Investor · Eastern Central Florida · Member since 2022 · 8 posts · 8 votes
Hey guys,
I was wondering if anyone out there had some tips on how I should go about beginning my investment career in multi-family. I’m looking to purchase a property with at least two units but willing to go for a triplex or fourplex if financials allow. I’m currently working full time but my career allows for a lot of time during the day to educate myself on real estate investing. Have about 15k saved currently but can roughly add 3 - 4k a month to that. Found a couple c-class 2 unit properties close to my area for around 180k. Both properties have tenants. Should I wait until I’m able to cover 20% down? Try to find something cheaper without tenants that I can put sweat equity in then rent out? Or go for a type of creative financing? Ultimately I’m trying to create a good plan to scale rapidly without much upfront capital in order to achieve more freedom with my family.
I was wondering if anyone out there had some tips on how I should go about beginning my investment career in multi-family. I’m looking to purchase a property with at least two units but willing to go for a triplex or fourplex if financials allow. I’m currently working full time but my career allows for a lot of time during the day to educate myself on real estate investing. Have about 15k saved currently but can roughly add 3 - 4k a month to that. Found a couple c-class 2 unit properties close to my area for around 180k. Both properties have tenants. Should I wait until I’m able to cover 20% down? Try to find something cheaper without tenants that I can put sweat equity in then rent out? Or go for a type of creative financing? Ultimately I’m trying to create a good plan to scale rapidly without much upfront capital in order to achieve more freedom with my family.
Thank you!
If you are not owner occupying one of the units, then you will probably need 20 to 25% down. Evaluating multi-family is very similar to single family. Consider all income and all expenses in your calculations. During the inspection process, you will not only be looking at the structure, but you will be looking at the individual tenants and their payment history, strength of leases, rent rates, deposit, etc.