Author Topic: Seattle area multi family being unloaded on unsuspecting fools?  (Read 1969 times)

Bearded Man

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Seattle area multi family being unloaded on unsuspecting fools?
« on: December 29, 2015, 12:57:24 PM »
Pretty much every 4 unit apartment building I look at is essentially not worth what little cash flow there is, even counting principle pay down. Basically I get four tenants and all their issues and the cash flow of LESS than one SF unit with leverage. Yet SOMEBODY is out there buying these. WHO? Fools? Unless they are making an equity play, I don't see why anyone would buy these. And even then the equity play isn't going to pay for all the time involved. WTF?

I would have loved a MF in the Midwest if I lived there, but man, who would buy this crap here? There is a clear reason the owners of these properties are desperate to get rid of them as prices have gone up. You'd make more money on HALF the dividend on VTSAX than this garbage. Yet people are buying this crap.
« Last Edit: December 29, 2015, 01:00:43 PM by Bearded Man »

ketchup

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Re: Seattle area multi family being unloaded on unsuspecting fools?
« Reply #1 on: December 29, 2015, 01:28:56 PM »
Speculators.

arebelspy

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Re: Seattle area multi family being unloaded on unsuspecting fools?
« Reply #2 on: December 29, 2015, 04:52:56 PM »
Speculators.

This.

Or people with good knowledge and a long term view.

And there may be some overlap between the groups.
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Bearded Man

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Re: Seattle area multi family being unloaded on unsuspecting fools?
« Reply #3 on: December 29, 2015, 05:13:17 PM »
Speculators.

This.

Or people with good knowledge and a long term view.

And there may be some overlap between the groups.

Or people who just don't know better. Everyone keeps telling them to buy a duplex and rent out the other side, become a real estate billionaire like Trump, live your dreams, run for President, etc.

I've been eyeballing them for the past few years. It seemed there were very few for sale for a while but suddenly as the market recovered they started going up for sale everywhere here. Not one I've looked at cash flowed worth a damn at these prices. Speculators has to be right. There is no way anyone is buying these for cash flow.


ketchup

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Re: Seattle area multi family being unloaded on unsuspecting fools?
« Reply #4 on: December 30, 2015, 07:47:30 AM »
Speculators.

This.

Or people with good knowledge and a long term view.

And there may be some overlap between the groups.
Oh, absolutely.  I'm sure some of the speculators know what they're doing and are taking a calculated risk, but unfortunately the bulk of them are likely the doomed "buy high, sell higher" crowd.

arebelspy

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Re: Seattle area multi family being unloaded on unsuspecting fools?
« Reply #5 on: December 30, 2015, 10:20:06 AM »
Speculators.

This.

Or people with good knowledge and a long term view.

And there may be some overlap between the groups.
Oh, absolutely.  I'm sure some of the speculators know what they're doing and are taking a calculated risk, but unfortunately the bulk of them are likely the doomed "buy high, sell higher" crowd.

Yup. Most are uninformed, crossing their fingers.  Some will get lucky, many will get burned.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

RFAAOATB

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Re: Seattle area multi family being unloaded on unsuspecting fools?
« Reply #6 on: December 30, 2015, 01:04:37 PM »
Or my plan to buy a multifamily, raise the rent until tenants can't afford it, then remodel it to a single family as my part in gentrifying the city.  If I get really into this, I could buy the multifamily next door.  Raise the rent until it's all vacancies, then tear it down so I have a larger yard.  If I could buy these two for nearly the price of a suburban house then I could have a big house in the city with a bubble from the crowded city conditions.

zephyr911

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Re: Seattle area multi family being unloaded on unsuspecting fools?
« Reply #7 on: December 30, 2015, 01:59:38 PM »
Send some cash to AL. Most of these are 15% down, 4% simple interest. Huge portfolio with local management available.