Multi-Unit Market Update: Cash Is King

We are about half way through the year and I decided to take a look at how the multi-unit market is handling things with financing constraints being what they are.  I was curious to see if seller financing was continuing its trend upwards.

Here is an updated chart:

What is remarkable to note is the dramatic increase in cash purchases.  FHA, Conventional, and Seller Financing all share the same portion of the market but cash deals constitute nearly half the market.  What is going on here?  Well, a while ago I wrote Dead Zone: Lowest and Worse Use where I explained the dynamic affecting the multi-unit housing market.  My thoughts are that cash purchases are a direct reflection of this dynamic.

If you have cash and want to make a return on your money, multi-unit housing may be a good place to do it.  Returns of 12% annually or better are possible and prices are very low right now.