Value of Multifamilies

[Stephen Rinaldi]

I'm predicting here, and maybe I'm a victim of the moment, but I'm not seeing solution for 2 items in our country.  Housing affordability for first time buyers/middle income earners and supply of housing.  Im sure there are areas that this doesnt apply to but generally speaking I dont see any solution for these issues on the horizon.

Considering this issue, and the flexibility that Fannie Mae has released about a month ago making 2-4 units, financed by a 5% down on a primary residence, Im thinking that the most valuable piece of real estate will be 3-4 unit. Triplexes and Quadplexes were basically investor only for the last 2-3 years, because of FHA self sufficiency test caused so many issues, now that these homes can be marketed to 5% down client conventionally its basically 5x their market... Much of the public IMO has not caught on, but as it becomes common knowledge that 5% down conventional works on 2-4 units, expect a bump in competition and subsequently value.