Residential Multifamily Sales Update 2-4 unit in Greater Phoenix

By sonoran • August 14th, 2008

Residential multifamily refers to 2-4 units properties or multifamily properties financed by residential financing like Fannie Mae. 

In July 12 such properties, duplexes, triplexes and fourplexes sold.  See an analysis just for fourplexes in Greater Phoenix. 

 

There are 44 pending properties or properties that have found a prospective buyer.  Since the buying process of a small income property is a bit different than a home some of these properties will come back on the maket, more so as a percentage than single family homes. 

In all 738 such properties are active, so investors do have a very high selection of properties even if most of them are low quality. 

What’s ahead.  

There is a lot of interest in multifamily properties.  They can be purchased for as low as $22,500 per unit and its easy to make them cash flow but the big hurdle is still financing.  Unless an investor is putting down a lot of money or buying for cash its more difficult to obtain financing.   It is easier to get financing for larger commercial sized multifamily properties  of 5+ units and especially once you finance over $1,000.000.

We’ll probably continue to see low sales but prices cannot go too much lower.  In so may of these cases the prices are well below replacement cost and often just the land is worth more then the total purchase price.

 

 

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