First, thank you for taking some time to read my post. I am a long-time investor, but, relatively new to apartment/multi-family. My primary investments are in hedge funds as this has been my business for 30 years. A bit about myself: I currently own rental 2 properties, 1 in Asheville, NC (7 units) and 1 in Cresskill, NJ (SFH) that was too good a deal to pass up. I live in the NYC area. My income is high six-figures/low seven figures, i am an active investor in hedge funds so I rarely keep much cash available, my credit score is 800+ and I'm smart enough to know that I can get hurt badly venturing head first into an area that I'm not so well versed in.
I am not in need of current cash flow (although I don't mind it), and, I am looking for well maintained Class B/C/D buildings with a true and "real" 5%+ cap. As little out of pocket as possible (the deal in Asheville I did was 15% down and 5% owner financing), but, understand that 20% is the norm. I'm looking for areas in States that are landlord friendly as a must. I don't mind being an absentee landlord as long as I can put together a great team of providers as I've done in Asheville. Anything I've bought thus far as been "off-market" and I have people who are in touch with the owners regularly. I am looking for areas where the Vegan restaurants are going, the Microbreweries, Whole Foods, Trader Joe's, etc. My demographic renter pays $800-1200 per month and is a late 20s/30s/early 40s and is responsible with a job (bartender, waiter, young professional, etc.). Mainly i look for studios, 1-bdrs, and 2 bdrs. (think well maintained older brick building) adjacent or a short distance from the "cool" areas of town.
My macro bet is on the waning desire of the American dream of home ownership and more emphasis on being mobile through renting. Furthermore, the divide between the "haves" and "have nots" make renting the only viable option in many cases. My bet is on this trend continuing. I am looking for areas that have potential for rental and price appreciation, but, have not become so hot as of yet that they are unaffordable to hard working younger folks.
Any thoughts, criticisms, recommendations, referrals to areas (mainly interested in the Southeast US), service providers, etc. are thoroughly and greatly appreciated. Thus far, I've looked at Asheville, NC, and I'm considering Richmond, VA, Knoxville, TN and Kansas City, MO. I'm open to other ideas and/or thoughts about those markets.
I'm very grateful for any input and thank you in advance!
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