We are seeing a 6-year surge in apartment rentals. Why you say? Millennial renters, although we realized an increase in homeownership in 2016’s first two quarters we are seeing more and more households opting to rent instead of buying. There are many reason (see my last blog post) but overall this increasing market is looking more appealing to investor than ever before.
There are some HOT markets for buying multifamily units these are the top 5 in the nation.
- Orlando, FL
- Phoenix, AZ
- Atlanta, GA
- Fort Lauderdale, FL
- Las Vegas, NV
- New York City, NY
- Pittsburg, PA
- San Francisco, CA
- Miami, FL
- Nashville, TN
Location, Location, Location is always going to be the most important factor of any property you buy.
There are several tips about finding the best location.
- Finding the best property in the best neighborhood, or the worse property in the best neighborhood, because rehabbing a rundown property can make for a great investment if the location is in a well sought out area.
- Check with the Police or go to the library to see about the crime rate in the area before you buy. No one wants to rent in a high crime area.
- Check the schools and find out their state racking. Are they within walking distance from the property you are looking to buy.
- Parking is another very important factor, does your potential property have tenant parking for one or two vehicles or is it street parking only.
- You will need to know what the average rents in the neighborhood are producing.
You will want to learn about managing a rental property and know the tenant/landlord laws in your state. You will need to decide if you will manage or you plan to hire a managing company to run your properties.
Get the facts and know what you are doing BEFORE you invest!
Here are some websites and organizations that can provide information.
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ACMC Loan Consultant
Certified Mortgage Coach