Would Love to pick everyones brain and commercial multifamilys

Multi-Family and Apartment Investing
5yFollow

Would Love to pick everyones brain and commercial multifamilys

Alex Grullon
Investor · Boca Raton, FL · Member since 2016 · 81 posts · 25 votes

What do you guys think about these location to invest in multifamilys.. and what would be the best way of finding deals in these areas. I'm new to commercial real estate any tips would be greatly appreciated.

Texas- Cedar Park, Midland, Austin

Utah- Ogden, Provo

Minnesota- Minneapolis, St. Paul,

Ohio- Columbus

Also consider Georgia

9Reply
186 views

Most Popular Reply

Tony Gunter
Investor · Canton, GA · Member since 2014 · 728 posts · 500 votes
5y

@Alex Grullon

Greetings from ATL/North Georgia.

Target mom and pop multis in areas where the eviction moratorium is being enforced strictly. I think many of them are over being LL’s and will be ready to sell as soon as they have it empty. Find the folks that are motivated to bail out.

5Reply
See this reply in the discussion

42 Replies

Jump to latestLatest
  • Tony Gunter
    Investor · Canton, GA · Member since 2014 · 728 posts · 500 votes
    5y

    @Alex Grullon

    Greetings from ATL/North Georgia.

    Target mom and pop multis in areas where the eviction moratorium is being enforced strictly. I think many of them are over being LL’s and will be ready to sell as soon as they have it empty. Find the folks that are motivated to bail out.

    5Reply
  • Jordan Ray
    Developer · Palm City, FL · Member since 2018 · 326 posts · 99 votes
    5y

    Hi, @Alex Grullon I am a commercial agent out of West Palm. I am interested in those locations as well for my personal investing so thanks for posting. I look forward to reading the suggestions. 

    Feel free to reach out if you are interested in connecting since we are both in SF. 

    @Jacob Pereira are you able to provide any insight into Texas? 

    2Reply
  • Alex Grullon
    OP
    Investor · Boca Raton, FL · Member since 2016 · 81 posts · 25 votes
    5y

    @Tony Gunter thank you for you input I'll definitely look into it.

    0Reply
  • Tony Gunter
    Investor · Canton, GA · Member since 2014 · 728 posts · 500 votes
    5y

    @Alex Grullon

    It’s was a shot in the dark given I don’t know your investment criteria.

    Best!

    0Reply
  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
    5y

    Hey Alex,

    This may vary based on your buying criteria- class type, unit size, location, price, etc- most of the markets you mentioned I have not invested in but I have heard good things. I am personally familiar with GA as it is one of our target markets. A lot of people look in GA for the same reasons I do lol. 

    Some indicators you can look art are- job growth, employers in area, median household income, rent rates, crime in the area, etc. 


    Let me know if there is any way I can help.

    2Reply
  • Alex Grullon
    OP
    Investor · Boca Raton, FL · Member since 2016 · 81 posts · 25 votes
    5y

    @Jeffrey Donis thank you.. all information helps I'm looking for around the 1 million mark for a 10-15 unit apart building. But some markets i know I'd need to down size. My main issue is finding sources in said areas to find me deals

    2Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    @Alex Grullon your budget isn’t nearly high enough to find 10-15 unit sized properties in Austin or the Cedar Park suburb. Starter fourplex properties in the city limits start around $600-700k and up. I’ll let the commercial brokers chime in, but I would predict you’ll be well over $1M to find something decent.

    Midland is a completely different story. That market rises and falls with the oil industry, so take that into consideration.

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5112 Reviews
    WebsiteView Page
    3Reply
  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    Hey @Alex Grullon I can only speak to Cbus OH but your range of 10-15 units would be a promising asset class here, in my opinion at least. Like most areas it just depends on where specifically or what specifically you are looking to accomplish.  There are several pockets of the city that offer tax incentives, as well as some rapid development immediately surrounding down town that is pushing rents and price appreciation in a very promising way. 

    From a macro level the region is strong and diverse economically, while still being fairly affordable for the rents a good unit will demand.  Cbus has many different major employers and industries, including being a logistics hub, so the job market is strong, and we are slated to have another million people move to the city by 2050, so the growth potential is there.  

    I would be happy to discuss in more detail some options and strategies based on your desired criteria, feel free to reach out if you are interested. 
      

    [email protected]614-362-2231
    3Reply
  • Alex Grullon
    OP
    Investor · Boca Raton, FL · Member since 2016 · 81 posts · 25 votes
    5y

    Hey @Ryan Kelly.. yes of course Austin and some parts of Georgia I would lower my search to 6-8 units. Do you mainly see commercial multifamilys in Texas?

    0Reply
  • Alex Grullon
    OP
    Investor · Boca Raton, FL · Member since 2016 · 81 posts · 25 votes
    5y

    @Michael K Gallagher Awsome thank you for the insight.. of course always looking to meet people in the markets i want to expand to.

    1Reply
  • Bernadeau C.Pro Member
    Rental Property Investor · Orlando, FL · Member since 2014 · 540 posts · 230 votes
    5y

    @Alex Grullon i am starting to get into the multi-family space, focusing on value-add deals. would love to connect and chat!

