Key Learnings Trying to Buy a Housing Authority Property Property

While trying to acquire a multifamily Housing Authority owned property, I became quickly aware the approach is different when dealing with a government entity versus experienced private or institutional sellers.

These are my key findings:

• Hard Money isn’t necessarily needed
• The motivation behind the Housing Authority is to get top dollar
• Amenities are very light and must be added to be competitive with surrounding properties
• While maintained well, interior renovations are a decade or more behind the times
• Little deferred maintenance because they have a mandate to keep a clean and safe property
• Any acquisition will take longer to stabilize and re-position to attract the right market rate paying tenants

While tougher than a normal multifamily acquisition and re-positioning, the upside benefits to outweigh the costs tremendously.  Hence, these properties are not a surprise go at a premium.