Is now a good time to buy a multifamily?

[Lauren A.]

Hi all,

This might sound like a silly question. I would like your input on whether you believe that now, with the skyrocketing prices, is a good time to purchase multifamily property. Here's a little background on why I am asking this question. Husband and I have been real estate investors/new developers for the last 8 years. We are pulling out money on two of our properties to buy another property. We're currently in an expensive market - Los Angeles. I honestly don't see anything on the market that seems worth it. The returns are low when you factor in legal costs, maintenance, vacancy, etc. Management doesn't even fit into the budget much of the time without going negative. When we bought in 2014 and then again in 2016 and 2017, there were still good deals out there! What are your opinions? How would you spend 300k in this market?

[Bob Okenwa]

There's never a bad time to buy a good deal. With that being said, if the numbers aren't making sense where you live, find another market where the numbers do make sense and invest there. Too many people are beholden to only invest where they live and buy properties that they can see by driving to it. It's 2022. Airplanes exist for a reason. Cell phones take video. You don't have to live down the street from your investments, especially if you're an established investor who knows what they're doing.