Buying a 3-family property?

Question

Currently considering purchasing a 3-family property. The home was recently rehabbed and is completely vacant. The CAP And ROI are great, but I'm little weary considering the times. The area normaly has a stong rental market. Just a little worried how many people are actually looking for new apartments at the moment. If I do proceed I'm considering listing them slightly below market rate.

Dick Rosen · Answer

You didn't say where you are located but I can tell you that in my market, Phoenix AZ, rentals have not slowed down at all. Investors are buying & building as usual and we are filling vacancies without a problem. And I really wouldn't recommend advertising below market unless you just want a quick fill. It's business as usual for

Caleb Brown · Answer

Locally here we haven't seen a slow down. I'd ask a local PM their thoughts on the current rental market. People are always moving. If the ROI is good and it fits what you want than it should be ok.

Jonathan Greene · Answer

Wait, what? How are the CAP And ROI great if it's been recently renovated and is currently vacant? How long has it been on the market? If it was such a good deal, why hasn't an experienced investor picked it up? Renovated multis are usually a bad buy because you are paying top dollar in hopes of top dollar rents, but they won't correlate in most markets. You want a 3-family where you can be the value-add and pay less and increase more. I'm not sure what numbers you are evaluating, but nothing about it sounds good to me.

Matt Ziegler · Answer

Edwin,

What is your long term goal with this property? Once you determine that you can make decisions.

Buy and hold, if the numbers work why wouldn't you move forward?

If you are thinking more short term, then it might not make sense at  this time.

What market are you in?