Multifamily property value during recession

[Robert Clark]

Hi All,

Quick question for people who have owned investment property during 07-09 or other downturns.

How was your property value affected? How much of an estimated percentage did it drop? Do recent property comps still hold value during this time?

For example, an upcoming block/neighborhood where every property is selling for 289k, 295k, 300k, 310k. 6 months from now the market slows up, would these properties on this block still sell for around 289k-310k or will the value drop significantly lower? Estimated percentage?

I’m investing in Chicago btw. Small supply of quality rehabbed properties, but lots of demand. More ppl looking to buy than ppl looking to sell. For those reason, I’m “assuming” the nicer upgraded properties won’t lose much value, but please correct me if I’m wrong. I definitely wouldn’t sell during a downturn so I’m not worried, just curious as to how values are affected.

Thanks,

Robert

[Charles Carillo]

@Robert Clark

The value of your property only really matters when; buying, refinancing or selling. If you are not doing any of these it should not matter. My properties did go down in value during 07-09 but I was not selling so it did not make any difference. I do not think any properties are really going up in value during a recession unless there is a value-add happening but some values and areas will hold their value better than others.