What are some cities you are looking at as a multifamily investor in 2025?
Matthew HeckmanPro Member
Member since 2024 · 20 posts · 18 votesWhat are some cities you are looking at as a multifamily investor in 2025?
Most Popular Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votesOK - this question gets asked a lot by California investors. here's my answer: any market will work if you spend time getting to know it in person and building a team, and no market will work if you don't. there are successful investors in every state and failed investors in every state.
to be blunt, though, whenever i see a California investor wanting "cash flow," i get nervous, because with a standard long term rental, there isn't any in the first few years. any analysis or document or presentation or calculator that shows cash flow in the first year - anyhere - Alaska, Ohio, California - just doesn't account for many of the costs associated with purchasing, renting, and owning: closing costs, rent ready costs, lease out costs, first year repairs and stabilization. cash flow really kicks in after 10+ years of ownership, in my opinion.
here is an epic, thoughtful thread about different markets and the choices California investors have - lots of different perspectives and experiences in one thread, including successful investors in different states:
Why markets with low appreciation grow your net worth twice as fast
here's someone asking the exact same question as you:
Looking to invest out of state. Will be my first investment!
and, here's my required reading list for you if you're even thinking of investing "out of state":
Avoid Revolution Properties LLC at all costs
https://www.biggerpockets.com/forums/48/topics/1242392-rough...
https://www.biggerpockets.com/forums/48/topics/1137397-balti...
https://www.biggerpockets.com/forums/432/topics/1231840-sell...
https://www.biggerpockets.com/forums/311/topics/840134-memph...
https://www.biggerpockets.com/forums/963/topics/1195280-expe...
i would be happy to discuss any of this with you further. i have nothing to sell and am on here to help new investors protect their time and capital.
hope this helps
38 Replies
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
when you say "multifamily" do you mean small multi (2-4 units), or larger than that?
in any event my answer is as close to where you live as possible
are you already an investor or will this be your first project?
- Member since 2025 · 1 post · 1 vote1y
@Nicholas L.
Thank you Nicholas, you shared an abundant amount of good information. I am looking at investing locally but the information you shared has great value to me. Best regards.
- Member since 2024 · 20 posts · 18 votes1y
Small multifamily 2-4 units. I live in California which is a market I don't plan on investing in. I am not an investor currently, and am looking to purchase my first rental.
- Member since 2024 · 20 posts · 18 votes1y
Quote from @Nick Ortega:
Hey Mathew, I'm not sure where you are located but it depends on what you are looking for.
I'm in the Miami/South Florida area and I have out of state clients who call me about purchasing multifamily investment properties. Right now it's a really big thing here. But if you want to be closer to where you live then that's important too!
If you are ever interested in connecting let me know. I have a few off market multifamily properties that I think could be a great fit for what you're looking for.
Hi Nick, I live in California so I am looking out of state. Most of the markets I've been looking in thus far have been in Ohio, Georgia, SC, or Arkansas. Haven't done much research on Florida but I would be open to it! Do you own properties in your area as well? And what are some of the driving factors in the Miami/South Florida area currently?
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
OK - this question gets asked a lot by California investors. here's my answer: any market will work if you spend time getting to know it in person and building a team, and no market will work if you don't. there are successful investors in every state and failed investors in every state.
to be blunt, though, whenever i see a California investor wanting "cash flow," i get nervous, because with a standard long term rental, there isn't any in the first few years. any analysis or document or presentation or calculator that shows cash flow in the first year - anyhere - Alaska, Ohio, California - just doesn't account for many of the costs associated with purchasing, renting, and owning: closing costs, rent ready costs, lease out costs, first year repairs and stabilization. cash flow really kicks in after 10+ years of ownership, in my opinion.
here is an epic, thoughtful thread about different markets and the choices California investors have - lots of different perspectives and experiences in one thread, including successful investors in different states:
Why markets with low appreciation grow your net worth twice as fast
here's someone asking the exact same question as you:
Looking to invest out of state. Will be my first investment!
and, here's my required reading list for you if you're even thinking of investing "out of state":Avoid Revolution Properties LLC at all costs
https://www.biggerpockets.com/forums/48/topics/1242392-rough...https://www.biggerpockets.com/forums/48/topics/1137397-balti...
