The Best Multi-Family Market To Buy In
Not all apartment markets are equal. Indeed, where you choose to buy and manage your apartment investments has a direct effect on how well you do.
Choose a market where all the factors in play support a profitable apartment investing experience, then buying and turning an apartment building around will go smoothly, and you will have a relatively easy time achieving all your objectives.
Choose a market where one or more key components of a healthy apartment market are missing though, and you will have a much harder time of it. Units will be harder to fill, turnover high, and projected values will not materialize, as you fight the headwinds of macroeconomic trends.
Making money is not difficult, for even the less experienced, when propelled by the tailwinds of a buoyant economy. So the question becomes, how do you find a buoyant apartment market to invest in?
Well, you can take other peoples’ advice, but that is always risky. Gurus are indeed “gurus” because they have something they want to sell you. So bear in mind, whatever advice you receive from a “guru”, it is part of an overall process that ends with you buying something from them.
You are much better off learning yourself what the factors influencing the health (or sickness) of an apartment market are, and then applying those to the primary and secondary multi-family markets across the country.
There are two advantages to taking this approach.
- You will end up knowing what you are doing. After learning what makes an apartment market tick, you will have the wherewithal to make data based decisions, and can proceed in a particular direction based on facts, rather than hearsay. And …
- Relying on your own analysis puts you in the path of opportunity when the opportunity appears, rather than when the masses have started chattering about it, and it probably isn’t much of an opportunity any more.
There are five characteristics of an apartment market that will help you determine whether it is a good place to invest. They are; strong population growth, young mobile residents, expanding employment base, tight sub-markets, and educated workforce. When you have these five factors ascendant in a market, you will have apartment investments that give you cashflow now, and equity growth in the years to come.