Investors are now giving equal attention to all multifamily properties including those containing wood (either half or all wood). This is in contrast to previous patterns seen by investors who avoided wood properties due to the limited life cycle, higher insurance costs, and overall amount of repair associated with owning wood properties.
Another occurring shift is the appreciation on multifamily units of an estimated 10-15%. As some might suspect this isn’t entirely because of an increased demand in the rental market or higher net income of a property but instead lower costs for financing which is allowing a property to maintain a positive cash flow despite an increase in price.
In the past, appreciation could be noted as “cyclical”, however, given the constraints of inventory in the market and the overall mentality of both owner and investor, appreciation is setting a precedent rather then taking part of a cycle. Lastly, properties with little to no deferred maintenance and / or which have already been fully renovated with stabilized income are in high demand.
For many investors the focus is on long term investments (retirement and / or cashflow) and most do not want to deal with large upfront capital expenditures or ongoing deferred maintenance issues.