Best location to live in USA to start a multifamily business?

Question

It would be my first time in Real Estate Investing. Saying business bc heard that multifamily investing is more like business.

I was thinking seriously of moving to Austin. But currently living in DC. Does it really matter where you live? bc I think regardless of what city you live in you will have start outside in rural places and work your way in. What are you thoughts?

Erik W. · Answer

I'm a fan of digging for diamonds in my own back yard. I know the area, the people, the laws, and where the best pizza & beer places are. Opportunity is everywhere, and my view is once you get into an area of 50,000+ people with a growing, diverse economic base that has reasonably good climate and access to transportation and entertainment. People want to live there, by default, so they will, and your investment will prosper.

Btw, you know the old adage about "best" anything, right? The "best" of anything depends on your preferences, tastes, goals, etc.

Btw, you know the old adage about "best" anything, right?  The "best" of anything depends on your preferences, tastes, goals, etc.

Cody Lewis · Answer

"Best" is relative. If you're looking to jump in, start in your backyard as there may be deals to be had there. There is a lot to be said about being able to visit your property quickly on your first one. Trust your process and your numbers. Also, you could look to passively invest in markets you like but do not live in currently.

Peter Nikic · Answer

and while NYC has NONE of the advantages that I mentioned above, you still might be right. But I think only for those with deep pockets, not someone starting out.

Alexander Szikla · Answer

@Peter Nikic , well, even with limited equity - a lot can be done here with FHA loans

Joe Archbold · Answer

Erik W Nailed it. There are investors all over the planet killing it in their market. Hard to define best. Certainly there are growth areas in most of the sunbelt. The Hot markets are just as hard to find and acquire good properties. I get listings pushed to me from reliable realtors that know what I am looking for in several markets, for the criteria I care about, to stay in touch with what is selling and at what price. You can remote your investment but then you have to rely on the team handling your investment. The easiest path and fastest route to participate in remote markets has to be through Syndication.

Good Luck,

Joe

Anthem Investing

William Costello · Answer

@Christian Olivo there are deals everywhere but you don't  necessarily need to be in the same city that you are looking to invest in. There are multiple ways to get into a market without actually being there like syndication for example. The sunbelt and midwest markets are great places to look as well.

Dan Burstain · Answer

Top 5 city to live in 5 years running (#1 3 of those years).  Apple, Tesla, Amazon, Google, Oracle, Facebook, and about 1500 other companies moving here or expanding existing operations here.  From an ROI point of view, there is not too many better options and Austin is also one of the safest places to invest having its largest drop in price in the last 40 years being 2.9%.  The huge government and university job base helps prevent the slides down while the tech, medical, and other industries provide the ride up.

Steven Pesavento · Answer

There are markets that are seeing massive growth, which therefore you could call "a better market", however at the end of the day the grass is greenest where you water it.

I'd recommend building those broker relationships 1-by-1 or invest passively with an experienced sponsor team to get access to other markets outside of your area.

Charles Dobens · Answer

I agree with Erik W above. There are deals to be had in your own backyard. You just have to do the work and find them. For some magic reason, new investors think all the have to do is move to a market that some guru called hot and their business will be instantly launched. The difference between your own backyard and Austin (assuming you are still learning the ins and outs of Austin) is that when a deal comes along in your own backyard, you will know its a deal. You won't have that benefit in a new city.

I love those people that pick up the phone to call a broker for the first time and use that age old tired criteria - "I'm looking for a C in a B". If you have never been to that town before, how would you know what the broker shows you is truly a C in a B. More likely its a C- in a D. But how would you know.

This is a business. All business involves risk. Your job as the leader of that business is to reduce that risk as best you can. Starting in a new business that you little experience in, that is 1,000 miles away, being overseen by someone that you met off the internet and you are doing it with other people's money is a recipe for disaster. I am not saying it can't be done (heck, I've done it), but my advice is to minimize risk!

Bruce Woodruff · Answer

This is a business. So it's all about money and long term security (amongst many other things of course)

That would make me consider 2 things first off:  Is the state tax (property tax, income tax, sales tax) and landlord friendly?

Best location to live in USA to start a multifamily business?

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