Pros and Cons of Listing Your Multifamily Property for Sale

Posted by Techyscouts | Posted on 05/10/2023
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    • There are many pros and cons of listing your multifamily property for sale. Depending on the real estate trends right now, there may be more pros or cons. Michael Millea is a long time Apartment Broker in Los Angeles. His current advice is to hold onto your Apartment Building for now. Unless of course, you need to sell because of a death, partnership issues, want more income, want to upgrade location, etc.

    Pros:

    Real Estate Prices Have Hit an All-Time High

    A major surge in property sales and prices occurred over the past few years. Up until recently, it has definitely been a seller’s market, especially with buyers willing to pay beyond the asking price. However, due to increasing interest rates, the market is starting to cool a little, so now might be the time to push for a sale before the prices start to drop.

    Multifamily Equals Multi-Passive Income

    A great selling point for a multifamily property is the fact that a buyer can turn a profit every month without having to do much beyond the standard upkeep of the property. If the buyer wants to reduce personal expenses, he or she can live in one of the units and still make money.

    Cons:

    Property Taxes All Fall on the Buyer

    Buyers of these properties are housing anywhere from two to two hundred families. Despite the income generated each month, buyers have to pay all of the property taxes because tenants pay no tax at all to live there. Buyers pay property taxes based upon their purchase price for the Apartment building. .

    If, as an Owner, You Become Ill or Can’t Address Issues in the Building, You Have to Hire Someone to do the Job

    Although owning Multifamily properties supposedly generate “passive income” that is a bit of a misnomer. Properties always need some maintenance and when there are vacancies, units often need significant upgrading. There is also the always present issue of dealing with tenants.

    Be sure you are well-prepared for any issues that might arise. Please contact Michael Millea for all your real estate brokerage needs. Contact us today!

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