Curious this boards thoughts on multi family investing in this current market. Looking at throwing some money in an LLC with a company that is purchasing a couple of apartment complexes in the DFW mid cities area. Company has a great track record and does well with their due diligence.

With the Covid curveball and its implications for sectors like commercial real estate, I'm curious what the opinions are on multi family investing in the current market. Thanks

https://texags.com/forums/57/topics/3120261

Large discussion here.

Dallas has sustained Covid well and is still growing rents despite the onslaught of supply. It's one of the most stable and hottest markets for multifamily and doesn't show many signs of slowing down.

Austin has taken a step back as supply has flooded, but Dallas has the fundamentals to just keep on adding jobs and industries. I think the next best market currently is Raleigh/Durham due to lack of supply, and even though they are building, it will be a couple years before they are stabilized.

The key though in Dallas is not merely to be in Dallas. A 70's asset in a tertiary suburb is not going to perform the same as an 80's value add asset sitting at the bottom of its comp set in a well located suburb.

Also, what is the company's strategy? Are they trying to maximize cash flow? Maximize IRR? Park money in stable assets for safe but modest gains? Are they doing value add or buying stabilized? Are they accurately estimating their Capex? You don't want them to come calling down the line.

Ed, is this a Madera deal?

Terrible idea. Well, in Houston at least. Obviously every situation is unique, but most urban areas in Texaa are so over saturated right now. Just spoke about this with someone who manages 6,000 units. Even banks comfortable with multi family lending are staying away from big projects.

Good to know and thank you for the replies. No it was not Madera

Fair. I mean huge complexes specifically. And there again each is unique, but Houston is very saturated - generally speaking.