One of the most challenging aspects of the real estate rental business is finding multifamily for sale. Stated plainly, finding a multifamily property for sale takes hard work. Multifamily homes for sale are rare for a variety of reasons, but finding a good one, priced attractively won’t happen by accident. However, buying multifamily homes for investment is a critical part of any real estate rental business. Therefore, it is important to have a good understanding of how it is done. Here is Mashvisor’s guide to finding multifamily for sale for real estate investing.
First Way to Find Multifamily for Sale to Invest In – Use Mashvisor’s Tools
The first question you may be asking is, “How can I find multifamily homes for sale near me?” Ones located close to you are the easiest to research. Mashvisor has property search tools that will help you. Mashvisor’s Rental Property Finder (see below) will allow you to filter your search for multifamily for sale. That way, you are not looking at a lot of single-family units that don’t interest you. And if you want to search for investment properties in out-of-state housing markets and compare them with those in your local market, you can do that with Mashvisor, too!
Mashvisor’s Rental Property Finder
Related: What Are the Best Multifamily Markets 2020 with High Cap Rate?
And Mashvisor’s help doesn’t stop with the search aspect of your quest for multifamily for sale. You don’t just plan on buying a multifamily home. Your real goal is finding rental properties that will make money. Once you have found multifamily for sale, you will evaluate if it makes financial sense to add it to your real estate investment portfolio. You need to perform a multifamily real estate investment analysis. For that, you need a multifamily investment calculator. Mashvisor was created to help investors conduct such research and has the real estate investment tools you need after you find multifamily for sale.
Second Way – Employ a Realtor at No Cost to You
As with any investment property search, a realtor can be a valuable ally. Realtors know that multifamily for sale is an investor’s dream. Whether you are searching for small multifamily properties or large multifamily properties, involve a realtor. And there is a good financial reason why you should.
Related: Working With a Real Estate Agent: What Investors Should Expect
Using a realtor when you sell a property, or when you lease your rental property is different than when you search. The big difference is when you search, you do not pay the realtor. Realtors are paid by the seller, not the buyer in almost every circumstance. So a realtor that you trust and have worked with in other ways will be thrilled to help you search for multifamily for sale, even though you don’t pay them directly. They get a cut of the sale commission and it is free to you. Verify the arrangement with your realtor, but this is almost always the case. Get all the free help you can in your search for multifamily for sale.
Find a top-performing real estate agent in your market of choice.
Third Way – Watch for Distressed Property Listings
There is a third way to find multifamily real estate for sale. This way takes a bit of practice, but Mashvisor can help show you the ropes. This way is to watch for an unlisted property that will go to auction or be foreclosed upon. Distressed property sales have their own challenges, but if you have a solid contractor network working with you, bargains can be found here. A multifamily property that is sold at auction carries real risk for the uninformed. Therefore, do all of your homework and be sure you line up financing in advance.
Related: What Is a Distressed Property and How to Find One?
Fourth Way – Build It
Let’s face facts; you think you are asking how to find multifamily properties for sale. What you are really asking is how you can own a multifamily. One way is to build it. Or have it built under contract for you. This method of satisfying your need for a multifamily has one big upside and one big downside.
The big upside is the property that you build will be new and will meet all current codes. Unfortunately, multifamily properties are often distressed properties in need of a lot of renovations. Why not start fresh and build your own? Or work with a general contractor to have it built for you under contract.
The big downside is red tape. You will need to start with the town or city in which you plan to build to ensure that the property type you want is allowed by zoning codes. Next, you will have to work with a contractor, and also likely a real estate lawyer, to create a very clear contract. Before, during, and after the construction, you will be working with multiple code enforcement agencies to make certain the new home is done right.
Riskiest Way – Buy Part of a Multifamily
As you search for a multifamily for sale, you are going to learn quickly about partial multifamily homes. You know where to find multifamily properties for sale. You know how to find multifamily properties for sale. The problem is that many of them are multifamily condos and only part of the building is for sale. Other units in the same condo are owned by existing residents or other investors. We at Mashvisor want to emphasize this is a risky multifamily for sale situation.
For example, if you purchase half of a duplex, someone owns the other half. You have just entered into a contract where replacing a leaky roof requires the approval of a person with the same vote you have. Worse, imagine you buy one unit in a triplex and the other two are owned by an investor. You are now the minority partner in an investment property. We can’t stress strongly enough that part of a multifamily for sale is a very risky consideration.
Purchasing a multifamily for sale is an important part of your real estate rental business. Use Mashvisor’s tools to help you. Here is how to get started with Mashvisor right now.
