How to Find Multi Family Homes for Sale

In a year like 2020, investors are going one of two ways–they’re pulling the plug on all investments, or they’re looking for even more opportunities to invest. They may even be how to find multi-family homes for sale. With a wave of evictions on the horizon (if legislation isn’t passed soon), it could mean thousands of families seeking new residences.

Investing in multi-family homes is a tremendous way to generate income and create long-term wealth. If you’re hoping to score a multi-family property for investment purposes or you have clients looking, this information could prove useful, and 2021 might bring better commercial property investment opportunities for passive income.

Know What You Want

Map apps are awesome – but if you’re not sure where you’re going, they still can’t help you get there. It’s the same with real estate investing. If you’re unsure of what you’re seeking, your searches likely won’t yield anything concrete. You should first ask yourself the following questions:

  • Where do you want to invest? For instance, you want to invest in residential properties – multi-family homes specifically—but in what location? Have you researched what areas have the greatest potential as far as rent growth?
  • How much do you have for the investment? If you or a buyer you represent plans on investing in multifamily properties solo, this tends to be a very specific amount. But if several individuals invest together, the amount is usually more flexible. Ultimate investment amounts depend on certain variables, such as potential profits, the going interest rate, long-term cash flow, and how interested each party is.
  • What type of property do you hope to buy? This depends somewhat on the amount you have to invest, but can also depend on the interests or skills of the investor. If you are specifically seeking distressed properties, you’d probably be interested in Class C listings. If you’re hoping for an income-producing property, however, you’d probably fare better looking at Class A or B investments. Additionally, owner-occupied multi-family homes are another route.
  • What are you not looking for? It makes sense to know what you want, but you also need to consider what you don’t want. For instance, do you really want to take over a property that’s behind on taxes, located at a super busy intersection, or rental property with tenants notorious for non-payment of rent?

How to Locate Multifamily Real Estate

Now that we’ve covered how to know what you’re looking for; how do you actually locate the perfect multi-family homes for sale? Well, here are a few ways to do so:

  • Using an MLS with commercial listings
  • Contacting the commercial or residential building owners
  • Networking groups
  • Marketing, both on- and offline

Let’s take a look at these strategies.

Use an MLS

A multiple listing service, or MLS, with commercial and multifamily properties, is probably the first property location method that comes to mind. But being obvious and being effective are two different things. Most MLS services give you a good idea of what’s available in a specific region and current prices—but what an MLS service can’t really show you is where the best deals are. That’s because if a multi-family property owner is using an MLS, it means they’re already marketing the property—which means they often demand higher pricing. The same is true of a single-family rental.

The best deals on multi-family homes for sale are probably not yet on an MLS, also known as off-market properties. Even so, an MLS is a great place to begin your search.

Contact building owners

Going directly to the source of a deal—the building owner—can really pay off. For multifamily properties, this means going directly to the apartment complex owner and asking if they’re ready to sell.

At the same time, however, it’s not economical to spend time scouting in person. More efficient methods of contacting building owners exist, such as scouring county auditor sites or looking through building owner lists on ProspectNow.

The county auditor website lists to purchase and sale dates, information about the building, and a lot of other useful data to create a property owner’s list. The dates of sale or purchase are useful because if a property was recently sold, the new owner might not be interested in selling. You can also check out listings for apartments or a multifamily home for rent and use the info listed to contact property managers and ask if the owner might consider selling.

Other methods

You can also check out virtual (or in-person where available) meet-and-greets, LinkedIn networking, or other local investors or brokers interested in mentoring you.

The more you put into your investment property search, the better. Consider developing a local investment group or building up your personal brokerage. This creates your own personal pipeline and deals can make their way to you.

Blogging, podcasting, or posting videos highlighting your experience in real estate, trends you see, tips for other brokers or investors, or just your own unique take on the market as a whole demonstrates your expertise. As your followers increase, they may even bring deals to your doorstep or point you in the right direction.

Try ProspectNow

ProspectNow is one of the best tools to have in your overall property search. We’ve been helping investors and brokers alike find the properties they’re looking for since 2008. We can help you find multi-family homes and other commercial properties for much less than you’ll pay on other platforms. See how we can help you boost your brokerage.