I'm new to RE investing and planning to start in the Albuquerque Metro area in January. I've been looking at small multi-family properties on MLS. It seems that everything I've seen on the market was built in 1980 and earlier and in fairly high crime areas. Would these be classified as "C" or "D-F"?
Noob question: On paper, these properties barely cash flow. Yet, they don't stay on the market long. So, what am I missing?
Hi @Phil Banks
Welcome to BP. I have been active in Abq for the last 5+ years and own 75 units there at the moment.
You are probably talking about the International District close to the fairgrounds. I have owned a couple of 4-plexes in that area, and they were a challenge to cashflow. The area is C or D, depending on the street. The properties are usually C or D.
I have since sold those deals to focus on larger properties. Yes, I see smaller MFs sell at high prices. I would not pay more than $40-50K per unit, depending on the amount of rehab required.
But, you can still get decent deals if you look hard enough and connect with the right brokers or even owners.
I think some people are overpaying and that will come back to haunt them...
Hi @Jens Nielsen ,
Thanks for the welcome and the insight. You guessed: the International District. I will keep your price per unit guideline in mind as I pursue those small MFH. Would you be willing to recommend a broker or two?
@Phil Banks - I use David Le with Realty One. He is an incredible realtor who has helped me with each of my properties. He goes above and beyond with each transaction. If you're interested, I'd be happy to share his contact information with you.
Yes, please share David Le's contact info.