Look for Advice for First Time Multi-Family Investor

[Arpit Chhabra]

Thanks in advance for those who respond. Look for input regarding purchasing a multi-family home, that is in a growing part of town, however, there are a series of upcoming large scale townhouse/apartment complexes coming up very close to this investment opportunity. Does having new apts/townhomes deter a purchase since they will be competition, or on the flip-side does it make the area even more attractive to live in. The multifamily units are about the same size as what would also be offered in the apt/townhome complex. 

[Andrew Davis]

Arpit - all the best as you get started making this purchase.

@Ali Nichols is spot on - development is a good thing, it signals population growth, jobs, and very likely property appreciation.

Once you've honed in on a good market, basis (purchase price) is everything. @Alecia Loveless makes a great point, with cost of new construction being near or at an all time high - labor + materials + interest rates, you could be at a significant competitive advantage if you're able to offer high quality units at a lower price.

We are basis investors, and the same asset can be a great investment, or a terrible one, all dependent on what you buy it at.

Best of luck to you!