Investors acquiring apartment buildings for income purposes should look at future financial projections over a 3, 5 and 10 year basis.  Conversely, investors thinking about selling their apartment building should consider the same time line.

One of the biggest impacts on value over the next few years will be capital markets.  The good news is currently lending rates are moderate helping owners to maintain value.  However, the future question is inflation and its impact on rates. 

In today’s credit market there is both fact and fiction about market liquidity.  Yes, it is true that many lenders are no longer making multi-family loans, but there are plenty that still are. 

The take away is moderate interest rates with decent liquidity may make the potential of selling now better than in the near future.  Especially if your time line to sell is within the next three years.