Multi-family prospects in 2019 and beyond

[Raphael Collazo]

Great article on the current state of the multifamily investing:

https://www.nreionline.com/multifamily/cap-rates-apartment-acquisitions-take-slight-dip-first-half-2019

With ever increasing demand for multifamily properties, cap rates have continued to fall. This has caused many investors to seek out opportunities in secondary and suburban markets. What do you feel are the long-term prospects of multifamily investing? Do you believe that the increased demand for multi-families opens up opportunities in other income producing asset classes  (i.e. storage facilities, retail centers, industrial properties etc.)? Would love to hear your feedback.

[Michael Masters]

@Raphael Collazo

I think cap rates won’t rise until interest rates do. As long as borrowing costs are low, investors can still make acceptable returns with lower cap rates.

When will the Fed go back to raising rates? Probably not until next year or later.