Waller Group

Did you think it’s too late to start investing in multifamily properties, for 2020? Think again, because this upcoming year could be your best for investing in real estate!

Whether you are planning to sell your multifamily properties or are considering buying into real estate investing markets, you need to take a long-term approach to maximize profits.

The first step is identifying which markets are worth your time to invest in.

We give your new year a jumpstart by sharing some fresh research to find the five top real estate markets in the South East and West Coast United States. It’ll help you to know where to direct your efforts so you can set yourself up for decades of profits and passive income.

It’s important to know what to look for when looking for long term investment properties. A few key data points that make specific areas popular for selling real estate or maximize your property investments:

• GROWTH- look at current growth trends to find a mix of value and demand. Don’t look at what’s hot in 2020 only, pay attention to the projected growth for the next three, five and 10 years. Medium growth markets are better for both selling now and years down the road.
• JOBS ADDED- Increasing job opportunities in a city, especially from well paying companies make the area attractive to real estate buyers and sellers.
• VACANCY RATE and CURRENT HOME PRICES- Areas with a high vacancy rate or markets with high housing prices could make selling an apartment complex hard to fill for an owner.

With that being said, let’s look at 5 great markets to start looking at for selling multifamily properties and real estate investing in 2020:

DALLAS, TEXAS

• Traditional Cap Rate on Multifamily: 1.8%
• Median Property Price: $506,500
• Price per Square Foot: $200
• Traditional Rental Income: $2,170
• Price to Rent Ratio: 18
• Multi Family Homes Listings: 126

NAPLES, FL

• Traditional Cap Rate on Multifamily: 5.9%
• Median Property Price: $351,300
• Price per Square Foot: NA
• Traditional Rental Income: $2,980
• Price to Rent Ratio: 25
• Multi Family Homes Listings: 91

ATLANTA, GA

• Traditional Cap Rate on Multifamily: 2%
• Median Property Price: $530,000
• Price per Square Foot: $148
• Traditional Rental Income: $2,180
• Price to Rent Ratio: 17
• Multi-Family Homes Listings: 62

LOS ANGELES, CA

• Traditional Cap Rate on Multifamily: 2.1%
• Median Property Price: $1,073,100
• Price per Square Foot: $470
• Traditional Rental Income: $4,350
• Price to Rent Ratio: 24
• Multi Family Homes Listings: 954

SAN BERNARDINO, CA

• Traditional Cap Rate on Multifamily: 4.5%
• Median Property Price: $632,700
• Price per Square Foot: $356
• Traditional Rental Income: $4,820
• Price to Rent Ratio: 16
• Multi Family Homes Listings: 41

CONCLUSION

Regardless of the area you find a real estate investment opportunity in 2020, dig deeper with your research with your eye on the next three to five years. Selling multifamily properties at the wrong time could result in a huge loss or buying the wrong investment property could take a long time to make a minimal profit.

To learn more about what possibilities are available for selling your Apartment Building, Property Management and Multifamily Property- Contact a Waller Group Capital Agent today for your free property valuation.