    2Reply
  • Bryan Noth
    Realtor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Alex Grullon there are many commercial multifamily in and around Austin, but the cap rate tends to be compressed closer to the city center. Value add is a great option but that is often an indicative of being capital intensive to offset the DSCR. You can get better price per unit and cap rates in smaller and more distant suburbs though. What metrics are you considering? Price point? And in truth, what is your goal for the investment (cash flow or value add for example)?

    0Reply
  • Mason Moreland
    Specialist · Midland, TX · Member since 2018 · 198 posts · 148 votes
    5y

    Midland can be pretty rough. Huge swings in rent prices here (our townhomes have gone from $2,900/mo market rent to $1,700/mo market rent within 12 months ha!). If you can get a good deal that cashflows in bad times, you should be OK and can make hay when times are good. There are several for sale here with big lift rehab needs. Not sure on price. Anticipate long-term holds typically.

    I'd also look at Abilene, San Angelo, and markets like that. Don't sleep on El Paso either.

    0Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    @Alex Grullon I serve residential real estate clients and we have a lot of residential multi family as well (2-4 units). The small commercial multi family (5-50 units) are generally founds in the older sections of Austin and the metro area. Most are older properties and will likely need remodeling. However, Austin is such a hot market even the value add properties will have lower cap rates. Be prepared to compete for them.

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5112 Reviews
    WebsiteView Page
    1Reply
  • Alex Grullon
    OP
    Investor · Boca Raton, FL · Member since 2016 · 81 posts · 25 votes
    5y

    @Bryan Noth thanks for you input.. price point is about 1 million. Would be a buy and hold looking for year over year increase at about 4% and positive cash flow

    0Reply
  • Bryan Noth
    Realtor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Alex Grullon the $1MM around Austin will be tough.  I had a deal come across Monday on a 10 unit apt complex in San Antonio under that price point with the T3 showing 5.8% cap rate.  Only 1 unit updated so upside on value add is there too.  

    1Reply
  • William Hochstedler
    Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    For Ogden, UT, you're at a popular price point for a popular asset class in a small market.  There are plenty of local dollars hovering around the few deals like this that come up that show any value.  Most of them also require work.

    I know very little about the Provo market except that it will be much harder to find anything that meets that criteria there.

    People are parking cash in Utah and the cap rates reflect it. 

    2Reply
  • Christopher Epp
    Developer · Long Island NY · Member since 2020 · 17 posts · 7 votes
    5y

    @Alex Grullon episode #496

    1Reply
  • Alex Grullon
    OP
    Investor · Boca Raton, FL · Member since 2016 · 81 posts · 25 votes
    5y

    @Mason Moreland great info thank you

    0Reply
  • John Harvey
    Member since 2020 · 20 posts · 9 votes
    5y

    @Alex Grullon looking at a 10 unit as we speak in Philadelphia if your interested.

    1Reply
  • Ekta Patel
    Rental Property Investor · Macon, GA · Member since 2020 · 37 posts · 20 votes
    5y

    @Jeffrey Donis

    I just DM you

    0Reply
  • John Newman
    Specialist · here · Member since 2021 · 3 posts · 5 votes
    5y

    @Alex Grullon

    2 of those are in the heart of the top 5 rental markets. Cedar park is damn near impossible to break into with Tesla being here. However Waco, Tex is sprinting into mf shortage, and it is outside of the box that will shut down again if deemed necessary alleviating any worry of no pay/no eviction, entry barrier is slightly less if you keep an ear to the ground on anything selling. It goes in 48 hrs or less with Amazon, space x, and chip and jo Anna whatever being there. The ripple of transplants arriving is being felt here from Corpus Christi to DFW. Very competitive but very lucrative. What quantity of units are you looking at? New or existing?

    1Reply
  • John Newman
    Specialist · here · Member since 2021 · 3 posts · 5 votes
    5y

    @Ryan Kelly

    Less than 1 mill is a waste of time looking in Austin/cedar park. If you have not looked into Granbury/weatherford area it has busted open and started a frenzy. Average permit filed for new construction monthly is up to 121 month from 55 month one year ago. Growth/med income combined with lake and historic district it is 4 rental market in the country.

    Or was as of 6/2021

    2Reply
  • Jacob Pereira
    Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
    5y

    @Jordan Ray,

    thanks for the shout out. As my colleague, @Ryan Kelly implied, 1M for 10-15 units would get nowhere near the OP's requirements in Austin or surrounding markets like Cedar Park. As an example, I own 16 units (not commercial to be fair) that are c-class, and I've estimated their total value to be just under 3M, and I think it's a fairly conservative estimate. Not very familiar with those other options, but I'd be surprised if any major urban area is selling for under 100k per door these days. That said, there's money to be made in any market, so @Alex Grullon probably just needs to adjust his parameters in such a way that can still meet his goals monetarily, even if the actual number of doors might be fewer. 

    0Reply
  • Dustin Lauer
    Lender · Orlando, FL · Member since 2016 · 340 posts · 115 votes
    5y

    @Alex Grullon

    I am a huge fan of this focus right now. I don’t suggest Minneapolis, but the rest are safer. Even local where you are there are great opportunities. Being willing to build them can also be worth while. Happy to connect directly. I’m involved in MF financing and heavy renovation / construction in most of the Midwest and South East US markets. Good luck!

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free