Houston, TX · Member since 2018 · 11 posts · 5 votes
Good evening! I hope that everyone is making tremendous progress on their real estate goals.
I'm a new investor and am currently looking over a duplex in my Bigger Pockets calculator that looks promising. What exit stategies have you considered and implemented with your small multifamily properties? I want to make sure that I have options in place prior to submitting an offer. Thank you for your feedback.
@Prince Gammage Have your agent put a inspection contingency in the contract so if anything that comes up during the inspection you can’t handle you can back out of the deal.
@Prince Gammage Have your agent put a inspection contingency in the contract so if anything that comes up during the inspection you can’t handle you can back out of the deal.
With any property your exit is always a sell so you need to understand max ARV for the area and property.
Small multifamily under 5 units is considered residential so it will be valued on comps not CAP rates so you need to keep that in mind when determining ARV if your going to flip.
Cashflow is important as well but smaller multifamily can trade higher depending on location and type of construction.
Good morning and thank you to everyone for your replies. I will look into the comps for this duplex to make sure that I won't be stuck holding it if I desire to sell it down the road.