IMO, this combination of lower NOI growth and increasing interest rates will not only cause cap rates to expand / values to decline... it will also make it more difficult for owners to refinance, even out of "safe" long term fixed rate permanent debt.Personally I would not want to own leveraged multifamily assets now for this reason.  

We many a handful of them for our clients, and the combined rental income covers their expenses.

I financed this deal using a combination of cash and a line of credit.

I financed this deal using a combination of cash and a line of credit.

Recognizing the opportunity to combine steady income from existing tenants with the ability to develop the lower level for Arbol Eatery and other amenities, I pursued direct negotiations with the seller.

Recognizing the opportunity to combine steady income from existing tenants with the ability to develop the lower level for Arbol Eatery and other amenities, I pursued direct negotiations with the seller.

Recognizing the opportunity to combine steady income from existing tenants with the ability to develop the lower level for Arbol Eatery and other amenities, I pursued direct negotiations with the seller.

Recognizing the opportunity to combine steady income from existing tenants with the ability to develop the lower level for Arbol Eatery and other amenities, I pursued direct negotiations with the seller.

I know there are some folks who rent two units in the sam building separate but also are able to combine them for bigger groups and having that flexibility could benefit you!

A combination of these approaches could create lasting, scalable solutions across Texas.