How to find small multifamily deals in a slow market?

10 Replies

Hey BP,

I'm currently living in Las Cruces, NM and looking for my first buy-and-hold property. I'm looking for a small (2-4 unit) multifamily that I can house hack. The issue is that barely any multifamily properties end up on the MLS; I'd say I get around 2 notifications per month that a multifamily is listed in town. I feel like I'm wasting time waiting for sub-par deals to show up on the MLS, and would like to begin trying alternate strategies to find a deal that I can make work. Do things like Driving for Dollars work for multifamily properties? It seems like Driving for Dollars is more geared towards absent single family owners rather than other investors.

What other strategies would you guys recommend? I know waiting for deals on the MLS isn't the answer!

Thanks everybody

1. Direct mail. Getting your own deals off-market will yield the best price

2. Wholesalers. In the current market cycle, take what they present with a grain of salt. Maybe two. 98% of what is presented isn't really a deal once all the numbers are factored in

Thanks for the reply @Bob Okenwa . Direct mail seemed like a large commitment when just looking for my first small deal, but maybe that strategy is worth looking more into. I do agree that connecting with more wholesalers is important.

@Will Teas MLS is very competitive and it's a total waste of time if you're looking for deals where every other investor is looking. You can go off-market and purchase a list of motivated homeowners from online sites like Listsource and start direct mailing or cold calling.

@Will Teas  

Hey Will , I live in Cruces as well I might be able to help, I have a Duplex that we are working on In Sonoma Ranch area that i am thinking of selling . send me a pm and we can talk

You could find a larger single family and rent out rooms. Or find a single family that is in an area zoned for multi-family and that is convertible to a double.

Start calling about apartments or for rent signs . Let the seller describe the unit then say wow sounds like a nice place would you consider selling the property if the terms were right ?