How To Find Multi Unit Homes For Sale In Any Market

Finding multi unit homes for sale isn’t all that different from locating viable single-family investment opportunities. In fact, many of the same acquisition strategies used to find traditional single-family homes can be repurposed and used to find their multifamily counterparts. Perhaps even more importantly, there’s nothing that says you can’t implement the same acquisition strategies for finding multi unit homes for sale in your own market.

What Is Multi Unit Real Estate Investing?

Multi unit real estate investing, otherwise known as multifamily investing, is exactly what you would assume: a real estate exit strategy that revolves around assets consisting of more than one unit. Or, as RedFin puts it, a multi unit home is essentially a property that has “multiple units owned by one or more parties.” More specifically, however, multifamily homes are a classification of housing in which several individual housing units reside within a single building.

Clearly distinguishable from their single-family counterparts, multi unit homes for sale represent a unique opportunity for savvy real estate investors. In addition to offering the same exit strategies as single-family homes, multifamily homes bring something additional to the table: quantity. The more units a building has, the more opportunities it provides — it’s as simple as that. The very definition of a multi unit home opens up an entirely new playbook not available to those with single-family homes.

Multi unit homes can be wholesaled, rehabbed, flipped and rented, not unlike a single-family home. It is worth noting, however, that as a multi unit property, there are inherent advantages it has over those of a single-family nature. For starters, maintenance costs are typically lower on multi unit homes. While there are more units to tend to, there are typically a lot of shared amenities. The roof on a multifamily home, for example, covers more than one unit. Whereas the ratio of roofs to single-family homes is one to one, multi unit homes typically have one roof for several units. The same could be said about yards, plumbing systems and driveways.

It is also worth pointing out that multi unit homes can reduce your exposure to vacancies. If you lose a tenant in a single-family home, you are at risk of having to pay off the entire mortgage. However, a single vacancy in a multifamily home won’t leave you high and dry. The tenants in the other units can often offset the vacancy of one empty unit.

I want to make it abundantly clear: I am not suggesting multifamily investing is unequivocally better than every other exit strategy out there, only that it is a viable option for anyone considering it. Like every other form of investment, multi unit homes have become synonymous with several positives and negatives. It is up to the investor, however, to determine whether or not the strategy is right for them.

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How To Find Multi Unit Properties Regardless Of Your Market

If you are convinced multifamily real estate investing is right for you, it’s in your best interest to learn how to find it. After all, you can’t partake in the benefits of multi unit homes for sale if you can’t find them. Fortunately, finding multi unit homes for sale isn’t all that different from finding viable single-family assets. Many of the same strategies that apply to finding single-family homes will work for multi unit homes, not the last of which include:

• Direct Mail: Direct mail will have investors target a list of specific homeowners, preferably those that are in distress. More often than not, the targeted list will center on homeowners that are either in foreclosure or at risk of it; that way, the pieces of mail sent out will be more likely to elicit a response. The strategy here is to let distressed homeowners know that you are willing to buy their property and perhaps even help them avoid a foreclosure. If your message is received, there’s a chance homeowners may call you in an attempt to work out a deal.

• Online: Not unlike their single-family counterparts, multi unit homes can be found online in abundance. If for nothing else, the internet is probably the easiest place to find homes for sale. Be sure to check sites like Craigslist or those dedicated to auctioning off distressed properties.

• Networking: Real estate is, first and foremost, a people business. The relationships you establish are more valuable than anything else, even the funding you manage to accumulate. That said, the value your own network offers is apparent in the deals it offers. There’s no reason to think you can’t find multi unit homes for sale through your own contacts; at the very least, you’ll never know until you ask.

• Wholesalers: Wholesalers, while investors themselves, represent a great opportunity for those looking to acquire multi unit homes. If for nothing else, wholesalers actively seek out end-buyers, so investors need to find a way to meet up with wholesalers. Both sides want to make a deal happen; it’s just a matter of bringing the two together.

• Bandit Signs: Bandit signs are essentially small billboards announcing an investor’s intent to buy a property. That said, there’s no reason a bandit sign can’t lead to the purchase of a multi unit home.

• Public Records: Public records held at local courthouses hold a lot more information than people give them credit for. More importantly, public records can identify those homeowners that are either at risk of foreclosure or currently in the middle of it.

• Auctions: Auctions are not limited to selling single-family homes. It is entirely possible to acquire multi unit homes at the right auctions; just be sure to do your research and identify the homes that will be placed up for auction in your area.

It is nowhere near impossible to find multi unit homes for sale. In fact, you can find multifamily properties using a lot of the same strategies used to find single-family homes. The key is to not place all your eggs in one basket; be sure to exercise every option at your disposal.

Finding multi unit homes for sale isn’t nearly a hard as many people make it out to be. The same strategies used to find single-family homes can be used to find multifamily homes. Use every outlet made available to you and increase your odds of landing a deal.

Key Takeaways

• Multi unit family homes for sale aren’t impossible to find, but rather just as easy as their single-family counterparts if you know where to look.
• Multi unit real estate can be found in any market, but not without implementing the right acquisition strategies.
• Multi unit real estate investing awards savvy investors with more opportunities than single-family investing.