Comments on: Stats & Numbers: 2-4 Units 09/07 versus 09/08 http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/ Real Estate Insight, Statistics, Gossip, and News - with a Twist and some Flavor Sun, 21 Mar 2010 02:36:37 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: fluj http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6435 fluj Fri, 31 Oct 2008 01:56:12 +0000 http://thefrontsteps.com/?p=2754#comment-6435 Zanon, I'm not going to give out that information over the internets to completely anonymous people. If you want to email me, then by all means do so. kohlmyer@garrisonrealty.net Zanon,

I’m not going to give out that information over the internets to completely anonymous people. If you want to email me, then by all means do so. kohlmyer@garrisonrealty.net

]]> By: zanon http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6433 zanon Fri, 31 Oct 2008 00:27:57 +0000 http://thefrontsteps.com/?p=2754#comment-6433 fluj: and where would those be? I'm talking about SFH on the Peninsula that sell for about $1.5M and rent for $2K/mo. That's deep underwater, even with 450K down (30%). You need to cover interest on $1.05M, which even at 6% is 63K a year, never mind everything else. You're only getting $24K in a year, so losing $40K/year. fluj: and where would those be?

I’m talking about SFH on the Peninsula that sell for about $1.5M and rent for $2K/mo. That’s deep underwater, even with 450K down (30%). You need to cover interest on $1.05M, which even at 6% is 63K a year, never mind everything else. You’re only getting $24K in a year, so losing $40K/year.

]]> By: paco http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6413 paco Thu, 30 Oct 2008 19:25:58 +0000 http://thefrontsteps.com/?p=2754#comment-6413 still lots of competition for the multi-units i've looked at but the pace is quite abit slower. it does not seem like an area that will have distressed selling. still lots of competition for the multi-units i’ve looked at but the pace is quite abit slower.

it does not seem like an area that will have distressed selling.

]]> By: fluj http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6409 fluj Thu, 30 Oct 2008 17:24:40 +0000 http://thefrontsteps.com/?p=2754#comment-6409 I know of several properties that would be cash flow positive with 30% or 40% down. I know of several properties that would be cash flow positive with 30% or 40% down.

]]> By: zanon http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6404 zanon Thu, 30 Oct 2008 16:42:16 +0000 http://thefrontsteps.com/?p=2754#comment-6404 dothemath: I was interested to hear that you say the rental market is doing well. In my area, rents are still extremely below purchase prices, and any investor -- even with 30% -- is very cash flow negative on the property and must be hoping to make it up through appreciation. Not to say that there aren't people like that! Is that what you're seeing as well? dothemath:

I was interested to hear that you say the rental market is doing well. In my area, rents are still extremely below purchase prices, and any investor — even with 30% — is very cash flow negative on the property and must be hoping to make it up through appreciation.

Not to say that there aren’t people like that!

Is that what you’re seeing as well?

]]> By: fluj http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6403 fluj Thu, 30 Oct 2008 16:42:08 +0000 http://thefrontsteps.com/?p=2754#comment-6403 Seemingly they are taking about twice as long to sell. I say that with the twin caveats that, yes they are still selling at about the same price, and yes the samplesets are small. But by taking this data for what it is we can guess that investors are by and large buoyed by rent projections. I think DOM is perhaps a little more telling for multi unit buildings than other properties. The marketing tends to be flatter, targeted toward investors. Seemingly they are taking about twice as long to sell. I say that with the twin caveats that, yes they are still selling at about the same price, and yes the samplesets are small. But by taking this data for what it is we can guess that investors are by and large buoyed by rent projections. I think DOM is perhaps a little more telling for multi unit buildings than other properties. The marketing tends to be flatter, targeted toward investors.

]]> By: dothemath http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6402 dothemath Thu, 30 Oct 2008 16:29:50 +0000 http://thefrontsteps.com/?p=2754#comment-6402 I guess the market for multi-units won't be as affected as sfh's/condos -as they are typically bought with more than say 20% financing, and so less likely to struggle to get loans for in the current market. But this is only a guess - any other views? I guess the market for multi-units won’t be as affected as sfh’s/condos -as they are typically bought with more than say 20% financing, and so less likely to struggle to get loans for in the current market.
But this is only a guess – any other views?

]]> By: thefrontsteps http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6399 thefrontsteps Thu, 30 Oct 2008 14:53:28 +0000 http://thefrontsteps.com/?p=2754#comment-6399 Anna, Good question. What is says to me is that things in the multi-unit world aren't that bad. While volume may be down slightly in some areas, it's hard to make comparisons when less than 10 properties in any given district have changed hands this year vs last. The rental market is actually really good and many investors still looking for good buys. The important column for me is #units for sale, and although substantially more inventory is on the market at this time, it's not as if we've jumped from 50 units/district to 150 units. Broken down as percentages it seems like a lot, but a change from 16 to 22 (D-8) isn't something to lose sleep over. All in all, these numbers kind of make me feel better that the bottom really hasn't fallen out. Anna,

Good question. What is says to me is that things in the multi-unit world aren’t that bad. While volume may be down slightly in some areas, it’s hard to make comparisons when less than 10 properties in any given district have changed hands this year vs last. The rental market is actually really good and many investors still looking for good buys. The important column for me is #units for sale, and although substantially more inventory is on the market at this time, it’s not as if we’ve jumped from 50 units/district to 150 units. Broken down as percentages it seems like a lot, but a change from 16 to 22 (D-8) isn’t something to lose sleep over. All in all, these numbers kind of make me feel better that the bottom really hasn’t fallen out.

]]> By: anna http://thefrontsteps.com/2008/10/29/stats-numbers-2-4-units-0907-versus-0908/comment-page-1/#comment-6391 anna Wed, 29 Oct 2008 22:14:31 +0000 http://thefrontsteps.com/?p=2754#comment-6391 What is your read on these data? What is your read on these data?

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