House Hacking in Albuquerque

[Gina Dobbs]

I'm trying to buy a 4 plex, and live in one of the units.

The problem is that the rents are currently too low for the apartments to cash flow with all four units, and the rents would just barely cover the mortgage if I lived in one of the units.

I could live there practically for free but what would I do when I wanted to move? The calculator shows a negative $300 flow.

[Robert Carmody]

It's a market that is moving very quickly right now, and has been for a while now. Inventory is very tight with approximately 1/2 the number of residential properties (including multi units) for sale today as there was 1 year ago, which at that time, was a record low level. This is pushing prices up, and seems like most projections point towards prices gaining another 5 or 6% during 2021. Rental prices are also up about 5 to 6% from one year ago. Historically, our rental prices and real estate prices tend to grow at a pretty consistent and steady 2.5-3.5% each year. There is an eviction moratorium in Albuquerque right now, due to COVID, although I haven't heard of widespread issues of tenants not paying rent and refusing to move. It's something to be aware of, and a reason to see recent payment history if the building you purchase is tenant occupied when you complete the purchase and close.  

If you are waiting for something to list on the market, be prepared to move very quickly when it does, and you may be up against multiple offers, so making yours shine is important. Sellers are naturally looking for someone that is easy to work with, and pre qualified with a reputable lender.