What are the cons to purchasing multi-family units?

What are the cons to purchasing multi-family units?

Rental Property Investor · Atlanta, GA · Member since 2020 · 1 post · 0 votes

I’m a fairly new investor and in process of acquiring a multi-family unit with 4 doors. What should I be made aware of or lookout for that may differ from purchasing a single family home?

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  • Rental Property Investor · Chicago, IL · Member since 2017 · 11 posts · 7 votes
    6y

    Make sure your numbers are spot on. In my market most MF deals are to expensive. After purchase price and taxes you barely break even, in addition if you’re financing via conventional methods you’ll use a lot of cash. The last main thing I can think of is that multi family properties appreciate at a slower rate and are less liquid. Again, just run your numbers and if you feel comfortable pull the trigger! 

  • Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    6y
    Originally posted by @Bora Yalcin:

    Make sure your numbers are spot on. In my market most MF deals are to expensive. After purchase price and taxes you barely break even, in addition if you’re financing via conventional methods you’ll use a lot of cash. The last main thing I can think of is that multi family properties appreciate at a slower rate and are less liquid. Again, just run your numbers and if you feel comfortable pull the trigger! 

    Yes, that's the main con in many places. Everybody wants them, so they are overpriced.  

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