Interesting market activity lately! Great time anyone considering selling

[Henry Lazerow]

The market was very slow 2-5 months ago and seems to have rapidly picked back up this is surprising as mortgage rates are still 6s owner occupant and 7s investment loans. I listed a $379k 3 unit Thursday (for 2 BiggerPockets members who I also sold the building to originally) at $150k more then it sold 3 years ago and had 17 attendees to open house and first offer came within an hour. I also noticed a 4 unit go up last week at 108 Roosevelt in Wauconda for $250k my client offered slightly over ask on it and the list agent told me it ended up going at $350k yes a whole $100k over ask, this is a beat up 4 unit of all 400 sq ft 1br units with market rents $900-950 currently all at $700-800s nothing amazing income wise.

Cap rates remain low on 2-4 unit properties. I have had a few clients look at unloading some property during these times as it can be very advantageous freeing up capital for future BRRR projects, etc. It's impossible to predict the future but I would say its safe to say rates will remain elevated as inflation proves to be very persistent in getting to the feds goal of 2% range.

[John Warren]

@Eliott Elias I do not see the real opportunity coming at all here in Chicago. Our pricing never got out of line based on historical data, and we are still a lot more affordable than areas that had insane pricing booms. The market is 100% heating up here, which is tough for new buyers looking to enter the space. At the same time, it is a great time to sell for folks who have rentals that they want to unload. 

I think the main thing to focus on right now is risk and return on equity. If you have a rental that isn't performing well, has looking CapEx issues, or is otherwise a pain, then I think this is a great time to think the herd.