Top 12 Best Cities to Buy Multi Family Properties

When it comes to diversifying your investment portfolio, deciding to buy multi family properties is a promising strategy. It’s a real estate investment path that can not only bolster your income but also introduce you to a different subset of the rental market.

Here are some optimal locations to invest in, when you choose to buy multi family properties:

• Atlanta’s Real Estate Opportunities: This bustling southern city offers competitive property rates.
• Baltimore’s Housing Investments: Discover enduring value in Baltimore’s multi-family housing scene.
• Chicago Multi Family Properties: Consistent growth makes the Windy City an attractive choice.
• Houston’s Real Estate: Leverage Houston’s active real estate market for high returns.
• New York City Multi Family Homes: Enjoy the perks of investing in the nation’s largest metropolitan region.
• Seattle’s Residential Expansion: Experience Seattle’s diverse residential real estate opportunities.

Purchasing multi-family properties in these booming markets can propel your success as a real estate investor.

An Exciting Entryway into Real Estate Investment

In addition to generating a steady stream of rental income, multi-family properties serve as an excellent equity-building asset.

This style of investment allows investors to spread risk across multiple units, as opposed to relying on a single tenant with single-family homes.

Purchasing multi-family properties often results in lower per-unit maintenance costs due to economies of scale.

Plus, high demand for rental properties in urban centers will likely ensure your multi-family investments maintain high occupancy rates.

1. Real Estate Opportunities in Atlanta

Atlanta’s real estate market is a potpourri of promising opportunities for those looking to invest in multi-family properties.

The city boasts a diversity of homes, some of which are highlighted below.

A. Westwood Ave SW

Nestled in the heart of Atlanta, a unique listing at 1563 Westwood Ave SW is on the market for $1,025,000. ENGEL & VÖLKER ATLANTA oversees this captivating property.

B. Wieuca Overlook NE

Another gem is located at 4282 Wieuca Overlook NE. With a price tag of $1,199,000, this property is managed by REALTY GOLD TEAM.

C. Pharr Court South NW

If you’re budget-conscious, consider 2965 Pharr Court South NW APT 419. Listed at a friendly price of $200,000, this property managed by CHAPMAN HALL REALTORS might pique your interest.

D. Simon Ter NW

An affordable option under KELLER WILLIAMS REALTY ATL. PARTNERS is located at 252 W Simon Ter NW, with an asking price of $309,900.

E. Narron Dr SW

NEXT RESIDENTIAL REAL ESTATE offers a property at 3838 Narron Dr SW with an asking price hovering around $239,000.

And these are just a few options! From Sugar Creek Trce to Cascade Parc Blvd SW, the possibilities for buying multi-family properties in Atlanta are diverse and worth exploring.

2. Investing in Baltimore’s Housing Market

Property prices in Baltimore are softening. This pattern is a green light for investors to dive into Maryland’s real estate market.

A Low Price-Point Paradise

The lower price-point in Baltimore enables investors to diversify their portfolios without breaking the bank.

In turn, this offers them an opportunity for substantial growth. Investors can buy more properties and thus, raise their potential returns.

The Attraction of Baltimore

Baltimore is attracting droves of investors due to its affordability. With a vast selection of properties, there’s something for every budget.

The city continues to thrive, driven by economic growth and a robust job market, fueling demand for housing.

Baltimore Investment Potentials

Baltimore houses are not just affordable; they also offer good rental yields. Rental income can be impressive, making it a lucrative opportunity.

According to data from the Baltimore Post Examiner, more investors are becoming attracted to the city’s property market.

This trend shows no signs of slowing down. This data is a positive sign for those considering investing in multi-family properties in Baltimore.

If you’re looking for an opportunity to diversify your portfolio or kickstart your real estate career, Baltimore could be just the place. The potential benefits are numerous – affordability, diversity, and good returns.

Bottom Line

With thoughtful strategy and careful planning, investors can find their niche in Baltimore’s housing market.

3. Multi Family Properties in Chicago

Chicago, famous for its bold architecture, has a diverse range of multi-family properties. These properties are affordable and offer a great investment opportunity.

The ‘Gentle Density’ approach in Chicago is worth looking at. This concept involves building affordable multi-family rentals to meet increasing demand in urban areas.

1. Property Prices: Compared to other major cities, prices are fairly moderate, providing an excellent entry point for first-time investors.
2. Steady Demand: With a stable job market and growing population, demand for housing in Chicago is consistently high.
3. Rental Yields: Rental yields remain strong due to steady demand and limited supply, translating into favorable returns for property owners.

You can further explore the ‘Gentle Density’ concept on Curbed Chicago.

This approach aims to address affordability while maintaining neighborhood character. It’s reshaping the real estate landscape in Chicago.

Diversification is another advantage of investing in multi-family properties. With multiple units under one roof, you’re spreading the risks.

So if you’re considering real estate investments, multi-family homes in Chicago could be an ideal starting point.

4. Denver’s Appealing Property Rates

Denver’s property market has been quite active, with an impressive volume of residential appeals. Even amidst this surge, the success rate for appeals has remained stable.

