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28: Inflation Falls, Inventory Drops, and Why is Multifamily Such a Mess?

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Single-family vs. multifamily investing. We can go on this debate for days. Small-time investors favor single-family rentals due to their low barrier to entry and ease of management. Big players and passive investors far prefer multifamily thanks to its scale and ability to bring in some serious cash flow. But, it seems that many multifamily investors have lost their way. For the past two years, buying almost any multifamily property was considered a good investment, but now things are starting to shift.

Today we bring you two separate deals, one from Henry Washington and the other from Kathy Fettke. One is a single-family flip, and the other is a “passive” multifamily buy-and-hold. You’ll hear why one of these deals got ditched while the other should fetch a handsome return. This top-level analysis can help you debate future deals, as some properties look far better on paper than in real life.

We’ll also touch on the latest inflation news and an update on housing market inventory. One story shows some hope of the economy recovering, while the other could spell troubling times for investors coming up ahead. In the “News vs. Noise” section, you’ll hear exactly why a housing market crash may be delayed a bit longer and how more money could be pumped back into the economy, stimulating sales and boosting buyer activity.

In This Episode We Cover

Deep dives into two live deals that Henry and Kathy have been presented with

The latest inflation numbers and some promising signs of real economic growth

Why home listings dropped by double-digit percentages and how this will affect the housing market

Real estate syndications and how past successes are putting today’s deals in jeopardy

Aggressive underwriting and why every passive investor MUST vet the deal before they invest

1031 funds and using Delaware statutory trusts (DSTs) to limit your tax burden 

The tell-tale signs of a great rental market in 2022’s changing economy

And So Much More!

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Our Last Episode on Finding the Perfect Property Market

Redfin Reports Newly-Listed Homes Fall Most Since 2020

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-28

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