Selling Multifamily properties? Is it a bust?

[Nikki Closser]

Hi! I've been devouring the podcasts and reading blog posts and forum posts to learn as much as possible while we hunt for our second deal. First property was our previous primary home in Seattle (White Center) that grew appreciation like crazy, so we kept it as a rental and now have a HELOC for our next deal.

After everything we have learned, we want to start with BRRRR 2-4 unit MF where we now live in Michigan. I was feeling great about this until seeing how MF units sit on the market here for SO LONG. And I'm watching prices just drop lower and lower. Great for buying!

But, when looking at an exit strategy for when we want to scale up and sell these down the road, it scares me to see this. The last thing we want is to then be stuck and not be able to scale. 

What are your thoughts on this?? Thanks so much!

[Ivan Barratt]

Sounds like you might be looking in the wrong market. I own nearly 3,000 apartments now but I started BRRRR'ing duplexes before they even called it that. My strategy, buy in tough to find markets where's there's strong demand or on the edge of these markets IF they're geographically expanding. Find the most distressed, neglected off market duplexes in these markets and start calling on owners. Build a crm around it so you can stay in touch with sellers who may not be ready to sell just yet. Nicer properties with solid income from solid tenants will typically always have buyers.