Property Selling twice in 2-3 years

[Adam Rey]

I am looking to purchase my third property. My first two were basic SFRs. In screening several small multi families I have run across a phenomena I can’t wrap my head around. Twice I have run across locations where the property just sold in the last 2-3ish Years. Both times when I asked the seller why they were selling so quickly they gave very squishy answers such as “changing strategy” or “reevaluating portfolio”. I don’t know what to make of this but my gut says it’s a red flag even though both properties meet all of my other investing criteria. What would you think if you knew nothing else about a property except that is just sold to another investor within the last 2-3years? Means it has problems? Opportunity to get it on the cheap? Any questions you would ask?

Thanks in advance!

Adam

[Bjorn Ahlblad]

@Adam Rey congrats on getting into the game. Most places the market has been pretty boyant and people are taking profits, making changes, buying Ferrari's, whatever. It is not unusual to see properties changing hands more frequently now than in a stagnant market. I do not find it all that useful to ask sellers questions because you get the answers you cited-I have gotten 'we are retiring' a lot, and I am older than they are. Instead find your own answers by looking at the property and financials. Furthermore we are all different with differing objectives, and what works for me may not for you etc. Look for solid rental properties that will make you money now, especially those you can renovate and make even more money by raising rents to maximize your profits. All the best!