If ever there was a time to leverage a “Seller’s Market” in the Inland Northwest, now would be that time!
Interest rates are near historic lows. Rents are up in all apartment classes. Occupancy rates are in the 98% range, and buyer demand for apartment product is in the stratosphere. What a great time to be an apartment owner!
Having said that; now may be the optimum time to sell or exchange the losers in your portfolio. You know; the one you’ve never been that proud of. Maybe it’s the building that underperforms year over year or the one that requires constant maintenance or is highly management intensive. How about the one that is flat out ugly! (see Notable/Recent Sales Tab for UGLY)
In a normal stable market, all the above are very difficult to sell/exchange. However, a frothy “seller’s market” will absorb all the shortcomings noted above and for values that may astound you!
As owners, we operate & manage our portfolios with specific goals in mind. In my experience, I have learned that the journey is generally about financial independence and cash – flow in the retirement years. However, minor adjustments along the way are almost always prudent to maximize the result. So, press on toward your goal but remember history shows that markets cycles are just that…. cycles. They don’t last indefinitely.
Feel free to call or e – mail if you would like to discuss specific scenarios or ideas.
Until next time,
Glenn
