{"id":97714,"date":"2021-05-27T09:30:00","date_gmt":"2021-05-27T15:30:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=97714"},"modified":"2024-02-27T14:42:55","modified_gmt":"2024-02-27T21:42:55","slug":"finding-multifamily-properties","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties","title":{"rendered":"How &amp; Where to Find Multifamily Properties For Sale"},"content":{"rendered":"<p><iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC2240222363&amp;light=false\" width=\"100%\"><\/iframe><\/p>\n\n\n\n        \n\n\n\n\n<p>The multifamily sector is hot right now. Savvy real estate investors are hungry for the yields, cash flow, and efficiencies apartment buildings and multifamily properties can offer. Meanwhile, more residential <a href=\"https:\/\/www.biggerpockets.com\/blog\/single-family-investing-benefits\" target=\"_blank\" rel=\"noreferrer noopener\">single-family investors<\/a> are recognizing the benefits of this asset class and looking to move up into it. So where do you find multifamily properties for sale?<\/p>\n\n\n\n<p>The desirability of these larger real estate investments means it&#8217;s not as easy to find such listings today as it was just five years ago, but it is still possible. You just have to know where to search and who to contact, plus be willing to put in the work and go the extra mile.<\/p>\n\n\n\n<p>So, where to find multiunit properties for sale? Brokers can be very valuable here. Let them do all the legwork, finding and negotiating the deals, and helping to carry the process on a multifamily property through to closing.&nbsp;<\/p>\n\n\n\n<p>Even though brokers are sometimes hard to work with and can be expensive, you still want to be on their radar. Meet with them, put them on the job of finding you the right properties, and follow up.<\/p>\n\n\n\n<p>Follow-up is key. Respond when they email you multifamily homes for sale from their search, even if you don\u2019t want what they dug up. Tell them why these properties did not work and what interests you more. That will engage them, keep the dialogue going, and build the relationship.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Find Multifamily Investment Properties&nbsp;<\/h2>\n\n\n\n<p>Where to find multifamily properties for sale? It is often harder for investors to find duplexes and other multifamily properties for sale when compared to condos, single-family homes, new construction, raw land, commercial properties, and other potential investment properties.<\/p>\n\n\n\n<p>That&#8217;s partly because many multifamily properties are off-market. Expect to find more time searching for the best property for your needs and using less conventional methods to find multifamily construction.<\/p>\n\n\n\n<p>Here are some methods for finding multifamily homes, whether or not they are currently for sale.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Use an investor-friendly real estate broker<\/h3>\n\n\n\n<p>Real estate professionals have a good grip on local real estate markets. Consider forming a relationship with a local Realtor who handles multifamily properties and specializes in working with investors. This could help you be among the first to get in for a look when a property with multiple units goes on the market, as Realtors have developed networks.<\/p>\n\n\n\n<p>One of the advantages of BiggerPockets\u2019 <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" target=\"_blank\" rel=\"noreferrer noopener\">Agent Finder<\/a> is the ability to search for and match with an investor-friendly real estate agent to find multifamily homes for sale. Pick your location and markets, share your investment criteria, and get matched with an agent to help you find the right multifamily property.<\/p>\n\n\n\n<p>There are other advantages to working with a Realtor. Investors get a great opportunity and an open door to their contacts. This partnership can help you build the portfolio you strive for and potentially open up off-market deals on a multifamily property that has less competition to purchase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Use the MLS<\/h3>\n\n\n\n<p>While all other investors have access to the MLS, don&#8217;t discount a search of the MLS to look for multifamily properties for sale. Properties with up to four units may be found in the MLS. Use filters to search for duplexes, triplexes, quadruplexes, and <a href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-607\" target=\"_blank\" rel=\"noreferrer noopener\">apartment buildings<\/a>.<\/p>\n\n\n\n<p>Keep in mind that a building with five or more residential units is considered a commercial property. Commercial property listings are found under commercial sale or commercial lease.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Drive around the area<\/h3>\n\n\n\n<p>Driving around local neighborhoods provides great insight into potential multifamily properties. Search for \u201cfor rent\u201d or \u201cfor sale\u201d signs.