Does multi family has more competition compare to single family

Does multi family has more competition compare to single family

Member since 2018 · 9 posts · 5 votes

I am looking for 5 plus unit in or around Sioux Falls.( pocket listing ) but looks like multi family got more competition compare to single family

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Andrew AdamBusiness Member
Real Estate Agent · Sioux Falls, SD · Member since 2014 · 159 posts · 111 votes
7y

Hi @Surinder Singh,

     Being an Agent in Sioux Falls it seems like for every single family that could be a rental there are 100+ people looking at it so if it is a good deal it is gone asap and can be bid up pretty high. Part of this reason is the lower barrier to entry, and that many are looking to live in it themselves. When we look at 5+ units there is really less inventory in the area so even though there are probably only a few dozen people looking at 5+ units since there is low inventory they can again be bid up or go quickly. 

    It seems to me that once you get into the 500k+ range of multifamily there are a lot less people looking in Sioux Falls. If you go 100+ units you are competing with some LARGE players, but in the 12-60 unit range I don't think there are a TON of people looking and so I would say there is less competition there.

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  • Rental Property Investor · Mitchell, SD · Member since 2017 · 57 posts · 68 votes
    7y

    @Surinder Singh

    I have 2- 4 plexes and a 11 plex. I would sell in Mitchell.

  • Member since 2018 · 9 posts · 5 votes
    7y

    I don’t know how’ is the rental market in Mitchell.i am from Sioux Falls. Currently own a 4 plex in Sioux Falls.in Sioux Falls market is pretty good. But definitely would like to know about 11 plex 

  • Rental Property Investor · Mitchell, SD · Member since 2017 · 57 posts · 68 votes
    7y

    @Surinder Singh the market is strong in Mitchell. All units are full with long term renters.

  • Member since 2018 · 9 posts · 5 votes
    7y

    Are you using a property management for  11 plex or managing by yourself? And can you send me some details on that. I can also come take a look at it 

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    7y

    @Surinder Singh

    Just look at Redin MLS. You can determine the amount of listings for SFR and Multi's (2-4), and calculate a ratio. For example, search Las Vegas MLS, and you will arrive of a ratio of 2%. For every 100 SFR, there are 2 multi's. Econo 101 will tell you that less supply will generate more demand.

    If ratio is 10%, then maybe not so much demand, thus less competition.

    Terry

  • Member since 2018 · 9 posts · 5 votes
    7y

    Thank you terry lao 

  • Andrew AdamBusiness Member
    Real Estate Agent · Sioux Falls, SD · Member since 2014 · 159 posts · 111 votes
    7y

    Hi @Surinder Singh,

         Being an Agent in Sioux Falls it seems like for every single family that could be a rental there are 100+ people looking at it so if it is a good deal it is gone asap and can be bid up pretty high. Part of this reason is the lower barrier to entry, and that many are looking to live in it themselves. When we look at 5+ units there is really less inventory in the area so even though there are probably only a few dozen people looking at 5+ units since there is low inventory they can again be bid up or go quickly. 

        It seems to me that once you get into the 500k+ range of multifamily there are a lot less people looking in Sioux Falls. If you go 100+ units you are competing with some LARGE players, but in the 12-60 unit range I don't think there are a TON of people looking and so I would say there is less competition there.

  • Member since 2018 · 9 posts · 5 votes
    7y

    Thank you Adam!! That’s  what it seems like it. That was very helpful 

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