Below is the Sale Price Average of multil-families by year in Stamford according to the CT-MLS. Please note this is the average and doesn't account for home improvements. The average sales price has started to rise, but overall the price of multifamilies in Stamford has decreased in the last 13 years. Many of the current multi-family sales were not updated and some were short sales or foreclosures. This accounts for the price drop.
If you are considering selling a multi-family, make sure you have current financial information for the rentals.... more
Good morning. You wrote "My main concerns are about the ability to easily get tenants and the amount of rent vs cost."
Lot's of info has been shared below and should be considered. I have been working with buyers who have this specific question. When looking, your agent and you should do some due diligence about the complex first, before presenting an offer. Some things need to be considered. Just so you know, many listing agents will not have this information when asked. If paying cash, at first glance these may not be important, but if applying for a mortgage, they become essential. Also, they are important for future resale. Condo complexes need to be compliant with Fannie Mae guidelines for a mortgage.
* 50% or more owner occupied
* No owner with over 10% ownership
* Less than 25% commercial space
* 10% or more of the annual budget goes into reserves
* Less than 15% of the units past due on common charges
* No litigation against the association, with the exception of a
slip and fall that is being covered by insurance.
* Not new = 90%+ pre-sale and turned over to the unit owners for
at least 1 year
* Adequate insurance coverage on the master policy
Ask your agent to find out the name of the management company since they will be able to answer these questions before time and monies are spent.
Your agent should gather comps for you concerning going rents and days on market for both ranch and townhouse style. Once you receive all this information, estimate expenses, you will be able to calculate what your NOI is.
One thing to consider as well in doing your numbers is vacancy time. You should at least expect 1 month vacant for turn around time and any repairs that may need to be done before next tenant occupies.
In 3 years time, no one knows what the rental market will be like, but based on present market conditions and future expectations, rentals are going to be in demand.
Also, check to see if any complexes are considering any restrictions with respect to renting units.
So with all info below, which I tried not to repeat, you should be well on your way to making the best informed decision for you. There are many factors to consider. If you have any thoughts feel free to share them with me. One more thing, check to see if complex has had any recent renovations and whether they anticipate any future assessments.
Keller Williams Platinum Properties
CT Lic... more