March 20th, 2020 5:49 PM by Taydus Taydus
As I did my morning search for available properties, I noticed something peculiar. THREE multi-unit investment properties were on the market, all priced under $1.7m, in great locations within the city of Boulder!
On occasion, one of these types of properties will pop up, only to be quickly snapped up by an eager investor. But THREE? And on the same day? In good locations?
Then I thought about it. There is fear in the market due to people needing to self-quarantine, and mandatory shut downs of so many public places, such as restaurants, bars, and businesses where the public would ordinarily gather, etc. People that own mom and pop shops, are self-employed, restaurant owners, etc. are scared, and many of them are wondering how they are going to financially sustain themselves. Tenants are losing their jobs, or at the least being temporarily laid off or forced to stay home, many without pay. This will make it nearly impossible to pay rent. Many students have already moved home leaving their rented spaces near campus uninhabited , and possibly without paying rent. This puts landlords in quite a predicament. Many landlords still need to pay the mortgage on these properties, and with no rents coming in, they may be considering cutting some of the weight, selling off some of their investments...and pricing them for a quick sell.
My prediction is that we are not only going to see this with multi-unit investment properties, but single family homes and condos / townhomes that were purchased as rental properties as well.
Some investors will hold on and ride it out, waiting for life to stabilize. Others will maybe shed a property or two to lighten the load during these uncertain times. This is a sad state of affairs, and my heart goes out to those that feel the need to "unload" an investment that they worked so hard for.
The small silver lining in this is that if you have been trying to get into the market, there is a chance that you may see more properties become available, at a reasonable market rate! This could be a good time to buy.
Our current environment is uncharted territory for all of us. Right now, it is not quite "business as usual" I personally am practicing social distancing and self-quarantining as best I can while working from home. Although I do not have a way to know what the near future holds, for now, the title companies are still open (with a limited staff); and I think we may see more remote transactions taking place very soon. Homes are still selling; while taking precautions to not further the spread of CONVD-19. That is the landscape for now.
If you are looking to purchase a home, please reach out. I am happy to discuss how we can make this happen and still practice healthy distancing.
If you are reading this blog, I sincerely hope that you and yours are safe and healthy. Please do all that you can to stay healthy and prevent further spread of this dreadful virus.