All Forum Posts by: Sam Young

Interesting. Have not thought about it that way. Preferences vs. actual discrimination. 

Quote from @Russell Brazil:

You just ventured yourself into a fair housing issue by stating a preference for someone based on their protected class status.

When did single moms become a protected class?

Quote from @Russell Brazil:

Youre missing the part that other people are willing to pay more for the properties than you are.

2-4 unit properties are highly competitive with a huge buyer pool. Lots of buyers, plus high demand equals high price

No, I am not missing that part at all. In fact, its it the underlying question to my original post. "Why are people willing to pay more than I am?" However, it should be noted that there are several of these properties that are not selling. It would suggest that others have come to the same conclusion...overpriced.

Quote from @Alecia Loveless:

@Sam Young The only suggestion I have is to try to use some of your networking skills to connect with other owners of multi family properties and see if any of them might be interested in selling some of their properties off market.

My contractor also does snow plowing and lawn mowing as well as his contracting work for many other investors. He has been reaching out to the investors that he has “that relationship” with and asking around for me to see if any of them want to sell any of their properties.

I’ve now got a lead on an 11 unit deal and am working on getting my financing in place either for that one should it pan out or for the next ones that do become available.

 Good suggestions. Thank you. Good luck with your 11 unit deal. 

Seeing these responses validates my assumptions. I believe that I have contemplated all of the reasons mentioned above at one time or the other.  It has been a frustrating experience sitting on the sidelines with funds ready to go (at least I am getting a 5% return). I may have to pivot back to commercial deals as we are seeing sellers adjust pricing.  

Quote from @Bjorn Ahlblad:

You are not missing anything........most markets are the same. You did not mention high cost of money, crazy insurance rates, laws favoring tenants not land lords. And local ordinances shutting down short term rentals.

Don't forget 'best time to buy was yesterday, second best is today'! Have a good one!

Ok, maybe I'm not stuck in analysis paralysis. 

I like your quote at the bottom! 

Don't forget 'best time to buy was yesterday, second best is today'!



Don't forget 'best time to buy was yesterday, second best is today'!

I am a 25 year vet of commercial real estate brokerage. I have focused on investment sales my entire career, primarily stabilized income producing properties. I acquired my first MF property in 2019 (a four plex) in a 1031 exchange for around a 7% cap rate. I would like to acquire more small MF properties in the $600k to $1.5 million range as I trade out of partnerships in commercial properties. I cannot make any sense of the pricing that people are asking for MF properties in my market. Asking prices for duplexes in the areas that I am interested in run $750k and up. The only way for them to cash flow is run a AirBnB model. Even looking at it for an AirBnB, you have to aggressively underwrite (hope and wish) them to make sense from a cash flow perspective. Forgetting about cash flow for a moment, I cannot justify the pricing even if value appreciation was my only goal. The problem I see with value appreciation is that the values for these properties had a huge value run in the 2019 to 2023 period. Properties on the market today where the asking price is in the high $700k to $900k range for a duplex that would bring rent of $4000-$4400/month for long term rentals. Many of these properties sold for 1/2 of the current asking prices 2 to 4 years ago. Prior to that, the values were relatively flat for years and years. I cant find where the upside is to buy these properties. The "lot value" or redevelopment value is maxed out, the rental income potential is maxed out for the near term or longer. Brokers selling these properties point to single family residential comps to justify the asking prices. Without historically low interest rates again or significant rental increases, what will drive the value of these assets?  What am I missing in analyzing these properties? 

Quote from @Russell Brazil:

It will be on your tax returns

 Ahh! Good point. 

When applying for a mortgage is there a LEGAL obligation to disclose all income or can you disclose the income sources that will qualify you for the loan? For example, can I just disclose my employment income and not investment income? Same for savings and assets, do you have to disclose everything?  The property being financed is the collateral, so why would you need to disclose income and asset that are not needed to qualify? Note: I understand that all debts have to be disclosed. 

Quote from @John Schaeffer:

Appreciate it Ryan! 

Sam, I'd love the opportunity to assist you.

Great. What is the best way to connect?