https://www.biggerpockets.com/forums/432/topics/1231840-sell...
https://www.biggerpockets.com/forums/311/topics/840134-memph...
https://www.biggerpockets.com/forums/963/topics/1195280-expe...
i would be happy to discuss any of this with you further. i have nothing to sell and am on here to help new investors protect their time and capital.
hope this helps
- Member since 2024 · 20 posts · 18 votes1y
Quote from @Nicholas L.:
OK - this question gets asked a lot by California investors. here's my answer: any market will work if you spend time getting to know it in person and building a team, and no market will work if you don't. there are successful investors in every state and failed investors in every state.
to be blunt, though, whenever i see a California investor wanting "cash flow," i get nervous, because with a standard long term rental, there isn't any in the first few years. any analysis or document or presentation or calculator that shows cash flow in the first year - anyhere - Alaska, Ohio, California - just doesn't account for many of the costs associated with purchasing, renting, and owning: closing costs, rent ready costs, lease out costs, first year repairs and stabilization. cash flow really kicks in after 10+ years of ownership, in my opinion.
here is an epic, thoughtful thread about different markets and the choices California investors have - lots of different perspectives and experiences in one thread, including successful investors in different states:
Why markets with low appreciation grow your net worth twice as fast
here's someone asking the exact same question as you:
Looking to invest out of state. Will be my first investment!
and, here's my required reading list for you if you're even thinking of investing "out of state":Avoid Revolution Properties LLC at all costs
https://www.biggerpockets.com/forums/48/topics/1242392-rough...https://www.biggerpockets.com/forums/48/topics/1137397-balti...
https://www.biggerpockets.com/forums/432/topics/1231840-sell...
https://www.biggerpockets.com/forums/311/topics/840134-memph...
https://www.biggerpockets.com/forums/963/topics/1195280-expe...
i would be happy to discuss any of this with you further. i have nothing to sell and am on here to help new investors protect their time and capital.
hope this helps
Thank you for the advice Nicholas. My current goal as you stated is narrowing down the markets I'm looking in so I can make myself very familiar with 1 or 2 before going in on any deal. In my case when I say cash flow, I'm just looking for something that breaks just above even to minimize the risk of being underwater in the first few years, and I can comfortably let my loan paydown and appreciation do their thing. I know RTP ratios aren't what they used to be, but I've ran numbers on several properties within a few markets and found some that can hit a $100-200 cash flow. I tend to overestimate my closing costs and expenses as well, and use market price when running my numbers even on properties that I could probably get for cheaper. I appreciate the links that you listed, I will be sure to check them out!
- 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votesI would look into the midwest; there are some solid opportunities out there for you and some great cash-flow deals. I know multiple investors out of state who have been able to find some cash-flowing opportunities in those areas
Quote from @Matthew Heckman:
I'm looking to break into the multifamily scene, specifically in the <$250,000 price range. I'm searching for something that would require light remodeling which I can BRRRR, no gut rehabs and preferably nothing turnkey unless cash flow is still obtainable. For anyone who actively invests in or is looking to invest in multifamily homes, what markets have you had success in, or do you think would be a solid starting point in 2025?
Kerlous Tadres | Reafco Real Estate539 Reviews - Member since 2025 · 15 posts · 4 votes1y
@Matthew Heckman Down here a few things are really driving the market steady job and population growth there are a lot of people are moving here from out of state, there's a really strong rental demand with low vacancies, and also Florida’s tax advantages that keep attracting residents and investors. I will say Prices are definitely higher than markets like Ohio or Arkansas, so cash flow can be tighter, but the long-term demand and appreciation potential in Miami make it a really good place right now to invest in my opinion.
let me know if you'd want to connect and talk more about it!
- 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 915 votes
For a first multifamily, I’d focus on Midwest markets where you can get solid cash flow without overextending on rehab. Look for neighborhoods with steady rental demand, low turnover, and affordable entry prices. Even smaller 2–4 units can be a great start if you find the right property and team.
Key things I’ve seen make a difference: understanding the local rental market, having a reliable contractor for light rehabs, and lining up a property manager early—even if you plan to self-manage at first.
What kind of cash flow are you targeting for your first property?
