Thousands of small multifamily homes are on sale all over the US housing market. The question is: How do you find them? Well, there are multiple strategies you can use to find small multifamily for sale in 2021. For a start, you could simply conduct a Google search using the phrase ‘multifamily property for sale in [neighborhood]’. Or you could use the old-fashioned ‘drive for dollars’ strategy to look for small multifamily homes in the neighborhoods in your area. Auctions and listings on Craigslist can also be a great source for multifamily real estate deals. You could even get more creative and use direct mail to target potential sellers.
While each of these strategies could be effective for finding multifamily for sale, they all have one major flaw. Though you will have basic information about the property you are considering buying such as listing price, number of bedrooms/bathrooms, and square footage, you will not have any data about the profitability potential of the rental property. This is why you need more advanced tools to not only find, but to also analyze multifamily for sale.
Related: 6 Ways to Find Multi Family Homes for Sale
How to Find Multifamily Properties for Sale
Wondering where to find multifamily properties for sale? The best way of finding a duplex, triplex, or fourplex for sale is to use Mashvisor’s real estate investment tools. Here are some of the tools that will help you find multifamily for sale:
The Real Estate Heatmap
Location is very crucial for the success of any real estate investment. It will determine what kind of property type you can afford as well as the returns you can expect. This is why the first step towards finding the ideal small multifamily for sale is identifying the best rental markets for this kind of property.
Mashvisor’s real estate heatmap will help you analyze multiple neighborhoods within minutes. This tool shows the performance of different neighborhoods in any city or town using different colors. The areas with the lowest values will be highlighted in red, while the best-performing areas will be highlighted in green.
The real estate heatmap comes with the following metrics which will help narrow down your investment property search:
- Listing price
- Cash on cash return (traditional and Airbnb)
- Rental income (traditional and Airbnb)
- Airbnb occupancy rate
Related: 12 Best Multifamily Markets for 2021 with High Cap Rates
The Rental Property Finder
After finding a profitable neighborhood, the next thing to do is to look for multi unit properties for sale. The rental property finder is a tool that investors can use to find ideal properties in their target housing market with only a few clicks of a button. Using predictive analytics, machine-learning algorithms, rental comps, and ROI metrics, this tool will help you not only find multifamily for sale that match your criteria, but also those that promise the highest return on investment.
So, how does it work? Just like the heatmap tool, the rental property finder comes with several filters that you can use to customize your search. Here are the filters you can choose from:
- Location (miles and cities)
- Rental strategy (traditional or Airbnb)
- Budget
- Number of bathrooms
- Number of bedrooms
- Property type
Mashvisor’s Rental Property Finder
The Mashvisor Property Marketplace
One of the best places to get great real estate deals is off the market. There are numerous properties that are bought and sold without being listed on the multiple listing service (MLS). The problem is that finding off market multifamily for sale online is not always easy. The good news is that you can find a wide range of off market properties on Mashvisor’s property marketplace. This marketplace provides listings of properties such as bank owned homes, foreclosures, auctioned homes, and short sales.
You can narrow down your search using the following filters:
- Location
- Distance from location
- Rental strategy
- Budget
- Type of property
- Cash on cash return
- Cap rate
- Number of bathrooms and bedrooms
- Listing type (tenant occupied, needs repair, foreclosures, and non-MLS)
Once you’ve set your filters, the AI-powered property search algorithms will generate the best multifamily for sale in the city of your choice.
Related: 8 Ways to Find Profitable but Cheap Multi Family Homes for Sale
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The Multifamily Investment Calculator
Once you’ve found a great multifamily for sale, you need to crunch the numbers to see what kind of return on investment you can expect. Though you could do these calculations manually using spreadsheets, it would take too much time. An easier way of doing it is by using Mashvisor’s multifamily investment calculator. Also known as the investment property calculator, this tool will help you calculate metrics such as cash flow, cash on cash return, and cap rate for multifamily homes. You will then be able to quickly compare different properties and pick the one that promises the best return on investment within your budget range.
What makes this calculator stand out from other real estate investment tools in the market is that it provides you with comprehensive investment property analysis based on the performance of actual rental comps in the area. The big data and AI which go into the calculations make them very accurate and reliable. In addition, the multifamily investment calculator provides rental comps that you can use to conduct your own research and verify the results provided by Mashvisor. In this way, you can make your real estate investing decisions with confidence.
Related: The Best Rental Comps Software for 2021
Mashvisor’s Investment Property Calculator
Related: How to Find Multifamily Comps: 4 Ways
Conclusion
If done properly and with due diligence, investing in a duplex, triplex, or fourplex for sale can be a very lucrative business in 2021. Whether you are a beginner real estate investor or a veteran, you can never go wrong with the above-mentioned real estate investment software. The Mashvisor platform is intuitive, affordable, and easy to use. You can try the available investment property search tools out for free for seven days before making a decision.
To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.
Related: Why You Don’t Need a Multi Family Analysis Spreadsheet