the best markets to invest in are. First, my answer is look in your own backyard to make sure that is not a good option. If you say, "thanks, but no thanks," to your home market, then you need to dig in:

1. Job creation, 2. Increase in population and future expected growth, 3. Building proposed (permits pulled), 4. Government planning 5. Affordability 6. Absorption rate and vacancy rate. 7. Rent affordability 8. Landlord friendly. One of the other major factors that I look at, is if there is opportunity to buy value add properties, meaning buildings are being sold in the asset class and size that I desire and there are building being sold at a discount due to a problem needing to be solved.

With that said here is my top 11: 

1. Tampa Bay, Florida

2. Jacksonville, Florida

3. Phoenix, Arizona

4. Raleigh, North Carolina

5. Atlanta, Georgia

6. Savannah, Georgia

7. Cincinnati, Ohio

8. Des Moines, Iowa

9. Memphis, Tennessee

10. Huntsville, Alabama

11. San Antonio, Texas

To see my full thoughts check out the articles: 

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

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Holly Barrett
Real Estate Agent · Dawsonville, GA · Member since 2017 · 206 posts · 144 votes
5y

I invest out of state and self manage remotely. When I had a rental 15 min from my house I physically went there twice a year approx. I figured it might as well be in another state as I could have outsourced those visits to someone else. #s are so much better where we invested than where we reside. I really don’t see a big difference. I use cozy and other tools to vet tenants. I have a trusted handyman show the properties and do walk throughs. I’m not saying it’s not without challenges. The renovation we have been working on has been especially challenging to do from a distance, but it has been a great learning experience and I’m confident my procedure will be tightened up the next time. There are markets out there with very little investor competition, that sounds like opportunity to me! Love those emerging markets.

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  • Todd Dexheimer
    OP
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Bonny Drago:

    @Todd Dexheimer I live in California outside of LA , nothing around here?? I am a newbie and afraid to go out of state

     Make some good connections with people that live in different areas. Attend virtual and live conferences and look for and meet like-minded people. 

    I've heard good things about Riverside, CA. I haven't done research on that market, but I see it pop up on a lot of lists. Possibly worth checking out.

    0Reply
  • Todd Dexheimer
    OP
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Selina Hillenmayer:

    @Todd Dexheimer. You mentioned having a good property management team as a must have.  I agree!  Do you invest in Huntsville and know of any that manage larger properties...upwards of 50+ units.

    Multi-South Property management and Elmington Property Management are your best options.  

    0Reply
  • Bonny Drago
    Rental Property Investor · Thousand Oaks, CA · Member since 2019 · 18 posts · 5 votes
    5y

    @Todd Dexheimer thank you !

    0Reply
  • Tyler Hungerford
    Real Estate Agent · Riverside, CA · Member since 2017 · 204 posts · 105 votes
    5y

    Hi Bonny, Riverside and San Bernardino counties have a lot of great options for you depending on your budget. I've been living in the area my whole life and do my own investing in the area. Would be happy to offer any advice or help to you. 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y
    Originally posted by @Bonny Drago:

    @Todd Dexheimer I live in California outside of LA , nothing around here?? I am a newbie and afraid to go out of state

     Education and Investor-Agent is the state is all you need. Jump in and you will be glad your did.

    Let's connect!

    [email protected]832-776-9582Podcast Guest on Show #469
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  • Bonny Drago
    Rental Property Investor · Thousand Oaks, CA · Member since 2019 · 18 posts · 5 votes
    5y

    @Tyler Hungerford thank you ! I live in Thousand Oaks in Ventura county but would love to learn more about those counties

    0Reply
  • Brianne Leichliter
    Rental Property Investor · Cincinnati, OH · Member since 2019 · 59 posts · 77 votes
    5y

    Thanks @Todd Dexheimer for your recommendations.

    Cincinnati is the winner for me!  I moved from PA to eat, sleep, and breathe the city here.  So much opportunity!  I started off finding my agent on BP almost two years ago and now we're partnering.  It's been great!  Looking forward to hearing more from you.

    1Reply
  • Selina Hillenmayer
    Rental Property Investor · NJ · Member since 2019 · 43 posts · 14 votes
    5y

    @Todd Dexheimer.   Thanks for the info.  I'll check them out.

    0Reply
  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
    5y
    Originally posted by @Will Kaufmann:

    The Raleigh market is relatively thin as far as available multi-family properties that are not larger apartment buildings. I recall seeing something like 1-2% of our net inventory is mutli versus single and that's incredibly low. We hardly see anything under 10 units hit the market and when it does, it sells very quickly.

    Great point!

    At what number of units would you say the net inventory begins increasing in the Raleigh market? 

    Would love to hear your thoughts on this!

    Thanks!

    0Reply
  • Will Kaufmann
    Flipper/Rehabber · Raleigh, NC · Member since 2018 · 76 posts · 67 votes
    5y
    Originally posted by @Jeffrey Donis:
    Originally posted by @Will Kaufmann:

    The Raleigh market is relatively thin as far as available multi-family properties that are not larger apartment buildings. I recall seeing something like 1-2% of our net inventory is mutli versus single and that's incredibly low. We hardly see anything under 10 units hit the market and when it does, it sells very quickly.

    Great point!

    At what number of units would you say the net inventory begins increasing in the Raleigh market? 

    Would love to hear your thoughts on this!

    Thanks!

    I wish I had more insight on this but I am not as involved in that area of the market so I do not track it. The only anecdotal information I can offer is that it seems there is a $20m+ deal every week announced in the TBJ and the going rate is somewhere around $150k/unit so there is probably some decent availability for 100+ unit buildings. Mind you, the acquiring groups are usually out of larger markets (New York, Boston, International, etc.) where their local returns are not acceptable. 

    1Reply
  • Bobby Larsen
    Investor · Newport Beach, CA · Member since 2019 · 190 posts · 176 votes
    5y

    @Todd Dexheimer any property manager recommendations for a 50 unit property in Tampa? On- or off-site preferably with an in-house maintenance team.

    0Reply
  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
    5y
    Originally posted by @Will Kaufmann:
    Originally posted by @Jeffrey Donis:
    Originally posted by @Will Kaufmann:

    The Raleigh market is relatively thin as far as available multi-family properties that are not larger apartment buildings. I recall seeing something like 1-2% of our net inventory is mutli versus single and that's incredibly low. We hardly see anything under 10 units hit the market and when it does, it sells very quickly.

    Great point!

    At what number of units would you say the net inventory begins increasing in the Raleigh market? 

    Would love to hear your thoughts on this!

    Thanks!

    I wish I had more insight on this but I am not as involved in that area of the market so I do not track it. The only anecdotal information I can offer is that it seems there is a $20m+ deal every week announced in the TBJ and the going rate is somewhere around $150k/unit so there is probably some decent availability for 100+ unit buildings. Mind you, the acquiring groups are usually out of larger markets (New York, Boston, International, etc.) where their local returns are not acceptable. 

    Interesting, thanks for the response!

    Looking forward to staying connected!

    0Reply
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