Small Multi Valuation
Hello,
I have been looking at some small multi-family properties (4-10 units) and keep coming across the same thing on listings. Owners / brokers will list the property and say that the rents are well below market rate with room to move them up. Am I right to see this as a red flag? If the rents have space to go up, why hasn't the owner raised them already? Doing my own analysis of the nearby area, they usually do look under market, but I feel like there must be some other issues with the property that are keeping the returns low.
Is this a valid concern or should I just be going to see the properties and making that call myself?