While the multifamily real estate market has taken a hit from the COVID-19 pandemic, it’s still a very profitable area of real estate investing. Loss of income and the bans on evictions and foreclosures have made it difficult, but with things starting to return to a normal state, it might be time to get into the game.
If you take your time, do your research, and ensure that all of your bases are covered, then multifamily real estate can be a great venture for newbie investors. Here are the top areas for multifamily property investing.
- Manchester, New Jersey
Manchester has come out on top this year with a median property price of roughly $113,400, or a price per square foot of $95. It has a price-to-rent ratio of 6 and an average monthly rental income of $1,465.
- Napes, Florida
Everyone wants to move to Florida when they retire, and the housing market is apparently reflecting this trend. The median property price is much higher than Manchester (about $377,400), but the price-to-rent ratio is 10, making the average monthly income around $3,250. Why not get some sun and set up some lucrative passive income while you’re at it?
- Cincinnati, Ohio
Cincinnati is a decent middle-of-the-road choice for multifamily properties at the moment – the median property price is roughly $235,000 with a price to rent ratio of 15, resulting in an average monthly rental income of $1,300.
- Fort Wayne, Indiana
If you’re starting out without a lot of initial capital, Fort Wayne might be a good choice for you. It sports a low median property price of $93,000, but the price-to-rent ratio is only 10. The average monthly rental income is about $770, but it would be a great place to start to build a portfolio.
- Detroit, Michigan
Detroit is right behind Cincinnati as a middle-of-the-road option with a median property price of $153,000 and a price to rent ratio of 14. The average monthly income is about $923, which is why Cincinnati ranks a little bit higher.