REI MultiFamily & SingleFamily

3 Replies

When deciding to pick a property to invest in, for example a MultiFamily, what are some indicators that one looks into? Of course price, vacancy ratio in that area, rent to value return, and comparable rents, does a neighborhood play a role? If it’s near a home, purchasing a multifamily, and renting out many rooms by one is most profitable. Would this be most profitable near a college/school? Where you can rent it out to students? Does one look at such stuff? What are other things one looks at? I know there is population growth in the area, infrastructure, job increases, but what else? Thanks guys! Answers from veteran investors is gladly appreciated! God bless! Arthur Voskanyan

@Arthur Voskanyan , it's obvious you've done lots of reading. But, anything else?

The fact is, at the right price, any property could be a right deal for you!

It's just that 93.7% of all Sellers won't let you have it for the "right" price.

The trick is: finding those other 6.3%! 

[And/or, work out how much higher than the right price you're prepared to risk!]

Sure, if you want the extra stress/vacancy/costs that go with student accommodation or Air B&B, there's many who make great profits - but also - plenty who don't!

I'd be very surprised if any further responses you get here will suddenly give you a light-bulb moment, setting you on a path that you've so far been dodging. Good luck though...

Brent,

The 6.3% of sellers is a hard target I agree, but that 6.3% of sellers becomes brighter when figuring out if the seller is an owner, or if it’s a short sale, most likely banks will give it up for a lower price because of that, as well as an owner may be lenient because of personal circumstances. Lots of factors that determine if a barter price can be made! Thus making it a good deal.
Am I correct?

Thank you,

Arthur V.

Originally posted by @Arthur Voskanyan :

Brent,

The 6.3% of sellers is a hard target I agree, but that 6.3% of sellers becomes brighter when figuring out if the seller is an owner, or if it’s a short sale, most likely banks will give it up for a lower price because of that, as well as an owner may be lenient because of personal circumstances. Lots of factors that determine if a barter price can be made! Thus making it a good deal.
Am I correct?

Thank you,

Arthur V.

Yes. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here