As single family homes become more and more affordable, we are seeing the inevitable rush of investors into that limited segment of the market. As inventory levels shrink, forcing prices to stabilize and then rise, we’re going to see many more frustrated buyers wasting their time with “multiple offer” bank owned homes.
So where will the smart money go? One answer could be multiplex homes. Some years back, these were seen as great investments, and maybe their time has come again.
Consider this: There are plenty of multiplex listings, with 4 units of 2 bedrooms each, listed in the low $100,000s. Qualified buyers can still get finance with 30% down, and even with some renovation work, in certain circumstances it’s possible to generate $500-$600 per unit in monthly rental income!
With very little competition from other buyers in the market, it’s not unheard of to get offers accepted at 20% below asking price.
Conclusion? Running with the herd is not necessarily the best strategy for savvy investors!