The persistent efforts of the staff working overtime were instrumental in managing this high demand. Thanks to Assessor Keith Erffmeyer, Denver experienced a noteworthy performance.

The number of appeals in Denver reached an all-time high at 24,769. Out of these, 11,044 adjustments were favorably resolved, reflecting close to a half (45%) success rate.

The average value adjustment for residential properties was $47,000. This significant reduction translates to about $200 annual savings in property taxes for homeowners.

These figures underline Denver’s appealing property rates and the active real estate market. They constitute a noteworthy factor for investors looking at multi-family properties.

5. Profiting from Houston’s Real Estate

Investing in Houston’s real estate can lead to substantial profits. Properties within city limits are currently in high demand.

The city doesn’t limit lot size for development projects. This means you can design projects with 40 or more affordable homes.

For each development project, a separate application is needed. Every project gets evaluated independently.

Investing in the Houston real estate market can lead to profitable returns if the right strategies and approaches are utilized.

Interestingly, there’s no cap on the amount of funds a project can receive. This is advantageous for those planning big projects.

Whether single-family homes or townhouses, the main focus should be homeownership. The style does not dictate the property type.

Condominiums and townhomes are classified as single-family developments as long as they are sold to low-to-moderate-income homebuyers.

The affordability of a home is determined by how much a homebuyer will pay monthly for mortgage and utilities.

The idea is for affordable homes to be sold to homebuyers whose income is at or below 120% of the area’s median income.

Builder financing is encouraged, providing more options for prospective buyers. However, buyers should still have the freedom to bring their own financing deals.

Moreover, the city’s financial investment will help reduce purchasing price down to an affordable fixed-rate mortgage for buyers.

If you wish to know more about application procedures, it would be best to contact your Relationship Manager for further guidance.

Noise abatement must also be taken into consideration. All projects must adhere to city code and minimum construction standards.

Avoid duplicating benefits. If the homebuyer has been approved for a certain amount, the remaining can be made up with down payment assistance.

Though no specific homebuyer education courses are required, engaging the community proactively is strongly advised.

If construction is to begin soon and you want to ensure your homes count towards affordable home deliverables, contact your Relationship Manager promptly for advice.

6. Real Estate Investments in Los Angeles

Los Angeles boasts a thriving real estate market, attracting high-end investors like Laurene Powell Jobs, widow of Apple’s Steve Jobs.

Her portfolio expansion in Malibu over the past decade marks significant transactions in Southern California’s property scene.

1. Paradise Cove: Ms. Jobs invested a staggering $94 million in a beachfront property here. This area has become Southern California’s most high-end real estate hub.
2. Significant Acquisitions: Public records reveal that she spent roughly $80 million on three neighboring properties since 2015.
3. Luxurious Properties: The newly acquired properties typically feature lavish designs, such as an L-shaped residence from the 1950s and stunning views of cliffs and beaches.

An interesting fact is that she made these purchases discreetly off-market. Each property seems to be part of her ongoing mission to expand her compound.

The value of Malibu real estate is on the rise, with Paradise Cove becoming one of the wealthiest neighborhoods nationwide. Source

Other billionaires, including WhatsApp co-founder Jan Koum and venture capitalist Marc Andreessen, have also been partaking in this investment spree. Their transactions include acquiring sprawling estates for jaw-dropping prices.

In conclusion, if you’re considering investing in real estate in Los Angeles, particularly Malibu, it could potentially yield significant returns. However, bear in mind that it’s a highly competitive market dominated by deep-pocketed investors.

7. Buying Properties in Miami

What Influences the South Florida Property Buyers?

The real estate market in South Florida is dynamic, with prices rising by 1%-16% since January 2023 in Miami-Dade and Broward counties, according to a report from the Miami Association of Realtors.

How Have Home Prices Changed Recently?

In Miami-Dade, property prices have surged with houses having a median sales price of $630,000, up from $545,000. Condos too saw a rise with a median price of $405,700.

Broward also experienced price hikes with median sale price of houses being $575,000 and condos at $275,000.

Are People Still Buying Despite Increased Prices?

Astonishingly, the surge in prices hasn’t affected the buying trends. In fact, both counties witnessed about 1% more home and condo sales in January 2024 compared to the same month in the previous year.

What’s the Current State of Supply?

The supply remains low for single-family homes with Miami-Dade having 4.4 months’ worth and Broward 3.7 months’ worth. However, the scenario is better for condo enthusiasts with 7.4 months and 6.2 months supply respectively.

What’s the Preferred Mode of Payment?

Nearly half of all properties are bought with cash transactions in South Florida, with 42.6% in Miami-Dade and 44.3% in Broward – significantly higher than the national average of 32%.

8. New York City’s Multi Family Homes

Multi-family real estate in New York has seen significantly different trends lately. Despite previous rent increase trends, a recent dip in rental rates is noted.

The Federal Reserve’s interest rate increases have escalated mortgage expenses for building owners. Contributing to these difficulties is an abundance of high-end properties in markets like Houston and Tampa.

• Lowered demand: The desire for such properties dropped off sharply in 2021 and 2022,
• Housing shortages: Despite oversupply issues in some regions, housing shortages continue to plague other areas.
• Current loan payments: Most multifamily property owners have stayed up-to-date with their loan repayments,
• Potential risks: However, a possible increase in distressed apartment loans remains a concern.

