TABLE OF CONTENTS
1. Where to Find Foreclosure Multi Family Homes for Sale
1.1 Find Multi Family Pre Foreclosures Off-Market with Reonomy
1.2 Search Real Estate Listings
2. Value and Drawbacks of Foreclosure Multi Family Homes for Sale

Foreclosure Multi Family Homes for Sale

Foreclosure multi family homes are properties that a mortgage lender or lien holder has seized ownership of due to unpaid debt on behalf of the borrowing owner.

The commercial market is awash with foreclosure multi family homes for sale – providing a lucrative opportunity for eagle-eyed commercial real estate buyers.

Banks, mortgage lenders, and the U.S. Department of Housing and Urban Development (HUD) reclaim thousands of foreclosure homes every year.

As such, there are many resources to pick and choose from when seeking out a multi family foreclosure investment. In this post, we’ll run through the different options, their benefits and drawbacks.

Where to Find Foreclosure Multi Family Homes for Sale

Foreclosure multi family homes for sale can be found using a number of different sources online. Whether you’re looking for an entire apartment building, mobile home park, or a duplex, you have plenty of options.

One option is to search off-market and get directly into contact with property owners even before their property goes into foreclosure.

Before a property is foreclosed on, you can actually identify it, the owner, and the contact information of the owner on Reonomy to get in touch directly and make a play before any larger entities get involved.

Reonomy’s pre foreclosure search capabilities let you search by the category of pre foreclosure that a property is in, its auction date, or both if you prefer.

Reonomy Search Pre Foreclosures by Pre Foreclosure Category

A search like this can be done anywhere in the U.S., for multi family and a number of multi family property sub-types (student housing, senior housing, mobile home parks, duplex, triplex, and so on).

You can also add a number of building and lot specifications, like number of units, building area, lot area, year built and so on.

 

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Search Real Estate Listings

There are several platforms providing multi-unit property listings for sale. Check out the quick list below:

BankForeclosuresSale.com

BankForeclosuresSale.com posts hundreds of daily listings of foreclosed multi family residences. The site boasts over two million foreclosure homes in total, making it a great place to start your search for a multi family investment.

In addition, BankForeclosuresSale.com offers several resources tailored to both new and seasoned investors to help guide your multi-family purchases.

Homes.com

Homes.com is another great place to find foreclosed multi family homes for sale. Specializing in the multi family market, the site offers townhouses, condos, new homes, and a range of other multi family properties to choose from.

Homes.com Homepage Screenshot

Furthermore, Homes.com can also connect you with several reputable real estate agents, who can help you find the right multi family property for your investment needs.

LoopNet

LoopNet is one of the go-to resources for commercial real estate investments.

The site is home to thousands of multi family properties – while they do not have a “foreclosure” specific search, they do include some listings for bank-owned properties, which is synonymous with foreclosed properties.

LoopNet offers an interactive aerial map that you can use to draw and search from multi-family properties in your target location.

By creating an account, you can easily save past searches and attractive multi-family listings.

Foreclosure Support

ForeclosureSupport.com Homepage Screenshot

Foreclosure Support is a popular listing platform for sourcing foreclosed multi family property for sale. Foreclosure Support offer one million foreclosure properties across the US – each of which are easily searchable thanks to an interactive map.

In addition, they also offer 24/7 support to platform users.

Zillow

Zillow is one of the best-known online listing platforms for residential properties. You can search for foreclosure properties based on listing type, price, lot size, HOA fees, year of build, and square feet.

In Florida alone, Zillow lists 2,888 available properties: you can organize these based on price, proximity, and size.

Realtor

Realtor provides thousands of multi family property listings, including foreclosure multi family homes for sale. You can search for foreclosed multi family homes based on price, size, and key property features.

Realtor also provide extensive details on the multi family market based on each state. They serve up details on median listing price, average square foot, and the most popular neighborhoods.

For example, in Los Angeles, CA, multi-family homes have a median listing price of $899,000, a price per square foot of $591, and are situated amongst some of most popular neighborhoods – including Brentwood, Beverly Glen, Central LA, and Bel Air.

US Department of Housing: the Federal Housing Administration

When considering where to buy multi family properties, the US Department of Housing may not be top of your list. HUD’s Federal Housing Administration (FHA) insures mortgages and direct loans on multi family properties.

When a property owner defaults on their mortgage, the HUD swoops in and forecloses the property. You can find HUD multi family property for sale at the time of foreclosure.

You can subscribe to the HUD’s Multifamily Property Disposition Mailing List to receive an electronic invitation to bid on multi family properties as soon as they appear on the platform.

The Value and Drawbacks of Buying Foreclosure Real Estate

Multi family homes, on the whole, are one of the most popular choices for investors in commercial real estate.

With that, and due to the unfortunate nature of foreclosure, the values and drawbacks of investing can sometimes be a hot button topic.

The Value

Foreclosure multi family homes often sell far below standard market prices as lenders typically prioritize unpaid dues over maximizing their profits.

Characteristically, they offer great profit margins to investors; distressed multi family properties typically offer a below-market value of 30% to 60%.

The multi family market, specifically, is one of the strongest asset classes to invest in.

Everybody, of course, needs a home, but with a lacking rise in real wages amongst other factors, the majority of millennials have been barred from owning a home. In other words, the demand for rented housing doesn’t look like it will dissipate anytime soon.

Multi family real estate can also be comprised of senior housing, mobile homes, nursing homes, and hospitals; all of which are also strong commercial real estate investments.

The Drawbacks

While distressed multi-family properties can seem like a winning investment, you need to carefully analyze the ROI and amount of work that goes into getting a return in a lot of cases.

In short, foreclosure multi family homes are often going to be very demanding from an ownership standpoint.

Despite the reductions in price, foreclosed multi family homes often require extensive repairs and renovations that can eat into your expenses and drastically slash your ROI.

Having a sizable renovation budget can ensure that you have enough money to cover repairs and to undertake renovations to increase your property’s appeal to potential renters.

Aside from taking the time to carefully calculate the key metrics of each distressed property investment, like the cap rate and cash-on-cash return, also be mindful of the additional costs entailed with investing in a foreclosed multi-family property.

The Ultimate Guide on How to Find Foreclosure Multi Family Homes for Sale

Foreclosed multi family property is one of the most lucrative real estate investments on the commercial market.

Different multi family fore-closure property listings will appear on different listings platforms. The more platforms you are subscribed to, the more multi family offerings you have at your fingertips.

If you’re not already subscribed to the above sites, open up a new tab for each and hit subscribe to get the latest multi-family listings sent straight to your inbox.

 

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