Multifamily Value-Add or Stabilized???

1 Reply

Wanted to go out to the bigger pockets community

Would you rather a value-add deal or a stabilized deal?

Why?

If you were going to buy a 50 unit complex or bigger what type of deal would you wan to do. Also if anyone has a deal they want some help looking at or might be too big for them to take down post it here.

It depends on how much risk you want to take, and what kind of return you expect. 

Stabilized is generally going to be safer but offer a lower return. It will probably be easier to get financed. 

Re-positioning a value add is riskier so you should be buying at a price that has the potential for grater returns.  The value add will take more of your time and personal involvement that a stabilized property. It will also likely take more of your own cash (or equity partners)

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