Where To Invest Now: How To Pick The Most Profitable Destinations
Which cities are best for multifamily real estate investors now?
Some property investors just stick to the same old markets year in and year out. Others are always looking for the next best place to invest for their financial timeline, and optimal risk-reward balance, as well as smart geographic diversification.
So, for those looking for the best places to invest in multifamily properties now, which destinations stand out?
Top Cities for Multifamily Investment in 2018
While there is some crossover in the most attractive cities to invest in apartment buildings between different lists, different organizations have their own opinions based on different metrics.
Freddie Mac’s forecast for 2018 points to Boston, West Palm Beach and San Francisco as some of the best for rental rate growth, as well as some secondary and tertiary markets in Ohio and Florida.
According to the Rental Housing Journal San Antonio and Houston, TX and Atlanta, GA. Houston is still bouncing back from Hurricane Harvey. San Antonio may be benefiting from the overflow from other major Texas markets. Atlanta is emerging as a hot business and economic hub, with a lot of new commercial property projects in the works.
Raleigh, NC, Louisville, KY and Columbus, OH are among the secondary and tertiary markets where Multi-Housing News see jobs and population increases providing growth opportunities.
Forbes list for investing in housing in general based on Local Market Monitor data includes:
- San Antonio
Buildium recommends Miami, Charleston, Denver, Jacksonville, Orlando, and Nashville. The Urban Land Institute has quite a contrasting list, which includes Seattle, Los Angeles, San Diego and New York City.
How to Pick the Right Real Estate Markets for You
Not only do different opinions of where markets are going impact the above rankings, but what investors are looking for and measuring by. Some rank on their bullishness on the overall economy or a favorite city. Others are looking at price growth and rents. Some want maximum upside potential in the next year, while others favor the lowest long-term risk.
At Park Capital Partners, LLC we look for:
- Strong employment drivers which support income stability and high occupancy rates
- Limited supply, which keeps prices up and competition low
- Population growth
- Markets that still have room to grow
- Attractive but sustainable cap rates
- Rising rents
- Low vacancy rates
The way to pick the best places to invest in real estate for yourself is to make sure they are in alignment with your unique needs. Understand that different asset classes and property types move on slightly different cycles. Match with your personal goals and financial needs, and your individual timeline. Are you looking for passive income, tax breaks, wealth preservation, or all of these? Are you just chasing yield, looking to hit a certain level in 5 or 10 years, or desiring legacy investments that can produce long-term income?
Know what you need. Know the markets which best provide that. Find the right way to invest.
ABOUT THE AUTHOR
Bill Zahller is the Managing Partner of Park Capital Partners, LLC and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Partners, LLC in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalPartnersLLC.com for more information.