Multi Family Properties- 5+ units
Hi , I am looking to to purchase my first multi- unit property with 5+ units. Out of State is fine too. My question is - Where does one find multi-unit properties for sale with 5 + units? Zillow, Redfin, etc? Thank you in advance
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@Eliyahu B Jacobs do you have experience with commercial properties? I've run into lending issues in the past if some experience isn't apparent. That's why I focus primiarly on small multi-family properties.
Hello, You can find commercial properties on Crexi and Loopnet
Hi @Eliyahu B Jacobs. I see you're here in Miami as well. I'd suggest looking on websites like crexi and loopnet. I'd also talk with a local Real Estate agent that specializes in commercial real estate, and is also an investor. They will have data on 5+ units that are listed for sale. They may also know about some off market deals. Feel free to reach out to me if you'd like a recommendation for a few local Commercial RE agents that I know.
@Eliyahu B Jacobs do you have experience with commercial properties? I've run into lending issues in the past if some experience isn't apparent. That's why I focus primiarly on small multi-family properties.
Good question @Ali Nichols. That's something many investors don't take into account. We look for those investors with some type of experience with 5+ units as far as having owned or even managed them currently or in the past, when we're underwriting. Owning a 3-4 unit can help with experience requirements as well. Experience is paramount, especially here in Miami. Commercial is very competitive. Its less complicated underwriting a 3-4 unit property especially if we go the DSCR loan route with our investor buyers. No experience or personal income documentation needed, and much faster closings.
My Friend,
Keep learning here in bigger Pockets, I love and encourage your attitude lets buy my first Multifamily. No matter how big a millionaire you are today, we all started there with our first deal.
Advice be part of an investor club find doers, partner with a team. You need to buy right(so dont expect an agent selling you or a seller to be on your shoes, you are on your own.) They are just providing you with information. Ask them how many they own that will tell you how experienced they are in managing a multifamily property. Their job is to sell no to manage.
Then you find the property now what type of financing should I use for this Unit?
Then how do I manage the units to get the highest return possible?
When should I refinance to cash out or not ?
How do I taxes to take full advantage...
My personal opinion if you don't have money to overcome mistakes, partner with a team for a few deals. Then you can keep buying and buying. YOu will buy more because you know more.
Luis Maquiera MFP
Hi Eliyahu, PMing you now. We just sold two 8-unit properties in Miami Beach and have more inventory.
Hi Eliyahu, as others have mentioned there are commercial sites like LoopNet for 5+ unit properties. However in commercial there are a lot more off market deals, and sales that happen without being formally listed. Therefore it will be important to get in touch with a couple of good agents in your desired area so they can bring you deals when they come up.
@Eliyahu B Jacobs I had lots of experience with small multi family properties before I bought my first 8 unit deal. I then bought a 5 unit property with a partner who has 17 SFH but no multi family experience and the lender made sure I was the managing partner before finalizing the deal. This project will also give my partner experience to now go out and get 5+ unit deals on their own once they get experience on the 5 unit property we have together.
Experience grows experience.
I use a Realtor I’ve known for 26 years that primarily focuses on residential properties. He keeps his eyes open for deals he thinks would be good for me and brought me the 8 unit property as a pocket listing through another agent in his brokerage. The other agent showed it to me and several other interested buyers then continued to sit on the listing so after 6 weeks I forced an unlisted offer on the 8 unit through my agent and we got it accepted. 6 months later it’s worth double in value at close to $1M.
Agents can be your best friends. Find a good one or two to work with and get them started looking for your desired property type in your desired neighborhoods.