{"id":110762,"date":"2019-05-09T14:30:02","date_gmt":"2019-05-09T20:30:02","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=110762"},"modified":"2021-03-16T14:53:52","modified_gmt":"2021-03-16T20:53:52","slug":"buy-multifamily-real-estate-new-market","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/buy-multifamily-real-estate-new-market","title":{"rendered":"I Bought an 80-Unit Apartment Complex in a New Market\u2014Here&#8217;s What I Learned"},"content":{"rendered":"<p>My company&#8217;s latest acquisition was an 80-unit apartment complex.<\/p>\n<p>As I walk you through this property, I&#8217;m going to go over five lessons I learned from buying this real estate investment.<\/p>\n<h2>5 Key Takeaways From Buying Multifamily Real Estate<\/h2>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/1tTVHgLwptc\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h3>1. Know the Market<\/h3>\n<p>This is the first apartment purchase I&#8217;ve ever made outside of the city where I live. To get to know the market, I stayed in Airbnbs in this neighborhood to really understand the locals.<\/p>\n<p>I wanted to get a feel for the types of tenants that would be renting from our property. I also wanted to coordinate with local property management companies.<\/p>\n<h3>2. Speak with Property Managers<\/h3>\n<p>Once we identified this property, I spoke with property managers about rent pricing. I needed to figure out where the rents for this property were at that time and where they could potentially be if certain renovations were made.<\/p>\n<p>With insight from the property management company, we were able to reverse engineer the purchase price by considering the rents and the renovation costs associated with achieving those rent prices.<\/p>\n<p><em><strong>Related: <\/strong><\/em><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/2013\/04\/09\/how-to-buy-a-small-multifamily-property\/\" target=\"_blank\">How to Buy a Small Multifamily Property: A Step-by-Step Case Study<\/a><\/em><\/p>\n<h3>3. Consider Self-Managing<\/h3>\n<p>We initially tried out third-party management of this property, but it didn&#8217;t work out. Their quality of work wasn&#8217;t up to our standards, and there was a lack of transparency and timeliness.<\/p>\n<p>Fortunately, with this being an 80-unit complex, you get the economies of scale being able to have two people on site. So we decided to part ways and self-manage.<\/p>\n<h3>4. Go Direct to Owner<\/h3>\n<p>This property purchase reiterated our stance that going direct to the owner to purchase will remain our go-to method. Right now, trying to find properties that are listed through a broker or a Realtor is just too competitive. We&#8217;d rather control our own destiny by going directly to the owner.<\/p>\n<h3>5. Be Persistent<\/h3>\n<p>It took six touches to get in contact with the actual decision maker of this property. And then, it took multiple follow-ups and months to convert them from being uninterested in selling to interested in selling. So practice persistence!<\/p>\n<p>Those were the biggest lessons I learned through some failures and successes with this <a href=\"https:\/\/www.biggerpockets.com\/blog\/2013\/04\/09\/how-to-buy-a-small-multifamily-property\/\" target=\"_blank\">multifamily property<\/a>. Hopefully you can benefit from some of these takeaways!<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/companies\/hard-money\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-109859\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2014\/06\/blog-ad-for-HML-page.jpg\" alt=\"hard-money-lenders\" width=\"700\" height=\"120\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2014\/06\/blog-ad-for-HML-page.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2014\/06\/blog-ad-for-HML-page-300x51.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>Do you have any follow-up questions for me about this property?\u00a0<\/em><\/p>\n<p><strong>Ask away in the comment section below!<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>My company&#8217;s latest acquisition was an 80-unit apartment complex.\u00a0As I walk you through this multifamily property, I&#8217;m going to go over five lessons I learned from buying this real estate investment, including how to get to know a new market, the importance of practicing persistence, and more!<\/p>\n","protected":false},"author":12140,"featured_media":106642,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-110762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/110762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/12140"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=110762"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/110762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/106642"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=110762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=110762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=110762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}