- Member since 2024 · 20 posts · 18 votes1y
Quote from @Arman Ahmed:
For a first multifamily, I’d focus on Midwest markets where you can get solid cash flow without overextending on rehab. Look for neighborhoods with steady rental demand, low turnover, and affordable entry prices. Even smaller 2–4 units can be a great start if you find the right property and team.
Key things I’ve seen make a difference: understanding the local rental market, having a reliable contractor for light rehabs, and lining up a property manager early—even if you plan to self-manage at first.
What kind of cash flow are you targeting for your first property?
Hi Arman, thanks for the reply! Affordable entry prices, under 250k preferably in my case for a 2-4 unit property is exactly what I'm looking for. I've looked into Ohio and Illinois but not may other Midwest markets, so I will certainly continue to do more research.
The kind of cash flow I'm targeting is really just to break above even. I plan on holding any property I invest in long term and letting the loan paydown and appreciation do the work. If I could find a property that will cash flow $100 a month per unit that would be great.
- 1yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Logical Property Management4.9446 Reviews- Investor · Member since 2023 · 66 posts · 37 votes1yDang, that's some great feedback there!! If you haven't written a book about this stuff yet, you should. If you have, please let me know and I'll pick up a copy. Either way, I'd like to learn more from you. Thank you for sharing this. I'll definitely read through it again when I'm not exhausted from work.
Quote from @Michael Smythe:
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
- Member since 2024 · 20 posts · 18 votes1y
Quote from @Michael Smythe:
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Hi Michael, I really appreciate the advice! I actually saw this response that you had posted in another forum and saved it because I found it very useful. I'm targeting B class neighborhoods for the most part but am also open to C class depending on the situation.
The tenant screening criteria I have is 600+ credit score, 2+ years of consistent work history, a gross monthly income of 3.5x the monthly rent, a monthly payment debt to income ratio under 40%, no previous evictions, and preferably a letter of rec from a previous landlord.
If there is anything you think I should add or change to my criteria for the neighborhoods I'm targeting, please let me know. Thanks again!
- 1yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Quote from @Matthew Heckman:
Quote from @Michael Smythe:
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Hi Michael, I really appreciate the advice! I actually saw this response that you had posted in another forum and saved it because I found it very useful. I'm targeting B class neighborhoods for the most part but am also open to C class depending on the situation.
The tenant screening criteria I have is 600+ credit score, 2+ years of consistent work history, a gross monthly income of 3.5x the monthly rent, a monthly payment debt to income ratio under 40%, no previous evictions, and preferably a letter of rec from a previous landlord.
If there is anything you think I should add or change to my criteria for the neighborhoods I'm targeting, please let me know. Thanks again!
1) How are you going to verify work history?
2) Income = 3.5 times rent? Why do this if you're also doing Debt-to-Income?
3) How do you know the letter of rec isn't fake?
- How will you know the "landlord" isn't a relative pretending to be their landlord?4) Bank statement - get the most recent one, all pages, no blacked out info. Cross-reference the account number against the direct deposit account on their paystub.
- You can use direct deposit info to help avoid fake paystubs!Logical Property Management4.9446 Reviews - 1yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Quote from @Chris Forbush:
Dang, that's some great feedback there!! If you haven't written a book about this stuff yet, you should. If you have, please let me know and I'll pick up a copy. Either way, I'd like to learn more from you. Thank you for sharing this. I'll definitely read through it again when I'm not exhausted from work.Quote from @Michael Smythe:
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Thanks:)
DM us to chat more!
Logical Property Management4.9446 Reviews - Member since 2024 · 20 posts · 18 votes1y
Quote from @Michael Smythe:
Quote from @Matthew Heckman:
Quote from @Michael Smythe:
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Hi Michael, I really appreciate the advice! I actually saw this response that you had posted in another forum and saved it because I found it very useful. I'm targeting B class neighborhoods for the most part but am also open to C class depending on the situation.
The tenant screening criteria I have is 600+ credit score, 2+ years of consistent work history, a gross monthly income of 3.5x the monthly rent, a monthly payment debt to income ratio under 40%, no previous evictions, and preferably a letter of rec from a previous landlord.
If there is anything you think I should add or change to my criteria for the neighborhoods I'm targeting, please let me know. Thanks again!
1) How are you going to verify work history?
2) Income = 3.5 times rent? Why do this if you're also doing Debt-to-Income?
