Seeking Knowledge: What Am I Missing Here? Mutlifamily VS. Certificate of Deposit
Hello!
Why are people paying these prices!? They have been for years! Numbers don't pencil out for a 30 year mortgage, but property still sells! If the buyers are cash buyers why don't they just put their money in a CD and earn 5%?!
Details:
I am looking at a market where for years multi-family has been selling for a 10x multiple of gross rents. With today's mortgage rates a 30 year mortgage doesn't even work! Nonetheless, the properties continue to sell!
Why?!
Who is buying these, and why?! LOL
Thank you!