Buying multi family, what do you look for?

Question

Interested to see how the multi family market is doing in today's economy. When you're looking to buy, what will be your buy criteria?

Steve Morris · Answer

Can only really talk Portland METRO. Am broker, so this is what I hear:

1) Do NOT want in Portland proper. Too many city council members's using the "rent's too d*** high" as a campaign plank

2) Looking for upside from mismanagement. Of course, this punished the good operators that stay at the market.

3) Suburbs with large employers or further out suburbs that are growing with little new construction

4) Utility billing potential since water is the fastest growing expense here

5) No major rehab projects, the rent growth market looking a little gloomy for the next few years to amortize the cost.

6) 3 bed and 2 bed/2bth are appealing due to lower turns and relatively lack of supply. We have a bunch of expensive stuidos now.

1 Reply