Investor · Ottawa, Ontario · Member since 2017 · 35 posts · 16 votes
Looking for markets with: 5+ unit buildings Cap rates of 10% or higher Low vacancy Low taxes Good Property Management (several companies to chose from) Landlord Friendly
Looking to invest long distance from Canada- we will consider any area as all purchases will be considered long distance investing and its all about the numbers. Hoping we can narrow down which states/markets to start researching more. Right now we are a bit overwhelmed with where to start.
@Michala Vander Ploeg, if you are looking for 10%+ cap rates, you would be looking for the worst multifamily markets. The reason cap rates would be in the 10% range is because the market is horrible and no one wants to buy there. The best markets have a lot of buyers, and that activity forces cap rates down.
In response to your question about where to find the best markets: You want to buy in places where people are moving TO, and avoid markets where people are moving FROM. Las Vegas, Phoenix, Tucson, Boise, Salt Lake City, DFW, Austin, Atlanta, Tampa, Raleigh/Cary and several other southeastern US markets. There are other good markets where people are moving to, but have had too much new construction, which is placing a damper on rent growth. Great markets if you're willing to wait, or maybe buy in a couple of years: Nashville, Orlando, Jacksonville are just a couple of examples.
It's not just a matter of favoring but what your team is prepared to handle. We do not compete with major corporate firms. Our niche is small-medium MF market. We further specialize by location and type of building.