&nbsp;<\/p>\n\n\n\n<p>Get off the main street and search the side roads. You may even want to search in the commercial district because you never know where suitable multifamily homes might turn up. It&#8217;s not odd for a multifamily home to be located in an area dominated by commercial real estate.<\/p>\n\n\n\n<p>Also, keep an eye out for multifamily properties that appear out of place in the neighborhood or aren\u2019t well taken care of. With some minor rehab, you can increase the occupancy rate and reduce vacancies to create the multifamily properties of your dreams.<\/p>\n\n\n\n<p>Write down the addresses as you drive around to check home ownership records, and you might find a deal. Take photos at each location for your records.<\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_64ca565049a80: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_64ca565049a80\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Try to Find Off-Market Multifamily Properties&nbsp;<\/h2>\n\n\n\n<p>Multifamily properties you might want to purchase aren\u2019t always listed for sale. Here are some methods to search for them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Direct mail<\/h3>\n\n\n\n<p>Another tip you can try involves mailing information directly to owners of multifamily homes. You can buy lists of owners and their contact information, or search for the information yourself.<\/p>\n\n\n\n<p>With direct mail campaigns, you should expect to receive only a few responses. It&#8217;s still a good way to find multifamily homes that aren&#8217;t currently on the market. Maybe the owners had not thought about putting the property up for sale, but an interested investor might obtain the multifamily home for a good price.<\/p>\n\n\n\n<p>Examine what works best for you and what marketing campaigns are more successful than others.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Look through old ads<\/h3>\n\n\n\n<p>It\u2019s frustrating for landlords to have a vacant property or consistently search for a new tenant. By calling old \u201cfor rent\u201d listings, you might find owners ready to sell and make a deal.<\/p>\n\n\n\n<p>Similarly, old FSBO listings, or \u201cfor sale by owner\u201d ads, might lead to a deal with someone desperate to find buyers. This is an opportunity to find multifamily homes for sale at a very good price.<\/p>\n\n\n\n<p>You can often get an edge by browsing the listings for available rental units in the town or neighborhoods you\u2019re focused on. Search for listings that are rented for lower-than-expected amounts per month or with photos making the multifamily property appear shabby.<\/p>\n\n\n\n<p>If the owners are not interested or motivated to sell right now, keep their information. Follow up later, because circumstances can and do change.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Use public records<\/h3>\n\n\n\n<p>Use public records, which you can access for free, to find the owners of multifamily homes. Depending on the state, you should find deeds registered on the County Clerk or Registry of Deeds sites.<\/p>\n\n\n\n<p>The local building department is another site to search for the name of multifamily owners. If the land is owned by a limited liability corporation, or LLC, check the database for the Secretary of State. LLCs must submit filings with that office.&nbsp;<\/p>\n\n\n\n<p>You can also check <a href=\"https:\/\/www.manta.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Manta<\/a>, <a href=\"http:\/\/www.bbb.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">the Better Business Bureau<\/a>, and <a href=\"https:\/\/www.bizapedia.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bizapedia<\/a> to find individual owner names and contact details.\u00a0<\/p>\n\n\n\n<p>Search for these names by getting creative. Ask your network, check Facebook and LinkedIn, or make in-person visits to the property. If you can do it, in-person contact is by far the best way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Before You Get Started<\/h2>\n\n\n\n<p>Now that you know ways to find multifamily properties, you\u2019re probably ready to seek out possibilities. Before getting started, decide which of several investment strategies you intend to pursue. Here are five steps to complete before your search.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Choose your investment strategy<\/h3>\n\n\n\n<p>Before you start looking for multifamily listings, carefully consider your <a href=\"https:\/\/www.biggerpockets.com\/blog\/which-real-estate-investing-strategy-is-best-for-your-goals\" target=\"_blank\" rel=\"noreferrer noopener\">investment strategy<\/a>. It&#8217;s the basis of how you can make money on multifamily homes.<\/p>\n\n\n\n<p>There are several types of multifamily investment properties. Some investors like to keep things simple and choose a <a href=\"https:\/\/www.biggerpockets.com\/guides\/buy-duplex\" target=\"_blank\" rel=\"noreferrer noopener\">duplex<\/a> as their first-time investment. This can be a good option if you\u2019d like to manage two properties that exist side by side and share much of the same infrastructure. Tenants on both sides of the property typically pay the same amount.