Risk Buying Multi-Family During This Time?

[David Prince]

I have found a good opportunity for a 16 unit investment well priced. I’m conducting due diligence on the deal but with the current climate wonderful if there is additional risk I should consider? Are other folks still buying during this time? How are you approaching deals differently?

[John Warren]

@David Prince if it is in the right area then I would definitely pursue it. I have several properties in the Chicago suburbs and I am not overly concerned with rental collections. My tenants have stable jobs, which is why I chose these markets in the first place. I have been underwriting for 5% vacancy for years while seeing closer to 2-3% vacancy in real life. If I miss 5% of my rental collection for the year due to Corona virus, then it is what it is. I doubt this will actually happen though.