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It is about the market. What class of property and what state/municipality. I get the numbers argument, but consider climate, property class, the government, how long it takes to evict non-payers, etc. The “numbers” can make perfect sense in excel, but the location is also extremely important—which of course you can build into a pricing model. Believe me, I’ve learned a lot the hard way in this business.
Investment properties are different than primary residences. If the numbers make sense the numbers make sense.
Its not about the market, it’s about a particular property and whether the numbers make sense.
Subject Expert
How big of multi family?
Most multi-family properties are bought with floating rate bridge debt and rate caps. Rate caps are extremely expensive right now, so most won’t cashflow.
If you have a plan for value add, it might work after the work is done and rents are increased, but that’s assuming the business plan holds true and the projections are accurate.
Anytime is a good time for multi family!
Your focus should be on the type of property. They numbers might be a little up but in the long run it would not matter for multi family
Are you looking for 5 unit or greater than 20 units?