Our team specializes in investors buy and sell in Chester County, Delaware County, Montgomery County, and New Castle County, Delaware. These counties have several hot cities that have more multi-family inventories, such as:

Norristown
Coatesville
West Chester
Downingtown
Media

Wilmington, DE

The housing inventory in these markets typically is older and many times the multi-family inventory is chopped up houses instead of purpose-built multi-family. It's always really important to check how the utilities are divided, whether the zoning is correct, if something is grandfathered in, and more. It really takes an expert to understand the valuations as well as what the market rents are and could be given renovations. 

You will find the cap rates change from place to place and in some desirable markets they can be as low as 5%, whereas in some undesirable markets people are demanding 10% to 12%. 

Challenges with Selling MultiFamily

I often see multifamily property listed by Realtors who clearly don't possess expertise in this type of property. They may neglect to show potential rents, show people costs, and help people understand the valuation of the property. Listing the property can also cause challenges with tenants when they get spooked, thinking that the property is going to sell. They may be difficult or not allow showings so there are different strategies we use to help make sure we get the showings through and get things done. 

Since we have a lot of experience in this area, we know what buyers are looking for. Sometimes we have buyers where we can do off-market transactions and still get a good price for the seller without disrupting the tenants.