Multifamily properties are the current trend in property investment. With demand for these properties of the substantial rise, real estate investors should think of making a rash to invest as returns are guaranteed. Investors, however, should exercise due diligence of research and evaluation to understand some of the key parameters and metrics that define success in multifamily investments. One of the key indicators of success is the investment cap rate, which can be used to evaluate the potential ROI and the level of risk for multifamily properties within a given area. Here are the most notable of the best multifamily markets in the country.
Tacoma in Washington
The multifamily market in Tacoma, Washington, is rising, especially given the strong economic and employment growth in the neighboring areas of Washington, including Seattle. With the employment rate growing by over 4 percent, Tacoma is experiencing a major boom in demand for multifamily real estate properties. Taking advantage of the increased purchasing power of the locals and the consequent demand for multifamily properties can guarantee good returns.
Grand Rapids in Michigan
Michigan is coming up as a major manufacturing hub. The significant growth in manufacturing jobs in the area is breathing a new lease of life in demand for multifamily properties in Grand Rapids and other neighboring areas. With the median property price amounting to just over $176,000 and a rental income rate of about $1,100 per month, investing in this market will undoubtedly give competent returns.
Orlando in Florida
Florida is generally regarded as a safe and luxurious haven for the rich and wealthy in the country. Investing in apartment properties in this area is highly likely to take advantage of the 97 percent occupancy rate of multifamily properties. Florida, in general, is the 9th strongest real estate market in the country, with a market cap rate of 3 percent. This implies a substantially lower level of risk and high return on investment.
Salinas in California
Salinas was once a rural market area that is once again bouncing back as a major economic base. The 3.2 percent rise in the local economy implies that more jobs are present in the market, more companies are being established, and thus, more people are moving into the surrounding area. Demand for multifamily properties is, therefore, undeniably high. Return on investment in this market is also lucratively high as there is a 5.4 percent net growth in rent.