Another week, another huge CRE default, it seems like everywhere you look there is a vacant office building or half-empty shopping mall struggling to keep up with its payments.

So while some people are waiting on the sidelines for rates to stabilize, a few savvy investors are cashing on these distressed properties.

From shorting CMBDs to office-to-multifamily conversions, there are a lot of opportunities that have been created by the uncertainty in the marketplace.

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This week we’ll highlight some of the ways that you can cash in while everyone else is waiting to see what happens next.

In this edition of the AltReports:

🏘️ Multifamily is back in style

📉CMBS values crash

🧟The zombies are back

🏗️Office conversions

👀8 most affordable cities

High mortgage rates have scared a lot of would-be homeowners away from purchasing at current prices.

This means that more of them are choosing to stay in cheaper multifamily units until property values come back down to earth.

For investors, the increase in renters has led to fewer vacancies and higher margins.

Commercial mortgage-backed securities (CMBS)have come under pressure recently from shaky real estate valuations and questionable ratings.

With the help of record-low interest rates and a little creative accounting, loads of CMBS got AAA ratings.

But now that mortgage rates are at 6% a lot of those underlying assets are starting to default.

Zombie foreclosures are on the rise again, up 5% from the last quarter and 10% from last year.

Overall numbers are still below pre-pandemic levels but growing quickly in a few states and zip codes.

The percentage of zombie properties in an area can tell you about the levels of distress in the area and help you find more motivated sellers.

Turning offices into condos: New York after the pandemic

Converting old office buildings into apartments has been a hot trend for a while, but now it's really heating up because nobody wants to work in an office anymore.

Who can blame them, right?

Silverstein Properties, a New York City developer, is hopping on the bandwagon with a $1.5 billion fund to buy and revamp older office buildings in Manhattan. 

Their CEO told Bloomberg that this is just the start of what could be a “$10-billion-plus” opportunity, but hey, who's counting? 

Where can you get a profitable rental property without breaking the bank on a down payment?

BiggerPockets has compiled a list of the 8 most affordable housing markets in the country. 

They also added a few criteria to the list that makes them great rental investments.

Despite all the negative headlines there are still corners of the market that are delivering solid profits for investors.

So remember to always keep your ear to the ground because the best deals are always the ones that only a few people are talking about.

That’s it for this week, see you in the next edition of AltReports