Market Insight: Portland's Multi-Unit Market
Have you been thinking about an investment property? Whether it’s an owner-occupied two-family or 100% tenant occupied building with 3 or more units, buying a multi-unit can be a great to way to invest and build wealth.
Portland has seen a surge in market activity over the past year. Here are the numbers:
- The average sales price for a multi-unit building in 2015 was $412,103 up 16% from 2014’s average sales price of $355,229.
- Volume increased 3.4% with 148 units sold in 2015 compared to 143 units sold in 2014.
- Increased demand - the average days on market in 2015 was 64 days compared to 74 days in 2015 a 14% improvement.
When looking purely at the numbers, multi-units generally don’t start to create cash flow until you get into buildings with 3 or more units. That being said, if you are planning to owner occupy a two-family home, it’s still a smart investment because the rental income from the other unit helps you offset your monthly mortgage payment.
When financing a multi-family you will often need a larger down payment, typically around 25%. If you are going to owner-occupy the property you can potentially put down as little as 3.5% and use the rental income to help you qualify for the purchase.
As someone who owns a multi-unit myself, one recommendation I would make to anyone who is considering buying a multi-unit property is to live in the building if at all possible. Even if you only do it on your first investment, living in the building for a year will help you learn what it takes to own and manage a multi-unit property, and it will better prepare you for your next investment!!
If you or anyone you know is interested in exploring multi-unit properties in or around Portland, I would love the opportunity to help. Please don’t hesitate to reach out anytime; we can start the search today!!
This market insight report was brought to you by John Fitzsimons (The Davin Team), an Associate Broker at Portside, with an ongoing love for discovering all Portland has to offer through long runs on the Peninsula and walks with his adventurous black lab.
207.233.8314 // email@example.com
**Based on the Maine Real Estate Information System, Inc. for the period of January 1, 2014 - December 31, 2015. Provided by an individual user of MREIS. MREIS has not reviewed the contents and does not make any representations, warranties, or guarantees regarding the accuracy, timeliness or completeness of any statistical information and data provided.**