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Best US Cities to Invest in 6–20 Unit Multifamily Properties Under $2M (2025 Edition)

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If you’re hunting for 6–20 unit multifamily deals under $2 million, you’re likely asking: Where can I get the best combo of cash flow and appreciation, without ending up in a risky or landlord-hostile market?
We’ve crunched the latest rent growth, cap rate, and price-per-unit data and overlaid it with livability and landlord-friendliness. The result? These are the best US cities to invest in where smaller multifamily properties still make financial sense and make your life as a landlord easier.

Best US Cities to Invest

Kansas City, MO

  • Why it works: Kansas City offers solid cap rates, stable rent growth, and a business-friendly climate.
  • Cap Rates: 5.5%–6%
  • Rent Growth: ~3.5% YoY
  • Pricing: $100K–$160K per unit
  • Property Example: 8-unit brick buildings often trade for $1.1M–$1.3M
  • Livability: Top suburbs like Overland Park and Lee’s Summit have excellent schools and low crime
  • Investor Tip: Great city for both long-term holds and value-add plays.

Columbus, OH

  • Why it works: Fast growth, major employers, and a large student base drive demand.
  • Cap Rates: ~5.75%–6%
  • Rent Growth: ~3.1% annually
  • Pricing: ~$150K–$200K per door
  • Property Example: 10-unit assets in Clintonville or Old North near OSU can sell below $2M
  • Livability: Family-friendly, strong school systems in suburbs like Dublin
  • Investor Tip: Solid bet for newer investors with long-term buy-and-hold goals.

Indianapolis, IN

  • Why it works: Great supply of small multifamily buildings and a smooth permitting process.
  • Cap Rates: ~5.75%–6%
  • Rent Growth: ~2.5%
  • Pricing: ~$130K–$180K per door
  • Property Example: 6–12 unit properties in Irvington or Garfield Park can be found for $1.2M or less
  • Livability: Excellent schools in Carmel and Zionsville
  • Investor Tip: Look for light rehab opportunities—strong cash-on-cash returns.

Pittsburgh, PA

  • Why it works: A transition city with upside. Solid healthcare and tech job base.
  • Cap Rates: 6.25%–6.75%
  • Rent Growth: ~3.0%
  • Pricing: $120K–$180K per unit
  • Property Example: 12-unit buildings in South Side or Mt. Washington for ~$1.5M
  • Livability: Excellent family neighborhoods like Mt. Lebanon
  • Investor Tip: Strong appreciation potential as the city densifies.

Cleveland, OH

  • Why it works: High cap rates, affordable entry points, and robust healthcare jobs.
  • Cap Rates: 6.5%–7%
  • Rent Growth: ~3%
  • Pricing: $100K–$140K per unit
  • Property Example: 10-unit deals in Lakewood or Ohio City often list under $1.5M
  • Livability: Good schools, parks, and low property taxes
  • Investor Tip: Look for properties near Cleveland Clinic or Case Western for stable demand.

Oklahoma City, OK

  • Why it works: High cash flow potential, pro-landlord laws, and low barriers to entry.
  • Cap Rates: 6.25%–6.75%
  • Rent Growth: ~3.2%
  • Pricing: $80K–$120K per unit
  • Property Example: 8–12 unit buildings in NW OKC or Edmond range from $800K–$1.5M
  • Livability: Low crime suburbs like Mustang and Edmond, a family-oriented vibe
  • Investor Tip: Very landlord-friendly state; rapid eviction process if needed.

Bonus Pick: Huntsville, AL

  • Why it works: Tech and aerospace are booming here, and demand is growing fast.
  • Cap Rates: 6%–6.5%
  • Rent Trend: Stabilizing after rapid growth (slight dip in 2024)
  • Pricing: $120K–$150K per unit
  • Property Example: Newer 6-unit townhome-style multifamily for ~$1.1M
  • Livability: Very low crime, great schools, zero state rent control
  • Investor Tip: Watch supply pipeline—stick to infill or older neighborhoods with less new competition.

