About to close on 2 duplexes! Woo Hoo! 4 units will rent for 600/mo, should profit from everything around $1000/mo. Not a bad start to our business... Anyways, our business plan is buying multifamilies and renting out. Since we are getting such a great start with these 2 duplexes, we want to keep up the pace. 2 questions:
1. We will not have the significant amount of cash needed to buy another multifamily until next year (considering not much seller financing around here and mostly only conventional financing), what types of partnerships could work for us? Is a partnership a good way to acquire more property?
2. I've seen discussions about marketing but mainly for wholesaling. Is there a point to marketing if you are trying to find properties to rent out? What would this entail?
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Thanks Brian! I have thought about this. One of the properties we are getting is actually with the strategy of a partner using his SDIRA to loan us the money. Are there any tips to marketing towards more of people like this? How can I find more?
Hello again @Sarah Miller ! I was curious, are you purchasing in North Canton? From what I've found in Canton, 2 br units are usually more 500 range. Wondering if you found a good area of Canton or if you're in the higher quality market in North Canton.
PS. I have a good friend named Jason Rose who has been successful in NE Ohio for quite a while (the one who's getting me started). He heads a workshop called Smart Start Real Estate Investing, which is aimed towards educating and getting beginners started. Check it out at SmartStartToday.com, at the very least it is a great group of almost 500 RE investors, lenders, and vendors to network with! This meetup page shows upcoming events! http://www.meetup.com/SmartStartRealEstate/
If you're not interested, no problem! Keep me posted on your ventures and I'll do the same! Good luck!
Thanks Darren. One of the duplexes is actually 2 3BR units. The other one is 2 2BR units but it's in Alliance in a nice area with 2 2car garages for each unit. I'll look into that website you mentioned
Way to go Sarah! I have recently thought about getting into multi-family's in our area but haven't seen any cap rates near what I have been able to get with SFR's.
Do the units need a lot of work?
Where they on the MLS?
@Zach Zimmer School me a little bit. Cap rate? What's this calculation?
The one was 82k selling price; found on the MLS, just made sense as it was 3BR with garage and could pull more rent. That one gives me $100/unit/month profit after the 50/50 rule. This one does not need much work at all outside of paint and flooring (not a big deal for us)
The other one we found on an auction website, bid on it a few times just for it to keep getting put back up (if you know how those work at all). Finally contacted the listing agent saying what the heck and the next day the auction website let us put a PA on it since we had been the highest bidder in 8 months. Got lucky and they took it! This one needs just a LITTLE bit more than the other one with some arranging of appliance hookups but again, nothing huge for work needed.
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