The current inventory of Multifamily Properties for Sale in Albuquerque, NM is moderately higher at 116.
Some investors believe that Multifamily and Apartment buildings are the best investment because they are easy to find, easy to analyze, everyone needs a place to live, banks love to lend on them, and they're great cash flow generators – especially now that prices and interest rates are down! Multifamily Properties for Sale in Albuquerque, NM up to a total of 4 Units/Apartments can be financed through a Residential Loan, basically just like you are buying a Single Family Residence!
For a new investor they are easy to analyze and manage. I do recommend having a good Property Management Company like LOE Property Management in place to make your life a lot easier and still have the benefits of positive cash flow. For an experienced investor Multifamily and Apartment buildings are straightforward to manage and you can set up business systems to automate and delegate the mundane day-to-day tasks of owning apartment buildings or hire a Property Management Company. Once one is started it is relatively simple to buy more and more apartment units and build up a nice, cash flowing portfolio.
The value of an apartment building is driven by its net operating income (NOI), the amount of income left after all expenses are paid. The more money the building spits out after all expenses, the more it’s worth.
In many parts of the country, a building is worth 10 times its net operating income. This “10 times multiplier” is referred to as the “capitalization” or “cap rate” for short. Cap Rates for Multifamily Properties for Sale in Albuquerque, NM vary and offer between 5 and 8 percent. Any properties with higher returns than that we consider as "cash cows"!
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The inventory of Multifamily Properties for Sale in Albuquerque, NM is currently still pretty low at around 110 active listings in the SWMLS but the inventory for sale has been going up over the last couple months. Rio Rancho has a very limited supply at only 3 properties currently for sale based on MLS data. MLS shows 19 sold Multifamily Properties in Rio Rancho over the last 12 months. Albuquerque had 232 closed sales over the last year, also showing an upward trend.
Commercial Real Estate Trends in New Mexico: September 2019
Commercial Real Estate Trends & Outlook US: 2nd Quarter 2019
To find all listed Apartment Buildings and Multifamily Properties for Sale in Albuquerque, NM please use the map below!