The Commercial Real Estate Finance Council reports a multifamily loan delinquency rate of 1.7 percent. This figure is alarmingly low compared to the delinquency rates for office, hotel and retail loans.

This information highlights the precarious nature of the multi-family real estate market. It underlines the need for investors to tread carefully, taking into account all possible risks and opportunities.

9. Expanding Property Portfolios in Orlando

Orlando’s potential for property portfolio expansion is immense. Housing has become a key contributor to economic unease, necessitating savvy property investments.

With large corporate landlords commanding significant market influence, new legislative proposals aim to redistribute power by encouraging sales.

Older homeowners seeking a cash influx often turn to their home’s equity. This move could potentially fuel further portfolio expansion.

Disparities in the appraisal process create barriers for Black and Latino homeowners looking to grow their portfolios. Addressing this gap is crucial.

This table outlines key factors impacting portfolio growth in Orlando’s real estate market.

Mortgage lenders are increasingly using artificial intelligence for more precise appraisals, which can enhance investment strategies.

The recent changes in condo rules are also noteworthy as they dictate various aspects, affecting both owners and investors alike.

An impressive one-third of U.S mortgages are assumable now, adding a new dynamic to the property landscape.

10. Philadelphia’s Real Estate Prominence

The essence of Philadelphia’s real estate market has always been its dynamism.

The city’s top-notch real estate agents have displayed exceptional performance in this wavering market scenario.

• Navigating Rising House Prices: The city’s property market has seen an upswing, leading to increasing house prices. This has posed a challenging environment for both buyers and sellers.
• Limited Inventory: There is a limited inventory of houses, making the market highly competitive.
• Rising Mortgage Rates: With mortgage rates on the rise, it becomes crucial for agents and buyers to strategize their investment plans efficiently.
• High Sales Volumes: In 2023, the agents with the highest sales volumes made it to Philadelphia Magazine’s annual list, thanks to Bright MLS data verification.

These factors paint a clear picture of Philadelphia’s real estate standing.

It is worth noting that individual agents had to meet a sales threshold of $9 million to get listed in the alphabetical order report. Their office locations and contact details were also shared publicly.

This puts a lot of emphasis on the professionalism and resilience demonstrated by these successful real estate agents during turbulent times.

The information serves as an educational resource for potential agents who aspire to make it big in Philadelphia’s real estate sector.

This multi-faceted insight highlights the prominence of Philadelphia’s real estate sector and helps users make informed decisions based on reliable data sources.

11. Multi Family Properties in Seattle

Seattle’s multiplex market presents a diverse selection. An iconic example is a residential property built in 2007, offering 278 units at 44% below-market rate.

The Aurora House, completed in 1996, provides 105 units with a 40% discount on the market rate. Similarly, Ballet Apartments, erected in 2007,

Offers 128 units at an affordable price of 35% below the market rate. Bellwether, boasting 115 units at a 33% discount,

Entered the scene in 2008. Mariners Point, constructed back in 1984, is another great investment opportunity with its 115 units priced

At a generous 44% below-market rate. The catchier Delridge Vine offers a whopping 80% off on its market prices for its 50 units.

Built-in 1994, it redefines affordability. Greenwood Avenue provides a cozier environment with just 30 units;

However, it still competes on rates, sitting impressively at 67% below the standard prices.

Kerry Park offers a homely feel with just 22 units but does not compromise on affordability,

Offering a 61% discount and being completed in 1991. Not to neglect NewHolly II and its whopping hundred seventeen units,

Priced at an amazing coincidence of numbers –– built in ’98 and priced at a strikingly low ’67 (%, that is).

Rainier Court took the plunge into the Seattle multiplex real estate world in 2006, providing an appealing hundred thirty units

At nearly sixty percent less than the average going prices. Vine Street and Wittenberg are two more great options,

Constructed in 2001 and 1993 respectively, discounting their rates by 80% and 67% for their 25 and 44 units.

12. Residential Real Estate in Tampa

Nestled in the heart of Florida, Tampa Bay offers a world of real estate opportunities.

The local property market is ripe with a variety of homes for sale or rent.

Local Real Estate News

There’s always something exciting happening in the regional real estate landscape.

Get your dose of these developments and stay ahead of trends.

Tampa Area Schools

Tampa is not just about homes; its educational institutions also contribute to its appeal.

The area boasts some highly-rated schools, adding value to your property investment.

Home and Garden Events

Beyond brick and mortar, Tampa celebrates home and garden events, enriching community living.

These gatherings provide unique insights into interior design and landscaping trends.

Digital Access to Property News

If you subscribe, you’ll have access to an e-Newspaper, replicating the printed paper digitally.

This resource covers real estate matters on various platforms including desktop and mobile devices.

Profitable City Investments

With careful consideration of factors such as population growth, employment rates, and property values, the top 12 cities for multifamily property investment are clear winners. These locations present excellent opportunities for real estate investors to tap into the advantages of owning multi-family properties, promising high rental income and capital appreciation potential.

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