Over-Price Multi-Family in Hampton Roads

[Ken Powell]

I notice that several of the multi-family properties for sale in the Hampton Roads area are overpriced, especially if they are in decent condition. My conclusion is that most of the agents do not know how to price multi-family and simple use the value of a single family home of similar size as comps.  Too often I see "Great cash-flowing property. Perfect for investors" but when you do the math, the property monthly income barely cover the estimated mortgage. 

This is dangerous for new investors who is working with an agent that does not understand the need to account for vacancy, repairs, maintenance, and property management fee. 

I have a lender who offers Rehab Loan at 15% down-payment if you do not reside at the property and 5% downpayment if you plan on occupying a unit in the property. I recommend using this loan because it enables you to buy a multi-family that need some repair at a good price, rehab the property to your standard and rent it out. 

Ken Powell