3) How do you know the letter of rec isn't fake?
- How will you know the "landlord" isn't a relative pretending to be their landlord?4) Bank statement - get the most recent one, all pages, no blacked out info. Cross-reference the account number against the direct deposit account on their paystub.
- You can use direct deposit info to help avoid fake paystubs!Hi Michael, these are great points that I will certainly use. I plan on verifying work history through w2 or 1099 statements, and I wanted to include income/rent and DTI ratios to confirm that a tenant would not only make enough to cover rents but also not have any outstanding debt that might jeopardize their ability to meet the monthly rent. As for landlord letter of rec, I plan on having tenants I would interview include contact information so I can reach out personally, I understand it could still be faked, but it wouldn't be a requirement in my screening just a preference.
I will certainly take your advice on asking for bank statements and cross referencing with a direct deposit number. I appreciate the advice!
- 1ySeth McGatheyBusiness MemberReal Estate Agent · Milwaukee WI · Member since 2024 · 318 posts · 252 votes
Hello, you can get around those numbers here in Milwaukee. I bought a duplex last year for $300,000. Put about $10,000 of mostly cosmetic work into it and am now cash flowing about $500 a month. I could make a little more if I raised the rent on the hold over tenant. But I already raised it a lot on her, so I didn't want to overdo it when I didn't have to.
You can find some $250,000 or less properties In Milwaukee but you will either have to go into neighborhoods where the property will likely get trashed or need to do some slightly bigger improvements than I did. Probably in the $15,000-$25,000 range.
If that is something you are interested in talking about more, I would be happy to discuss the Milwaukee market with you.
Seth McGathey - Shorewest Realtor4.913 Reviews- Member since 2024 · 20 posts · 18 votes1y
Quote from @Seth McGathey:
Hello, you can get around those numbers here in Milwaukee. I bought a duplex last year for $300,000. Put about $10,000 of mostly cosmetic work into it and am now cash flowing about $500 a month. I could make a little more if I raised the rent on the hold over tenant. But I already raised it a lot on her, so I didn't want to overdo it when I didn't have to.
You can find some $250,000 or less properties In Milwaukee but you will either have to go into neighborhoods where the property will likely get trashed or need to do some slightly bigger improvements than I did. Probably in the $15,000-$25,000 range.
If that is something you are interested in talking about more, I would be happy to discuss the Milwaukee market with you.
Hey Seth, thanks for the reply. I'll definitely look into Milwaukee, will certainly reach out to you in the future if I decide to invest there.
- 1ySeth McGatheyBusiness MemberReal Estate Agent · Milwaukee WI · Member since 2024 · 318 posts · 252 votes
@Matthew Heckman sounds good. Even if you don't decide to invest here, feel free to reach out with any questions you might have.
Seth McGathey - Shorewest Realtor4.913 Reviews
- Member since 2024 · 20 posts · 18 votes1y
Quote from @Nick Ortega:
@Matthew Heckman Down here a few things are really driving the market steady job and population growth there are a lot of people are moving here from out of state, there's a really strong rental demand with low vacancies, and also Florida’s tax advantages that keep attracting residents and investors. I will say Prices are definitely higher than markets like Ohio or Arkansas, so cash flow can be tighter, but the long-term demand and appreciation potential in Miami make it a really good place right now to invest in my opinion.
let me know if you'd want to connect and talk more about it!
Thanks for the reply Nick! Definitely some enticing factors with Florida's market. In the past I've been deterred from looking more into Florida with the high insurance costs and hurricane hazards. How do the investors you work with manage that issue, and would you say the benefits outweigh these risks? Also with declining prices hitting cities in Florida more than most other states have you noticed an influx of new investors and competition in your markets?
- Investor · Member since 2023 · 66 posts · 37 votes1y
Thank you @Matthew Heckman for posting this. I'm learning all sorts of stuff from these conversations and I sincerely appreciate it.
I'm currently working to purchase my first small multi family property in Salt Lake County, Utah. There's a lot of growth happening here and I've lived here all my life. I've got my eyes on several places around here.
- Member since 2024 · 20 posts · 18 votes1y
Quote from @Chris Forbush:
Thank you @Matthew Heckman for posting this. I'm learning all sorts of stuff from these conversations and I sincerely appreciate it.