<\/p>\n\n\n\n<p>One of the advantages of a duplex is that you can live in one unit, lease the other, and receive a steady stream of income. It&#8217;s a good way to dip your toes into the world of multifamily property investing and find out if you have landlord chops.<\/p>\n\n\n\n<p>There is also the option to invest in an apartment complex that has a handful or even dozens of apartments. In this instance, the price for rent can vary based on square footage, bedroom count, amenities, and other factors.<\/p>\n\n\n\n<p>The type of multifamily dwelling you should invest in really comes down to your personal choice and long-term goals. You can fix and flip the property or hire a property manager to deal with the landlord&#8217;s tasks. Weigh all the possibilities and decide what works best for you before you purchase a multifamily building.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Value add<\/h3>\n\n\n\n<p>A value-add strategy is a tried-and-true method for various types of investments, ranging from multifamily homes to apartment buildings to commercial real estate. It&#8217;s also known as <a href=\"https:\/\/www.biggerpockets.com\/blog\/brrrr-pros-and-cons\" target=\"_blank\" rel=\"noreferrer noopener\">BRRRR<\/a>, for its simple precepts:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buy<\/li>\n\n\n\n<li>Rehab<\/li>\n\n\n\n<li>Rent<\/li>\n\n\n\n<li>Refinance<\/li>\n\n\n\n<li>Repeat<\/li>\n<\/ul>\n\n\n\n<p>The best property for this strategy involves a building that needs a fair amount of work. Because a great deal of renovation is needed, you can buy the property for a good price.<\/p>\n\n\n\n<p>Two other things to keep in mind:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Primary rehab rent:<\/strong> The PRR strategy is similar to the BRRRR, except that you live in one unit of the building while renovating it before seeking renters. It&#8217;s often the best deal for new investors with limited finances.<\/li>\n\n\n\n<li><strong>Turnkey:<\/strong> Multifamily homes advertised as turnkey properties are not bargains. They command a higher price but may be worth it to the investor searching for a passive investment with immediate cash flow.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Choose your location<\/h3>\n\n\n\n<p>Remember that the mantra about location holds as true for multifamily homes for sale as any other properties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Determine your budget<\/h3>\n\n\n\n<p>Figure out how much you can spend on your chosen site, including rehab and renovation. Budget carefully, knowing that cost overruns are likely.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Get your funding<\/h3>\n\n\n\n<p>Banks can provide bridge loans for financing rehabilitation projects. You can also look for <a href=\"https:\/\/www.biggerpockets.com\/blog\/8-tips-for-finding-financing-for-multifamily-deals\" target=\"_blank\" rel=\"noreferrer noopener\">multifamily property financing<\/a> via syndication or getting an equity share investor involved. If your income is relatively low, you can use future rental income as part of your loan application if you have signed lease agreements from tenants.<\/p>\n\n\n\n<p>These are just a few options to consider before you search for properties for sale. Your investment strategy for multifamily homes may vary, based on current market conditions, interest rates, and other factors.<\/p>\n\n\n\n<p>When it comes to multifamily properties, finding the gems is a numbers game. Maybe you analyze 100 multifamily homes, bid on 10, and close on one, but it\u2019s still worth it.&nbsp;<\/p>\n\n\n\n<p>With patience and a fair amount of fortitude, your search will yield the right multifamily for your investment purposes.\u00a0\u00a0<\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_b4850b99cfcd9b9a03d3565a5127aa9e\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_04e57dedc2448fabd6fc34d12546ba1b\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_3806c1c039214818ceb0057b392c09be class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ready to invest in multifamily? Get creative\u2014dig up your own deals by driving your market and using the internet.<\/p>\n","protected":false},"author":613668,"featured_media":138129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7357,7119],"tags":[],"class_list":["post-97714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-multifamily-real-estate-investing","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/97714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613668"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=97714"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/97714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/138129"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=97714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=97714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=97714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}