How Did You Find Your Last Multi-Unit Deal?

Question

Hi All,

I'm in the market for my next multi-unit property. I currently have two SFH rentals and two duplexes. All of these were purchased pre-covid, and with the exception of one, all were found on the MLS. Looking now though, obviously good multi-unit deals are much harder to find on the MLS than they were several years ago. I remember back in the day I could pretty easily find deals on the MLS that weren't in high crime areas, where the numbers really made sense. Now it seems very different.

So my question is, for those of you who have closed on residential multi family deals recently, have you been finding these on the MLS or elsewhere? I'm trying to determine if I should focus my efforts more on the MLS or off market. Thanks in advance for any feedback.

Robert Rixer · Answer

A lot of multifamily's especially larger ones will transact outside of the MLS. Check Crexi and Loopnet as a start. A lot of commercial/multifamily brokerages will only advertise their listings on their own website so identify who these prominent multifamily brokerages are in your area and subscribe to their email list or just check their inventory periodically. That's a good start.

Greg Kasmer · Answer

Tim - Happy to connect and brainstorm if you'd like. I invest outside of Philadelphia in the suburbs and my las quad was found on the MLS. However, I'd like to think I have several "sticks in the fire" to find deals including: MLS, commercial brokers like CBRE and Marcus and Millichap, boutique brokerages houses, off-market campaigns via email or direct mail, wholesalers, turn key operators, etc.. I think you have to have several strategies/channels going consistently. Good Luck!

Dan Thomas · Answer

@Tim Porsche

MLS has tons of deals in my market. They are all distressed and you will need to work for them. With the level of competition right now I don't see any turn key style properties that fit my investment criteria on the mls anymore.

Look for properties that have sat 3-6 months and figure out why. Then figure out if you want to deal with whatever reason they are sitting (deferred maint, problem tenants, deed issues,etc). Determine if you want to deal with those headaches and what a good deal looks like from there.

Mike Paolucci · Answer

@Tim Porsche When I was an OOS investor (started in 2021 out of San Francisco, CA), I relied on my investor focused realtor in my target market. They were able to help me find some pretty good deals that have provided some great returns as the years have progressed. The key for me was having the right teams in place (realtor/lender/property manager) to help me find / fund and stabilize the properties.

Let me know if you have any questions.

Rebecca Graziano · Answer

I am in the same situation, curious to hear other comments!

I am using an app for wholesale listings in my area but even those won't cash flow as buy/hold (it is more for fix/flip). I use a paid database to scan for offmarket properties and direct mail marketing but no luck so far after 3 months of outreach. I am on several mailing listings for note deals but lately, they are usually 2nd position or high LTV so I am not interested. I even got an email from a private lender offering a loan AND the collateral due to the borrower burning through capital and now they are stuck with it.

My PM told me I am better off putting my money in a HYSA; a few realtors I have spoken to are just desperate to make a commission... no thanks!

How Did You Find Your Last Multi-Unit Deal?

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