Buying Multi in Albuquerque

Investor · Durango, CO · Member since 2016 · 7 posts · 3 votes

I live in a mountain resort town in southwest Co that saw a ton of appreciation in the last 10 years. We have a lot of equity in a single family home and are looking to flip that into 2x 3/4 plex in ABQ. I've been getting listing on the MLS for the past few months, seen some good deals, and things also sitting on the market, making me think I can make multiple aggressive offers in the 1031 window to try and find a deal.

Does anyone have any comments on the ABQ market? I like it because we are fairly close, and the numbers work. Wed be getting a property manager to handle the day to day of the property.

The goal really is to 2x+ our cash flow, I am also hoping to get a value add property to rince and repeat.

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Jens Nielsen

Investor · Santa Fe, NM · Member since 2016 · 221 posts · 152 votes

3mo

@Victor Longinotti I think me might have run into each other when I lived in Durango. I ran a meetup up there, which Eric Nelson took over.

Anyway, I've been investing in Albuquerque for 10 years and I have a lot of insight into the market, especially which areas to invest in, and what to avoid.
A lot of the affordable deals are in bad areas, so they look great on paper, but reality is very different.
Do you have some specific deals you are interested in, I'd be happy to give you feedback.

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Kate Nixon Taylor
Lender · Cary, NC · Member since 2021 · 122 posts · 29 votes
3mo
Hi Victor,
I am not sure about the ABQ market, but I am sure the brokerage I am with has some connections to some great realtors out there that could answer any questions you have.
I would be happy to talk over what to expect with financing as well. Multifamily real estate has some different guidelines and requirements than single family investments. Let's connect! Feel free to reach out anytime.
Cheers, Kate Taylor, LO
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 916 votes
3mo
Quote from @Victor Longinotti:

I live in a mountain resort town in southwest Co that saw a ton of appreciation in the last 10 years. We have a lot of equity in a single family home and are looking to flip that into 2x 3/4 plex in ABQ. I've been getting listing on the MLS for the past few months, seen some good deals, and things also sitting on the market, making me think I can make multiple aggressive offers in the 1031 window to try and find a deal.
Does anyone have any comments on the ABQ market? I like it because we are fairly close, and the numbers work. Wed be getting a property manager to handle the day to day of the property.
The goal really is to 2x+ our cash flow, I am also hoping to get a value add property to rince and repeat.

ABQ seems to check a lot of the boxes you're looking for, especially if the numbers already work and it's close enough for you to visit when needed. If properties are sitting longer, that can definitely create opportunities to negotiate more aggressively, particularly during a 1031 timeline when speed matters. I'd focus heavily on neighborhood-level rental demand and property management quality since those will have a huge impact on your long-term results. It's also worth comparing the returns to some Midwest markets, where the same amount of equity can sometimes buy more units and generate stronger cash flow. At the end of the day, I'd rather own a property with solid cash flow and a great team than chase appreciation alone.
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Jens Nielsen
Investor · Santa Fe, NM · Member since 2016 · 221 posts · 152 votes
3mo
@Victor Longinotti I think me might have run into each other when I lived in Durango. I ran a meetup up there, which Eric Nelson took over.
Anyway, I've been investing in Albuquerque for 10 years and I have a lot of insight into the market, especially which areas to invest in, and what to avoid.
A lot of the affordable deals are in bad areas, so they look great on paper, but reality is very different.
Do you have some specific deals you are interested in, I'd be happy to give you feedback.
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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
3mo
@Victor Longinotti, the more proactive the better! If the market is good and you find a replacement property you really like, get it under contract even before your 45-day identification period starts. There's nothing that prevents you from getting things moving and starting the acquisition process; you just can't officially take title to the new property until you've sold your old one. Even if you have to add earnest money or can get a contingent contract, that will help relieve the pressure of the 45-day window.

Make sure, though, that your QI (qualified intermediary) is involved before the sale of your old property. There have been multiple times I've talked to an investor with the intent of doing a 1031 after the sale. That does not work. Your QI will need to provide the proper documentation for the exchange as part of the sale and be added to the settlement statement.
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Leslie VillarealBusiness Member
Real Estate Broker · Albuquerque, NM · Member since 2021 · 67 posts · 32 votes
3mo
Hi Victor-- I sent you a PM. I would love to give you some insight into our market here in Albuquerque!
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Tony McCargar
Investor · Durango, CO · Member since 2016 · 35 posts · 23 votes
3mo
Jens Nielson: I met you at the Durango meetings years ago and still use the Excel spreadsheet you created. I would be interested in your thoughts on ABQ as well. Entering a 1031 45 day starting Thurs.
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Jens Nielsen
Investor · Santa Fe, NM · Member since 2016 · 221 posts · 152 votes
3mo
@Tony McCargar good to reconnect.
I've sent you a DM. Let's connect.
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Amir Twig
Investor · Miami, FL · Member since 2023 · 91 posts · 28 votes
3mo
Victor, the line that jumps out is "multiple aggressive offers in the 1031 window." Watch the identification rules. You can only formally ID 3 properties (or more only if they stay under the 200%-of-sale-value rule), so if you blast offers and several stick, you can box yourself in. Line up your top 3 before the 45-day clock and treat the rest as backups.
Also, to fully defer you have to replace the debt, not just the equity. Rolling a low-leverage SF home into 2 leveraged plexes usually clears that, but if you pull any cash out you create boot, so confirm with your QI before you structure offers.
On the ABQ deals themselves, two fast gut-checks on small multi: are the listed rents actual or pro-forma, and who pays utilities? A lot of older plexes there are owner-paid water/gas, which quietly eats 10-15% of NOI and makes the on-paper numbers look better than they actually live.
Are you set on 2x 3-4 units, or would one stabilized 8-10 unit pencil better given you're hiring out management anyway?
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Wright Sara
Member since 2026 · 8 posts · 2 votes
2mo
Amir's point on debt replacement is the one to anchor on — for a full 1031 deferral, matching or exceeding your relinquished property's loan balance matters as much as matching the equity, and that gets more complex once you're splitting into two properties instead of one.

That's actually where the "2x fourplex vs. one larger multi" question Amir raised at the end connects to financing directly: qualifying for two separate loans on two separate 4-plexes (each needing its own approval, appraisal, and DSCR test) is a heavier lift under a 45-day identification clock than financing one larger stabilized property. If your timeline is tight, a single 8-10 unit could actually be easier to get to the closing table in time than coordinating two transactions and two lenders simultaneously.

Worth confirming with whoever's financing this: are you underwriting both plexes with the same lender, and have they already run the numbers assuming actual (not pro-forma) rents given what Amir flagged on owner-paid utilities?

Wright Sara

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Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
2mo
Quote from @Victor Longinotti:

I live in a mountain resort town in southwest Co that saw a ton of appreciation in the last 10 years. We have a lot of equity in a single family home and are looking to flip that into 2x 3/4 plex in ABQ. I've been getting listing on the MLS for the past few months, seen some good deals, and things also sitting on the market, making me think I can make multiple aggressive offers in the 1031 window to try and find a deal.
Does anyone have any comments on the ABQ market? I like it because we are fairly close, and the numbers work. Wed be getting a property manager to handle the day to day of the property.
The goal really is to 2x+ our cash flow, I am also hoping to get a value add property to rince and repeat.

@Victor Longinotti
Sounds like you've got a clear plan. If you're targeting value-add properties through a 1031 exchange, I'd focus on neighborhoods with strong rental demand and make sure you have a good local property manager and contractor lined up before closing. Having that team in place can make the value-add strategy much smoother.
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