Are you a buyer or sitting out the multifamily market?

[Arn Cenedella]

There are certainly legitimate reasons to sit out the current multifamily market:

1. Economic uncertainty with the possibility of recession

2. Increasing interest rates

3. Negative leverage due to cap rates lower the debt costs

Can’t argue with that!

But I am and continue to be a buyer for apartment buildings in the Carolinas.

Why?

1. One must put their capital somewhere. In my mind Carolina MF properties are as good a place to invest as one can find.

2. I know the markets I invest in.

3. I have a long term investing perspective and don’t pretend I can time the market -  been doing RE for 45 years and I can’t time the market - too many variables outside my control to do so.

4. The lack of affordable housing is at an all-time high and this over demand under supply won’t change anytime soon if ever.

5. Buy with proper leverage ( yes it may reduce returns a little) and with ample cash reserves ( yes it may reduce returns a little), operate the property in a professional manner and you will ride out some turbulence and profit in the future.

I’m still a buyer.

What is your perspective?