Having Trouble Picking A Market

4 Replies

Hello, everyone I live in southern California and have three markets I want to invest in which are San Diego, Fort Worth, and Miami. The problem is I don't know really even know if theses are good markets for apartment investing. Am I picking to many markets to start off with and how do you decide what markets to invest in?

Are you a new investor?  If you are you must have substantial cash reserves as to be new and jump into apartments is a big step.

Miami is on the other side of the country, Texas is South and San Diego is probably closest.  

How did you come up with these markets for consideration?  I dont think there is a " market " that is known for apartments.  The current markets that I know are popular right now are: Memphis, Atlanta, Dallas, Houston. Other notable markets are: Indy, Kansas City, Orlando, Cleveland, Birmingham. 

Good luck

Assuming you are new to investing itself there are 2 questions to ask yourself.

1. Should I start with apartments as an investment or start with SFR's which are lower cost, lower risk etc.

Then the next question is where to invest. I was in 3 markets but found it too difficult to get good enough at all 3 so narrowed it down to 1.

4 years and hundreds of deals later I am now just starting to look at multi family.

Hope your journey is successful!

@Dean Letfus  

& @Curt Davis  

have covered some of the myriad reason you might not want to start off with apartments as a new investor.  Since they are way more experienced than I am, I'll simply let their comments on that stand.  My area of expertise right now is the Dallas/Ft Worth market.  If you're set on investing in an apartment complex, you're going to spend some time finding something to purchase here.  There just isn't a lot available, and the same is true for smaller multi-family properties.  That is mostly duplexes in this area.  There aren't a lot of tri & quad here.  The 4-plexes you find in this area are mostly historic homes that have been split up into quads, and those are relegated to a very few, select areas.

SFR rentals are hot in this market and have been for a long time. Right now they are being buoyed even further by an extreme shortage of SFR for sale, particularly in several hot, high-demand school districts. People are renting right now simply because they can't find a house they like in the area they want to be. We're at about 2.5 months of inventory, across the entire DFW area. The hottest areas are

If you are serious about apartments or even small multi-families and want to be in the Texas market, I recommend College Station, Denton & Commerce. There are large universities in those towns (A&M, University of North Texas, & A&M Commerce respectively). On campus housing is entirely insufficient to meet demand in those areas. SFR rentals & multi-families of every size have huge demand year round.

Hope that helps.

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