Wanting To Jump Into MFH. How To Know If I Have A Good Deal
I've been involved in the SFH game for a while and have had some success with it. But lately, I've had a strong desire to jump into investing in multifamily units. I'm currently reading the book Multi Family Millions and gaining a stronger grasp on how things work.
The biggest thing I learned since getting involved with real estate is that hesitating to take action is the worst thing you can do. After I close my most recent wholesaling deal today, I want to really go in with this. I've even been in contact with a guy who works for a hard money lending company that specializes in commercial properties so finding financing won't be as big of an issue. The main thing now is finding a deal.
So a few days ago, I ran across a craigslist ad for a 100 unit apartment in Atlanta. The owner is out of state in CA and wants to get rid of the property. The asking price is $1.7 million, occupancy is currently 71%, and the cap rate is 10%. The surrounding area is something I wanted to pay attention to. Wal-Mart plans to open a new store nearby. And the North American Porsche headquarters are moving their facilities from Sandy Springs to this area. Both of these things will bring new jobs to the area and possibly more tenants looking for a place to live.
Is there anything else I need to look for to determine if I should make a move on this? Obviously, there are things like repair issues that would be looked at during the due diligence period. But is there enough here to even make this worth looking at? And if so, what's the next step?