🎙️ Introduction
Since 2006, Anna Myers has been investing long-distance, starting with single-family homes and land before moving into multifamily. Today she and her investors focus on value-add Class C properties, where targeted improvements can force appreciation and generate strong returns. In this session, Anna breaks down her multifamily market evaluation criteria, explaining how she underwrites markets with a clear focus on jobs, income, housing supply, and long-term fundamentals.
📌 Key Takeaways
✅ There Is No National Market – Each metro area is unique, shaped by its own economy, employers, and demographics.
✅ Jobs Drive Everything – Job growth, multiple strong employers, and diverse industries are the #1 factor for a healthy multifamily market.
✅ Income Thresholds Matter – A median household income of $40,000+ ensures tenants can afford rents at 3x income ratios.
✅ Unemployment Benchmark – Target neighborhoods with unemployment under 8%.
✅ Housing Supply Trends – Understand how much Class A inventory is being built. Oversupply trickles down, creating vacancies in B and C properties.
✅ Price-to-Rent “Goldilocks Zone” – Ideal range: 14–22. Below 14 → tenants can buy; above 22 → difficult for cash flow.
✅ Rent Growth – Cap assumptions at 4% conservatively, even if forecasts are higher.
✅ Median Rent Floor – Avoid markets where median rents are below $800; collections become difficult.
✅ Path of Progress – Look for rising incomes before housing prices spike.
✅ Laws & Regulation – Favor pro-landlord markets to reduce risk of tenant abuse of the system.
✅ Occupancy Rates – Watch both physical and economic occupancy; under 95% signals potential collection problems.
⏱️ Underwriting Criteria Framework
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Job Market – Growth, employer count, industry diversity.
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Median Income – $40k+ household income baseline.
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Unemployment – Below 8%.
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Housing Supply – Track recent and pipeline construction.
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Price-to-Rent Ratio – 14–22 sweet spot.
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Rent Growth – Conservative cap of 4%.
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Median Rent – $800+ floor for viable collections.
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Path of Progress – Rising incomes vs. lagging housing prices.
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Tenant Laws – Prefer landlord-friendly jurisdictions.
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Occupancy Rates – Aim for 95%+ economic occupancy.
