Selling Multi-family Property is Different From Selling Single Family Homes
Most of the people looking at single family homes are planning to live in those homes, but as you know, most of those who are searching for multi-family properties are not. And that makes a big difference in how your property should be presented to the market.
Home buyers are looking at how they, their furniture, and perhaps a family will fit into both the home and the neighborhood. They’ll look at the floor plan, and they’ll look at the condition with an eye to what they might need to do before they move in. However, a big part of their buying decision is based on emotion and the “feel” of the home. Fresh paint and sparkling window panes can sway the decision.
Since you’re an investor, you know that investors are looking for something else. They’re interested in income. Thus, the numbers are all-important. The floor plan, the condition of the property, and the neighborhood matter only in how they will affect the bottom line.
They’ll be looking at your current rental income and deducting your maintenance costs, taxes, and insurance. Next they’ll consider whether your property will give a good return on their cash – or whether they’ll have cash flow after debt service to a purchase mortgage.
They’ll also consider the competition. They’ll be thinking about the likelihood that they can keep these units fully rented.