First Multifamily Property - Where would you buy?

13 Replies

Hi all! I am looking to purchase a 2-4 unit multifamily property. I am from CA and just moved to CO but both of those areas are super expensive to get started in. I am wording what cities have a relatively low entry cost ($100K-250K) but yield good rental returns. I'm not super worried about appreciation (I know for example Cleavland OH has pretty cheap houses, relatively high rents but not much appreciation). I am going to start a direct mail marketing campaign/ cold calling in some areas in an effort to locate an off-market property, I just need ideas on some cities I should target. Any ideas? Also, any general advice for a newbie who only has 1 door is welcomed! :-) 

Originally posted by @Jackson Babcock :

@Michelle Jones

Are you planning on self managing this property or hiring third party management? If self managing I would be looking for something within close driving distance for when problems arise you can take care of them easier.  

Hiring a property manager 100%

Michelle, you might try Southern Impression Homes.  They build build-to-suit homes and small multifamily (to sixplexes) in Florida and Georgia for investors and will manage them for you.  I don't have a relationship with them, but they seem to be a good firm in solid, growing markets.

@Michelle Jones , generally you are going to be in lower end neighborhoods in secondary markets or tertiary markets.  Clearly, the closer to bigger cities, the easier time you will have with both rental demand and access to managers.  

Particularly in the small multifamily space, I don't put much credence to the "must be in the best cities".  At the end of the day Cleveland, Chicago, Cincinnati, Dayton, OH, Indy are not going anywhere and your exit is going to be to local investor.  

Hey Michelle!

I am from NC so my answer is biased- full disclosure- however with all of the migration from up north the southeast region continues to grow and flourish. 

Originally posted by @Michelle Jones :

Hi all! I am looking to purchase a 2-4 unit multifamily property. I am from CA and just moved to CO but both of those areas are super expensive to get started in. I am wording what cities have a relatively low entry cost ($100K-250K) but yield good rental returns. I'm not super worried about appreciation (I know for example Cleavland OH has pretty cheap houses, relatively high rents but not much appreciation). I am going to start a direct mail marketing campaign/ cold calling in some areas in an effort to locate an off-market property, I just need ideas on some cities I should target. Any ideas? Also, any general advice for a newbie who only has 1 door is welcomed! :-) 

 I would check out Columbus, Ohio