I'm currently working to purchase my first small multi family property in Salt Lake County, Utah. There's a lot of growth happening here and I've lived here all my life. I've got my eyes on several places around here.
Hey Chris, I appreciate the reply, I'm learning lots from all the posts under this forum as well. I think it's great that you found a market that you also live in, best of luck to you!
- New to Real Estate · Bay Area, CA · Member since 2022 · 9 posts · 10 votes1y
Quote from @Chris Forbush:
Thank you @Matthew Heckman for posting this. I'm learning all sorts of stuff from these conversations and I sincerely appreciate it.
I'm currently working to purchase my first small multi family property in Salt Lake County, Utah. There's a lot of growth happening here and I've lived here all my life. I've got my eyes on several places around here.
Hi Chris, I'm also a newbie investor, looking for my first multi-family investment and am looking at Indianapolis right now, but I've heard Salt Lake City, UT was a great market as well (and is closer to where i live in CA). Curious if there certain areas of SL that you're looking at, specifically?
- Investor · Member since 2023 · 66 posts · 37 votes1y
Quote from @Waleed Elgindy:
Quote from @Chris Forbush:
Thank you @Matthew Heckman for posting this. I'm learning all sorts of stuff from these conversations and I sincerely appreciate it.
I'm currently working to purchase my first small multi family property in Salt Lake County, Utah. There's a lot of growth happening here and I've lived here all my life. I've got my eyes on several places around here.
Hi Chris, I'm also a newbie investor, looking for my first multi-family investment and am looking at Indianapolis right now, but I've heard Salt Lake City, UT was a great market as well (and is closer to where i live in CA). Curious if there certain areas of SL that you're looking at, specifically?
I've sent you a connection request so we can talk there. Thank you for reaching out Sir!
- 1yCharles ClarkBusiness MemberReal Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
@Matthew Heckman
Great strategy with BRRRR under $250k. Markets like Cleveland, Kansas City, and parts of the Midwest still have multifamily deals in that range with light value-add potential and solid cashflow. Happy to share some insights and connect you with options if you'd like to explore!
Raise the Standard RE LLC54 Reviews- Member since 2024 · 20 posts · 18 votes1y
Quote from @Charles Clark:
@Matthew Heckman
Great strategy with BRRRR under $250k. Markets like Cleveland, Kansas City, and parts of the Midwest still have multifamily deals in that range with light value-add potential and solid cashflow. Happy to share some insights and connect you with options if you'd like to explore!Hi Charles, thanks for the reply! I've looked into Cleveland in the past but the declining population growth has deterred me from looking any further. I've heard KC mentioned several times but haven't looked into it personally, will certainly do some research though. Do you invest in either of these areas yourself?
- Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes1y
There are some class A located duplexes in the KC metro that are sub $300,000. They are rare but exist.
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Matthew Heckman:
I'm looking to break into the multifamily scene, specifically in the <$250,000 price range. I'm searching for something that would require light remodeling which I can BRRRR, no gut rehabs and preferably nothing turnkey unless cash flow is still obtainable. For anyone who actively invests in or is looking to invest in multifamily homes, what markets have you had success in, or do you think would be a solid starting point in 2025?
Hey there and welcome to BP—great question! If I were in your shoes looking to break into multifamily under $250K with light renovation potential, here’s how I’d think it through: I’d personally lean toward multiple smaller multifamily units (think duplexes or triplexes) rather than sinking everything into a single property. That way you diversify your risk, increase potential cash flow streams, and set yourself up for the BRRRR strategy more easily. It also gives you more flexibility to pivot—swap one underperforming unit without jeopardizing your whole portfolio.
A few markets come to mind:
Dayton, Ohio has been highlighted as one of the top U.S. investment markets thanks to its affordability, rising home values, low rental vacancy rate (around 4.7% as of early 2024), and proximity to larger metros like Columbus and Cincinnati—all while keeping properties well under $250K (The Sun).
Starkville, Mississippi is also gaining attention—not in the multifamily space as much, but still promising for affordability and rental demand. You can “find a nice clean house in a good neighborhood under $250,000,” and the town’s growing multifamily inventory (spurred by university demand) might offer some relevant opportunities (New York Post).
