With higher inflation numbers, investing in multi-family income properties makes more sense than ever. The problem is that finding a property with good returns is like finding a unicorn.
There is a lot of competition for quality properties and prices are very high, which of course means that returns are very low (in other words, low cap rates).
Properties that are cheaper to buy normally need quite a bit of construction work to re-position them in the market for higher rents.
Most of the big syndicators are buying properties like these, ‘value add” deals that have room for them and their investors to make money.
But if you look around in Chicago and other growing markets, big developers are putting up offices, apartments and condos as fast as they can right now.
Why? Rates are low, rents are at all time highs and demand for new construction units is very high. Now is the time to build new construction!
Why would you want to compete to over pay for an older building and then do a bunch of construction work rehabbing it, only to achieve rents much lower than new construction.
My new book: Don’t Buy Multi Family! BUILD IT will show you how the numbers work and how you can find opportunities to get started building new construction multi-family yourself.
Grab a copy on Amazon and learn how it’s done. https://www.amazon.com/gp/product/B09PSFMC6Z/