Multifamily Cash Investors - An amazing time..??

Question

Just closed an off-market 8 plex for a cash 1031 exchange buyer near Reno, NV in Carson City.

Transactions are extremely slow with stuff that is NOT turnkey and NOT a great deal, which fundamentally makes sense. But, this property was initially listed at $1.6mil and came off the market.

I tracked it and heard from the property manager they may take $1.3mil, but they didn't even flinch at $1.2mil cash, and we got it done.

What are you guys seeing in your market?

Robert Rixer · Answer

Nice play, congrats on the deal. Cash is always going to be king, but the delta is definitely more pronounced in higher interest rate environments.

Mike Rutherford · Answer

Congrats on closing that off-market 8-plex in Carson City—what a steal! Snagging it for $1.2M cash after it languished at $1.6M is a textbook hustle move, and kudos for tracking it down through the property manager. That 1031 exchange buyer must be thrilled with a turnkey deal like that near Reno. As the CFO of a developing firm, I’m loving the play-by-play—shows how patience and off-market grit still win in a slow market.

You’re spot-on about transactions dragging—non-turnkey, overpriced stuff is just collecting dust right now. Buyers want cash flow out of the gate, not fixer-upper headaches, especially with interest rates pinching. In Carson City, $1.2M for an 8-plex (assuming $1,200-$1,500/unit rents) works out to a 7-8% cap—solid for NV, where turnkey multis are gold. We’re seeing similar vibes elsewhere: deals move fast when they’re priced right and ready to roll.

In our world—rural southeast US (Georgia, Alabama, Carolinas)—it’s the same story. Class B multifamily (12-24 units) we develop and turnkeys at 7-8% caps. Anything needing work or priced like it’s 2021? Crickets. Investors are laser-focused on cash flow—$800-$1,000/month/unit after expenses—and won’t touch a dud. Your $400k discount echoes what we’re seeing: sellers who adjust to reality close; those who don’t, don’t.

Since you’re crushing it with off-market multis, here’s a pitch: we build and manage Class B multifamily projects in rural southeast, delivering 10% cash-on-cash returns year one, fully turnkey. Think $1.5M-$3M deals, $30k-$60k annual cash flow —no Reno price tags, just steady rural demand. Perfect for a 1031 buyer or a cash player. We handle everything—your network could plug right in. What do you say—any interest in a southeast collab? I’d love to hear what else you’re sniffing out in NV!

Sweet deal again—what’s your market showing? Slow or picky?

Cheers!

Mike

Greg Kasmer · Answer

@Jake Andronico - Just curious for you to clarify... Your buyer had a 1031 exchange funds and paid the entirety of the 8 plex purchase in cash? Were they transitioning from a smaller investment?

Jake Andronico · Answer

@Robert Rixer

Agreed! There are some awesome deals to be had out there. There's a 38 unit fully renovated likely willing to sell at over a 7 cap. Because of the size and price, can't move it...

V.G Jason · Answer

The amount of folks struggling right now is insanely high. America is full of quiet & desperate strugglers; you wake up one day and see someone or something failed. There's no noise before.

They don't like to call for help. Lots of MFs in lots of areas if you reach out, or have reached out, they're all coming back. Opex has been a huge hit to most property owners in all shapes and forms, myself included, but to know to keep your back wide enough to cover your own you'll be able to navigate these waters just fine.

Noticing a lot of cries for help on 5 unit places. Too large to be a normal convention loan, but not big enough to be tasty for an investor that wants some size. I'm getting some runway in this area.

Jack Pasmore · Answer

@Jake Andronico

Congrats on the deal, Jake! Locking in at a discount like that is a textbook play on patience and striking at the right time. Well done. In Central Florida, we’re seeing similar trends. Sellers who were holding out are starting to adjust, especially for cash or creative terms. In our multifamily ventures, we’ve noticed most buyers we work with don't act on emotion & are quick decision-makers; When a deal makes sense, they move fast. As you know in many real estate deals, the money is made at the buy.

Personally, I'm focused on off-market deals where we can create value.

Curious—how did you frame your offer to get them to drop without hesitation? Always good to trade insights with someone who knows how to work a negotiation.

Jake Andronico · Answer

Greg, yes. They were able to do a reverse 1031 exchange because they had the funds up front to execute the replacement property first, then sell the relinquished property. It was a single family home in San Jose that he bought 40+ years ago. Buying properties back then in the Bay Area and doing nothing turned out to be an amazing wealth building strategy :) But, it more than tripled his net monthly income making this move!

Jake Andronico · Answer

@Jack Pasmore

Just kept checking in and the property manager threw out that number. Because it was cash, they reacted quickly. I also learned they had a $50K water repair a few months earlier, which likely made it more attractive.

Multifamily Cash Investors - An amazing time..??

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