Look at current and future job growth as key factors when evaluating a market for multifamily purchases. To research opportunities I have traveled to Reno, Albuquerque, Phoenix, Seattle, and Los Vegas. Without exception job creation/population growth seemed to be the common fundamentals that told the tale. It seems that folks would move to hell if they could get a job.
That’s why I’m so strong on Portland. We’ve seen good job growth on a consistent basis here for years and the promise of the future is for the pattern to continue or accelerate.
For those that are dour about the current multifamily market…remember that while Cap Rates are decompressing currently, there are many properties that were purchased at the average 8.3 Cap in 2002. They would now trade at a 6.50 Cap. Do the math: 8.3 divided by 6.5 equals a 28% increase in value even if NOI only stayed constant. The truth is that this market enjoyed significant increases over that period and many Portland multifamily investors have huge sums of redeployable equity, and this is the time to act.
Contact me for equity redeployment information now at: rick@rosecitycre.com
There’s an old joke in the oil business: An oilman died and got up to heaven.St Peter said, “There’s no room, we have too many oil men. The old oil man thinks for a minute and says “mind if I say something ot everyone.St Peter said “fine,please.” The oil man shouts “oil discovered in Hell.”The place empties out and the two are standing there alone. St Peter says “Go ahead, plenty of room now”. The old oil guy says “No,I think I’ll go with the rest of the boys-might be some truth to that rumor after all.” Nice commentary though.