Multi-family apartment deal volume and predictions

[Joe Potenza]

As a young investor, I have been speculating that we should start seeing some price concessions in the multifamily space. For better or worse I have yet to see many opportunities that would be classified in this bucket. Frankly I am still seeing low deal volume in the 30-60 unit range.

I am curious to what you more seasoned and experienced apartment investors are seeing? Speculation on what we should see over the next 6 months is encouraged on this thread!

[LeAnn Riley]

@Joe Potenza

 In Minneapolis starting to see deals in multifamily. Particularly in the areas that do have C class AND in the areas that had riot damage - even has spread further into what would have been considered B area - Uptown. The landlords are reporting trouble not so much in being paid rent but with renting units. The amount of rent in those areas is falling. Crime is rising.

Now....that is when there will be good deals but you need enough cash to hold through the rough time ahead. The values will come back as this is area's around our lakes in the city...that geographic plus remains. In the long run the area will be rebuilt. Be ready to hold.

I believe there will be even better deals as others said when the stimulus shakes down and the moratorium subsides on evictions. Get your cash together now. I speak about Mpls trends on my you tube in Covid times.

One more thing about C properties. If you can have Section 8, then the rent is guaranteed. Not a bad thing while you wait it out. I built a multi million portfolio in C properties with Section 8 rentals. In fact, bought condemned buildings and brought them back to life. Sold when the price got high and traded up into larger multifamily.

You just need a system to handle that class of properties to hold people accountable.