Multi-unit investment properties are one of the hottest commercial properties on the market today.
“A good income-producing multi-unit will bring ‘mailbox’ money every month,” explains Brooks Ames, a Realtor/Auctioneer with KIKO
for more than 20 years. “As long as owners take care of the real estate, it will be an investment that continues to make them money for a long time.”
A multi-family property can be a duplex, triplex or quadplex – a house with two, three or four separate units, respectively – or they can be townhouses and semi-detached homes. Properties with five or more housing units is considered commercial in the real estate industry.
Regardless of the property type, the market continues to remain strong for this multi-family commercial real estate. So, when is the right time to sell a multi-family investment?
“The right time to sell is when you want to convert your assets into cash,” explains Ames. “Right now, banks are lending money at historically low rates and buyers are taking advantage of that. Also, many sellers are able to take advantage of 1031 tax exchanges.”
If you’re thinking about selling, consider taking advantage of the auction method of marketing.
Auctions can make the process smoother for tenants as the units are generally open on auction day at one specific date/time. Additionally, auctions allow sellers to control the terms of the sale – the multi-units can sell “as is, where is” with no contingencies and on a specific date set by the seller.
Here are more tips for selling multi-unit investment properties:
- Make sure the outside is clean. Curb appeal is huge!
- Have all leases, utility bills, etc. readily available for potential buyers.
for advice on selling commercial buildings, land or equipment.