Drop in Sales Price for Boyle Heights Multifamily Units
Greetings All,
I have noticed recently that multifamily properties in Boyle Heights are being listed for sale at very competitive prices. At surface level it seems like the general pricing for Multi's have declined in Boyle Heights since 2016. Not exclude , I see that the Multifamily's are listed at lower prices because they are being sold as is, fully occupied, and rent controlled. The pricing makes sense when considering these factors but do Appraisers factor in the same variables? Would a Quadplex sold for $700,000 under these circumstances hurt the value and potential equity of a triplex that was purchased, fully vacant, for $650,000, 1 year prior? Do appraisers price in these circumstances or do they only care about the selling price, square footage, lot size, and number of units? I am starting to think about my next maneuver and I am a little concerned about the effect that these competitive prices will have on my investment. Thank you very much.
Best,