Bessemer, AL · Member since 2014 · 581 posts · 32 votes
It sure seems like that. I took a trip through different areas outside of town looking for multifamily homes and a few apartments. I did not see not one multifamily home in a decent neighborhood. I searched through Zillow, Loopnet, and listed homes and found nothing in the nicer part of town. I passed though different areas today. Every community looked like trash.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
A lot of small mulifamily owners incorrectly assume that deferring maintenance will save them money (it doesn't in the long term) that leads to the deterioration of buildings, also these units tend to have some of the cheapest rent in town and can be poorly run. The larger properties in the 100s of unit range tend to be owned by larger companies who have developed systems to maximize returns over the long run. Also multifamily properties in a lot of areas tend to be older housing stock, builders nowadays can put in the same effort and sell townhomes or condos to owner occupants which are often more profitable for the builder.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
A lot of small mulifamily owners incorrectly assume that deferring maintenance will save them money (it doesn't in the long term) that leads to the deterioration of buildings, also these units tend to have some of the cheapest rent in town and can be poorly run. The larger properties in the 100s of unit range tend to be owned by larger companies who have developed systems to maximize returns over the long run. Also multifamily properties in a lot of areas tend to be older housing stock, builders nowadays can put in the same effort and sell townhomes or condos to owner occupants which are often more profitable for the builder.
Bessemer, AL · Member since 2014 · 581 posts · 32 votes
6y
@Aaron K. That is what I saw in all the areas. Every apartment and every small multifamily home were in the gutter. Even some company owned apartments looked like trash, but they were less than the 100 units. Those skyrise building type of apartments seem like that would be where the real money is. They are just hard to find around town that are available.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
6y
It depends on your market. In my area we have numerous multifamily properties in the nicer parts of town. The rents are high and that incentivizes people to convert larger properties into multis.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
@Taylor L. I see that more on the East coast as older cities like Richmond have gentrified, and correct me if I'm wrong but I'd guess that the properties are still on the older side even though they are in good areas.
@Taylor L. I see that more on the East coast as older cities like Richmond have gentrified, and correct me if I'm wrong but I'd guess that the properties are still on the older side even though they are in good areas.
That's true, a lot of Richmond City proper is older buildings. It's much cheaper to convert those old buildings to multis than it is to knock them down and build new. We are seeing new construction in some gentrifying areas where the density wasn't high enough to meet the demand.
It depends on your market. In my area we have numerous multifamily properties in the nicer parts of town. The rents are high and that incentivizes people to convert larger properties into multis.
I do not have that in my market. All the neighborhoods are very poor where multifamily homes are located.
Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
6y
@Tony Marcelle@Aaron K. is definitely on the right track. Neighborhoods become bad when property owners don't care, don't invest, don't upkeep, don't screen. There are plenty of examples out there across the country of beautiful 100-200 year old neighborhoods with parks, and tidy fronts, and aged buildings well maintained. Be the change you want to see!