Final Thoughts

All of these markets offer strong fundamentals, manageable entry prices, and decent liquidity if you decide to exit. Among them which one is the best US cities to invest for you, depends on your strategy:

  • Cash Flow Focus? Look at OKC, Cleveland, or Indianapolis
  • Appreciation Play? Columbus, Pittsburgh, and Kansas City are your bets
  • Balance of Both? Columbus or Kansas City hit the sweet spot

Data Sources

Selling Your First Rental Property? How a 1031 Exchange Can Save You Thousands and Boost Your Wealth

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If you’re thinking about selling your first rental property, congratulations — that’s a huge milestone! But before you sign on the dotted line and pay a big tax bill, you should know about one of the smartest financial moves available to real estate investors: the 1031 exchange.

Used correctly, a 1031 exchange can defer your capital gains taxes and help you grow your portfolio faster — without giving the IRS a large chunk of your hard-earned equity.

In this guide, we’ll break it down step-by-step, so you feel confident and ready.

What Is a 1031 Exchange?

A 1031 exchange (named after Section 1031 of the IRS Code) allows you to sell an investment property and reinvest the proceeds into another “like-kind” property — without paying taxes immediately on any capital gains.

Key point:
 It’s not just for commercial investors. Small residential landlords — like you — can absolutely use a 1031 exchange to build wealth.

This strategy lets you keep more money working for you, growing your portfolio faster instead of shrinking it with each sale.

Why It Matters: How Tax Deferral Builds Wealth

Let’s say you sell a rental property for $400,000.
 You have $100,000 in capital gains.
 If you sell normally, you could owe $20,000 or more in taxes right away.
 That’s $20,000 gone — money you can’t reinvest.

But with a 1031 exchange, you keep the full $100,000, roll it into a bigger or better property, and let it compound over time.

Now imagine doing this two, three, even four times over the next decade. The wealth you build — without sacrificing your gains to taxes — can be life-changing.

Step-by-Step Guide: How to Execute a 1031 Exchange

Step 1: Confirm Eligibility
 Your current property must have been held for business or investment purposes (rentals qualify!). The new property must also be used for investment — not a personal vacation home.

Step 2: Work With a Qualified Intermediary (QI)
 You cannot take possession of the sale money yourself. A QI is a licensed third party who holds the funds and facilitates the exchange.

Step 3: Sell Your Property
 Close the sale and transfer the proceeds directly to your QI.

Step 4: Identify Replacement Properties (within 45 days)
 You must identify up to three properties you’re considering buying. This must be in writing to your QI.

Step 5: Close on Your New Property (within 180 days)
 Finalize your purchase using the funds held by your QI. To fully defer taxes, reinvest 100% of your sales proceeds and match or exceed the previous mortgage amount.

Step 6: Report the Exchange
 You’ll need to file IRS Form 8824 with your tax return for the year of the exchange.

Watch Out For These Common Pitfalls

  • Missing deadlines (the 45-day and 180-day windows are non-negotiable).

  • Touching the funds yourself (even accidentally).

  • Only reinvesting part of the proceeds (you’ll pay taxes on the leftover “boot”).

  • Wrong use (personal use properties don’t qualify).

A little planning goes a long way to ensure your exchange is valid and stress-free.

How FourCasa Supports Your 1031 Exchange Journey

Managing a 1031 exchange means handling a lot of moving parts — sales agreements, closing statements, replacement property documents, deadlines, and financial reports.

That’s where FourCasa comes in.
 As a real estate finance automation platform built for landlords, FourCasa helps you:

  • Automatically organize documents like closing statements and contracts.

  • Track your properties and transactions in real-time.

  • Stay audit-ready for tax season — with CPA-friendly reports.

  • Spot missing income or expenses before they become a problem.

Instead of digging through emails or folders, your entire portfolio stays at your fingertips — so you can focus on making smart moves, not bookkeeping headaches.

Final Thoughts

Selling your first rental property can feel overwhelming — especially when you realize how much tax you might owe. But with a 1031 exchange, you have a powerful tool to keep growing your wealth, buy better properties, and accelerate your journey toward financial freedom.

Whether you own one rental now or have plans for five more in the future, understanding — and using — the 1031 exchange is a game-changer.

And if you want a little help staying organized along the way?
 FourCasa is here to help make your rental finances effortless, so you can focus on what matters most: building your future.