Multiunits 8-15 unit. What US region to look at ?

30 Replies

I live in California and looking to buy an 8-15 unit complex in the mid west or southern states but I'm open to other areas. I was going off the Landlord friendly state map 2021 What are some good cities to look at?

Alot of the midwest will fit the mold. What are your top criteria? cash flow? age of property? class of neighborhood?

I feel like philadelphia is an undervalued market for bigger unit properties. I know when I get a 10-15 unit property in my inventory, it sells within the next day. I would definitely give Philadelphia a look especially near the Temple University area as students come back to in class learning, you will find a good amount of clients for your property. 

@Brandon P. Good afternoon - Kansas City is still a great place for value and appreciation.  I am with Atlas Property Management and we manage both SF and MF.  Would be happy to assist you in any due diligence.  If you need a broker, I would contact either @Alex Olson or @Michelle Lutz for MF.  

Best,

Melinda

@Brandon P. Have you thought about the southwestern states like Arizona and New Mexico.  Tucson is starting to be crazy hot, but there are still some decent deals to be found.  

@Brandon P. check out Metro Detroit.

It's really going to depend on Class of property you want and cashflow.

Generally, the higher the Class of property, the lower your cashflow.

On the other hand, most investors forget that the lower the Class of the property, the higher the corresponding risk.

You should figure out what you're comfortable with versus going with someone else's opinion!

Quad Cities native here that just moved to Tucson, AZ ironically enough. I agree that both markets are great for multifamily, both (IA & AZ) are also landlord friendly. From what I've found, you will see considerably more appreciation in Tucson vs lower purchase prices and higher cash-flow in the Quad Cities. I think deals are much more obtainable back in the QC, so I have continued to invest there. Ultimately it all depends what you're looking for. I'm happy to be a resource if you want to learn more about Tucson or the Quad Cities, or need to scope out prospective deals.

Also looking to get into MF investing, I've got a handful of SFR houses in OK, but interested in AZ, TN, IN, MO. My network (boots on the ground team) is in OK but looking to move to a different market..

@Brandon P. what is the significance of the unit count?...by virtue of inventory properties in the range you are looking make up about 2% of all MF structures built...you're looking for a needle in a haystack...

You can buy an 8-unit in my city for $1.6m and a 16-unit for $600,000...what are some of the other criteria you are focused on...unit count really isn't that important

@Brandon P. the Quad Cities is a great market for small and medium sized multi families, particularly in Davenport on the Iowa side of the river. The COC returns are still very strong, IA is a landlord friendly state and the Quad Cities aren't oversaturated with investors. Amazon just announced in July that they are building a $250M distribution center in Davenport and will be hiring 1000 employees so that is big. I'd be happy to share more insights on the market if you want to reach out. You should definitely have it on your radar.

Originally posted by @Remington Lyman :
Originally posted by @Mark Joel Cualnag:

Is Cleveland a good area?

 Cleveland, Ohio is not as good of an area as Columbus, Ohio

 Really?

  • NBA Championships: Cleveland 1. Columbus 0.
  • Rock & Roll Hall of Fames: Cleveland 1. Columbus 0.
  • Famous Rappers: Cleveland 2. Columbus 0.
  • Big Lakes: Cleveland 1. Columbus 0.
  • Famous Irish Mob Bosses: Cleveland 1. Columbus 0.
  • Shows about it staring Drew Carey: Cleveland 1. Columbus 0.
  • Famous Serial Killers: Cleveland 2. Columbus 0.
  • Actors who starred in Ferris Bueller's Day Off: Cleveland 1. Columbus 0.

Speak for yourself bucko.