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 <30 days.

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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