What are some top Multifamily Markets

Question

Hey Everyone, Got my financing locked up and currently looking for some good value add multifamily opportunities to either BRRRR with hard money or if they are turnkey then use a conventional loan as long as the the numbers make sense.

Having said that are there any markets you guys would recommend looking further into as far as multifamily affordability and return potential?

Spencer Gray · Answer

If you are in Jacksonville, I would look at markets in FL as well as GA. No reason to go across the country when you're already smack dab in the middle of some of the biggest migratory patterns in the US.

Jesse Thurston · Answer

I believe you can find deals that work in any market. Just have to determine the lowest cap rate you're willing to go. Small multi family is tough in the Twin cities market right now. The commercial 5+ you can still find plenty of value add and turn key properties that you can make the numbers work.

Jonathan Oh · Answer

@William Whitley There are some great opportunities in Kansas City. Feel free to dm me if you're looking for 4-unit below in this market. But seeing that you're in Jacksonville, I would imagine that there are some great BRRRR opportunities there as well. Why not start local?

Jeffrey Donis · Answer

Southeast + Midwest!

Rick Martin · Answer

@William Whitley I would start in your own backyard. If you have a hard time there branch out into other Florida markets or South Carolina (although the tax reassessments can be tough there). Determine the average rents ÷ it by the price per door to make sure it cash flows well. If it does take a deeper dive. But, yes, if you know Jacksonville well, take advantage of that.

Cameron Braig · Answer

@William Whitley

Congratulations on locking up financing. The Sunbelt/Southeast continue to provide great opportunities for multi-family investment. Georgia, North Carolina and Florida have seen growth in areas like population, employment and rent. Metros like Atlanta, Charlotte and Jacksonville continue to grow and the pandemic seemed to accelerate migration from northern urban metros to growing southeast metros. Additionally, as these metros have continued to grow surrounding areas have continued to see increased investment and development Northern Atlanta suburbs for example). Value-add particularly has done well in this geo focused area and with the relocation of companies, talent and investment economic data shows the growth has room to run.

Jonathan Greene · Answer

What areas do you have a competitive advantage in or boots on the ground already? There are hundreds of good multi markets, if not almost all of them right now, so what you want to do is find out where you can get better deals and earn more money. Where have you lived, gone to school, and where does your family and best friends live (built-in boots and cheaper PM)? If a market for multis is already identified as hot, you are giving up appreciation for a shiny toy. Dig deeper and find the up and coming ones that you know something about.

William Whitley · Answer

@Jonathan Greene Thank you for the insight I’ll definitely do more research on finding up and coming areas.

I have some family in Texas but i know their real estate market is already booming. I live and work for an investment company in Jax but also looking to expand my portfolio out of state.

Trying to find those hidden gem cities that I haven’t even considered yet outside those highly sought after markets you mentioned

Todd Dexheimer · Answer

Sounds like you are looking for single family markets, which I don't know much about. If you are looking to purchase commercial MF, then look right in Jacksonville and the east Florida coast, Orlando, Tampa. Also, Savannah and Atlanta

William Whitley · Answer

@Rick Martin Hey Rick sounds good, I’m definitely keeping my eye out here but don’t want to limit myself for better cash flow opportunities in other markets if possible. Excited to get going either way as long as the numbers make sense 🤞 thanks for reaching out

What are some top Multifamily Markets

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