Tuesday, November 29, 2011

Multi-Family sales are on fire in Philly


Right now, local experts are estimating $500 Million in multi-family sales in 2011 compared to $150 Million in 2010. That's a huge jump. Why?

Here are 2 reasons why I think this is happening in our area (and will probably continue over the next few years):
  1. Rentals are performing very well right now with no end in sight; this is due to the uncertainty in the economy. When people aren't buying, they're renting. Higher demand for rentals causes rental rates to rise.
  2. You don't just get 1 set of tenants in a multi-family property, you get a few. With home prices being as low as they are right now, the Cash Flow ROI is almost always going to be higher today on a multi-family than on a single family. That is, if you buy the right one.
If you're interested in taking a look at the numbers for your next project, drop me a line and we'll grab some coffee.

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