Are Investors still Investing in Multi-Family?

Question

I just wanted to kind of hear some feedback from some long term rental investors. If many of you who are still buying doors (Quadplexes) during this Covid-19 shelter in place? I kind of have an idea on the answers I’m going to receive but I wanted some insight on strategies during this time.

Any information would be highly appreciated.

Best Regards,

Any information would be highly appreciated.

Best Regards,

Arin Fowler · Answer

Looking at your market in Killeen, I think there will still be demand in the coming months for quads, specifically from military investors who are looking to occupy one of the units and use their VA loan. Military travel should resume on May 11, meaning much of the population will be selling while others are moving into the area.

Biggest consideration will be finding a quad in a C neighborhood that passes the “am I comfortable moving my family here” test. Majority of the quadplexes here are in D areas where many property managers won’t even manage.

Bryan Blankenship · Answer

@Rickey Miller Jr I'm still seeing a lot of demand and movement here in the Cinci/Dayton region for multifamilies. Every time I get a duplex or quad, I have a dozen people knocking down the door for it. With that being said, I have also seen a lot of people pull back for the time being. I did extremely well in the last recession, so either way, I'm not the least bit concerned. :)

Joe Scaparra · Answer

Seasoned investor here.  I only invest in multi-family, mostly duplexes.  I always have an eye out but my portfolio is mature and I manage all of my 19 doors plus additional 6 for my kids.  The times we're in now make it an excellent opportunity to buy real estate as long as you have the means.   I would think this is the right environment for wholesalers who have a pulse on their community.  This Coronavirus environment is going to put some people who did not plan well into a stressful place. Coming out of this crisis should present great opportunities for buyers.

If you're a wholesaler, there is no time to waste.  Get in tune with your buyers and get searching for product (properties).  If your a renter, now is the time to jump to ownership.  If you have never bought a property and are thinking of buying, absolutely DON"T buy a home, but DO BUY A DUPLEX and you will be on your way to building wealth.  Cheers.

Rickey Miller Jr · Answer

Thank you Bryan, I'm hoping to conquer this next down hill slope when we have it. I've heard a few people mention it's not really time yet to where we're in a recession judging off of the current RE market. Thank you for the kind words and will try to take advantage of this next one too!

Courtney Jones · Answer

I am not a long time investor but i just closed on a quad last week. People still want to sell during this time and I imaging some want to sell more urgently than others.

Evan Polaski · Answer

@Rickey Miller Jr, as you are probably assuming, yes there are still deals out there and people willing to do them.  I have been a "long-ish" time investor (13 years), so lived through the last recession.

If the deal makes sense, I will do it.  But honestly, I have not really seen any great deals in years.  Okay deals, yes, but no great deals.

Aaron Taylor · Answer

I personally think it's too early to buy right now.  There are no deals yet.  A few more months, maybe, but with unemployment at like an estimated 13% last week and probably climbing more this week, I can't see the advantage of buying right now.  Financing is going to get tighter leading to less buyers, and NOI is probably going to drop on most places, so values should fall in multifamily.  REIT's have just gotten crushed, so in my opinion if you're looking for 'deals' that might be the place in real estate to look right now.

Bryan Blankenship · Answer

@Rickey Miller Jr You're welcome, sir! There is definitely a ton of opportunity and money to be made if you position yourself to be able to take advantage of it when the time is ripe. That doesn't necessarily mean you sit on your hands, though. You still need to have everything in place and ready to go at a moment's notice. It took me many years to establish the relationships I have with crews, vendors, and fellow investors. If I didn't have those, I wouldn't have been able to retire at 35 years old LOL.I've already seen a lot of players drop out in the last two weeks. It'll be interesting to see who makes it through to next year!

Rickey Miller Jr · Answer

Thank you Evan, I kind of figured the answer, I'm only 25 and saw how many people will see if it has good numbers then it really won't matter for a buy and hold investor.

Rickey Miller Jr · Answer

Thank you Arin, I'm thinking for sure it's still going to be smart to look into the C class neighborhoods and have that question to keep in mind when investing. I know what areas your mentioning in the D areas here in Killeen!

Are Investors still Investing in Multi-Family?

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