As for Columbus, Ohio, while it's a bit pricier, you can still find duplexes or small multifamily options under $250K. There are around 312 multifamily listings, and at least some fall below that price point—so keep your eyes peeled (Movoto). Plus, the macroeconomics here are incredibly strong—with population and job growth fueled by big players like Intel, Amazon, Google, and others—translating into long-term rental demand and appreciation.
Here’s how I’d structure your approach in 2025:
— Market to watch: Dayton offers affordability, strong rental demand, and low vacancy rates. Great for cash flow and under-budget multifamilies. Columbus is slightly more expensive but still doable, especially for BRRRR-focused strategies—plus the upside is huge.
— Property type and strategy: Aim for duplexes or triplexes needing only light fixes—think new paint, minor cosmetic updates, maybe shallow rehab but nothing major. Avoid turnkey if it kills your returns; your goal is cash flow plus rehab value built into the exit. Depending on what you find, you could buy 1–2 units per $250K tranche via BRRRR over time.
— BRRRR considerations: Have your financing and renovation team lined up to move quickly. Focus on properties with forced appreciation potential. You could buy, rehab, rent, refinance, and keep going—especially effective in Dayton’s affordable market or Columbus’s appreciation environment.
— Networking and local intel: Talk to out-of-state investors on forums—you’ll often find recommendations like, “Oklahoma City and Atlanta really excite me” for small multifamily (Reddit). Combining that with forums focused on Dayton or Columbus could surface off-market deals or light-rehab opportunities.
To wrap up: If you're starting now, Dayton Ohio seems like a standout for <$250K multifamily BRRRR deals with good cash flow and demand. Columbus still works if you're aiming for appreciation too. Once you find a solid deal, focus on light rehab, renting fast, and cycling that capital—then rinse and repeat. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews- Member since 2024 · 20 posts · 18 votes1y
Quote from @Jimmy Lieu:
Quote from @Matthew Heckman:
I'm looking to break into the multifamily scene, specifically in the <$250,000 price range. I'm searching for something that would require light remodeling which I can BRRRR, no gut rehabs and preferably nothing turnkey unless cash flow is still obtainable. For anyone who actively invests in or is looking to invest in multifamily homes, what markets have you had success in, or do you think would be a solid starting point in 2025?
Hey there and welcome to BP—great question! If I were in your shoes looking to break into multifamily under $250K with light renovation potential, here’s how I’d think it through: I’d personally lean toward multiple smaller multifamily units (think duplexes or triplexes) rather than sinking everything into a single property. That way you diversify your risk, increase potential cash flow streams, and set yourself up for the BRRRR strategy more easily. It also gives you more flexibility to pivot—swap one underperforming unit without jeopardizing your whole portfolio.
A few markets come to mind:
Dayton, Ohio has been highlighted as one of the top U.S. investment markets thanks to its affordability, rising home values, low rental vacancy rate (around 4.7% as of early 2024), and proximity to larger metros like Columbus and Cincinnati—all while keeping properties well under $250K (The Sun).
Starkville, Mississippi is also gaining attention—not in the multifamily space as much, but still promising for affordability and rental demand. You can “find a nice clean house in a good neighborhood under $250,000,” and the town’s growing multifamily inventory (spurred by university demand) might offer some relevant opportunities (New York Post).
As for Columbus, Ohio, while it's a bit pricier, you can still find duplexes or small multifamily options under $250K. There are around 312 multifamily listings, and at least some fall below that price point—so keep your eyes peeled (Movoto). Plus, the macroeconomics here are incredibly strong—with population and job growth fueled by big players like Intel, Amazon, Google, and others—translating into long-term rental demand and appreciation.
Here’s how I’d structure your approach in 2025:
— Market to watch: Dayton offers affordability, strong rental demand, and low vacancy rates. Great for cash flow and under-budget multifamilies. Columbus is slightly more expensive but still doable, especially for BRRRR-focused strategies—plus the upside is huge.
— Property type and strategy: Aim for duplexes or triplexes needing only light fixes—think new paint, minor cosmetic updates, maybe shallow rehab but nothing major. Avoid turnkey if it kills your returns; your goal is cash flow plus rehab value built into the exit. Depending on what you find, you could buy 1–2 units per $250K tranche via BRRRR over time.
