Some people believe they have to invest in their backyard, in the state they live in. I believe there are other indicators to look for that are more important than where you live.
What States To Invest In?
Some people believe they have to invest in their backyard, in the state they live in. I believe there are other indicators to look for that are more important than where you live.
What should you look for in a market when investing in multifamily real estate?
- Population growth
- Household formation growth
- Job growth
- Income growth
- Landlord friendly
Why are these factors important?
- increased population and household formation growth will increase the number of people competing for both residential homes and multifamily rentals
- it’s important to see job growth and income growth so that tenants are able to afford the rent for multifamily properties, especially as rental rates continue to rise
What states do I think are good growth markets?
- TX, Dallas, Houston, Austin, San Antonio
- AZ, FL, NC, SC, TN, GA
- Other markets: these are markets that I’ve been told from other strong syndicators that provide stable cash flow; Indianapolis, Cleveland, Louisville
Why do I share this story with you?
When I started looking to invest in real estate I did not know what to look for. I thought buying in my backyard was important. I learned from others that the above factors are more important indicators. I decided to invest in growth markets and the returns thus far have been impressive.
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