Wow, it’s been a wild ride this year so far. Multifamily investments and performance are all over the board depending on which survey you read.

One thing for sure is a real slow down in purchases most likely caused by the presidential election. Multifamily investors reap great benefits utilizing aggressive accounting strategies so any discussion among candidates about a tax increase generally slows down the purchase market.

Surveys have indicated that rents have leveled off for most areas. I think this is fair to say. It’s always more difficult to raise rents in this environment. However, demand may increase as more borrowers are turned down. Overall costs of maintaining even a rental home is more than many want to take on in money or time.

Most surveys reported that expenses are going up as well. I hope no one actually got paid for that survey result. That’s sort of “duh”. A lot of wholesalers and energy suppliers have imposed increases due to the energy costs. Is anyone going to lower them now that their energy costs are actually lower?

Long term results of the surveys all pointed to multifamily investments being one of the best to purchase or own. I agree with that if for nothing else, investors can’t buy investment that is as highly leveraged as multifamily.

Vote for somebody on Tuesday!

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