— BRRRR considerations: Have your financing and renovation team lined up to move quickly. Focus on properties with forced appreciation potential. You could buy, rehab, rent, refinance, and keep going—especially effective in Dayton’s affordable market or Columbus’s appreciation environment.
— Networking and local intel: Talk to out-of-state investors on forums—you’ll often find recommendations like, “Oklahoma City and Atlanta really excite me” for small multifamily (Reddit). Combining that with forums focused on Dayton or Columbus could surface off-market deals or light-rehab opportunities.
To wrap up: If you're starting now, Dayton Ohio seems like a standout for <$250K multifamily BRRRR deals with good cash flow and demand. Columbus still works if you're aiming for appreciation too. Once you find a solid deal, focus on light rehab, renting fast, and cycling that capital—then rinse and repeat. Happy to connect and answer any questions you have!
Hey Jimmy, really appreciate the reply, a lot of great information here! The strategy you described sums up exactly what I'm looking for, small multifamily, light cosmetic rehab, and areas with solid metrics for long term growth.
Columbus is on everyone's list including my own, I haven't looked into Starkville but I certainly will now, and as for Dayton, I've researched it in the past and its got very enticing qualities, but the declining population YoY has dropped it lower on my list. In your opinion, how important is population growth from an investors standpoint, and does the low vacancy rate make up for it?
As for Columbus, from your expertise as an agent, and with investors you work with, what is a realistic amount of cash flow I can expect per unit with the price range and strategy I'm looking for, 100-200, 2-3, 3-4? And lastly is Columbus too competitive of a market to break into as a new investor in 2025, would you personally look elsewhere if you were starting fresh?
Thanks again for all the help!
- 1yCharles ClarkBusiness MemberReal Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
@Matthew Heckman
Great approach—BRRRR on small multifamily is a smart entry point. In today's market, I'd look at Midwest and Southeast cities where <$250K deals still exist with light value-add potential, like Cleveland, Indy, Kansas City, or parts of Alabama. Cash flow is tighter everywhere, but those markets still offer solid entry opportunities.Raise the Standard RE LLC54 Reviews- Member since 2024 · 20 posts · 18 votes1y
Quote from @Charles Clark:
@Matthew Heckman
Great approach—BRRRR on small multifamily is a smart entry point. In today's market, I'd look at Midwest and Southeast cities where <$250K deals still exist with light value-add potential, like Cleveland, Indy, Kansas City, or parts of Alabama. Cash flow is tighter everywhere, but those markets still offer solid entry opportunities.Hi Charles, I appreciate the feedback! Will certainly take those recommendations. Do you personally invest in any of these cities?
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes1y
Happy to chat on Kansas City, great market to do a variety of strategies
- 1yLynne HartBusiness MemberReal Estate Agent · Saint Louis, MO · Member since 2015 · 115 posts · 49 votes
Alot of attention in St. Louis Missouri - we have a big inventory and things in your price range, at least duplexes. You may have to raise the price point a little to get a 4 family on a conventional loan, because it will have to be inhabitable, but its also possible to fine operational but 'ugly duckling' 4 families in St. Louis in solid neighborhoods around that price point. Let us know if we can help in any way. www.saintlouisrealestate.co We specialize with investors and 90% of our business is with multifamily investors.
InveSTLouis at Real Broker LLC54 Reviews - Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes1d
Quote from @Matthew Heckman:
I'm looking to break into the multifamily scene, specifically in the <$250,000 price range. I'm searching for something that would require light remodeling which I can BRRRR, no gut rehabs and preferably nothing turnkey unless cash flow is still obtainable. For anyone who actively invests in or is looking to invest in multifamily homes, what markets have you had success in, or do you think would be a solid starting point in 2025?
For small multifamily less than $250K I'd focus on Cleveland, Memphis, Detroit, Indianapolis & Pittsburgh
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes1d
If you're gonna look at Cleveland, you need to understand that not all cheap properties on Zillow are gonna be a good deal. Some of these things are ticking time bombs that really screw up out of state investors.
Make sure you read The Ultimate Guide to Grading Cleveland Neighborhoods. This free guide has been around for over 10 years and 1,000's of out of state investors have used it to reduce their risks here in town.
- New to Real Estate · Seattle · Member since 2026 · 15 posts · 10 votes17h
Saving that link now. Thanks for sharing
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