Information about Multi family
Kyle HerrenPro Member
Jacksonville Fl · Member since 2018 · 5 posts · 2 votesInformation about Multi family
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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 968 posts · 662 votesKyle, start with the numbers, not the property type.
Full disclosure, I buy single-family, not multifamily — 236 properties in Memphis, all run the same way. Purchase under $100K, ARV $180K to $265K, rent at the 1% rule or better, and for 3BR houses Section 8 pays $1,395 to $1,950 here. The refinance is underwritten before I buy, DSCR at 70-80% LTV.
You can learn that math free, the same way Chris said: run real deals on paper until you can tell in one pass whether the rent carries the building. On the mentor programs, my test is simple. If they are selling you a promise to close instead of teaching you to underwrite, it is not worth it. The homework feels slow because it is the job.
16 Replies
- 1dChris ColtonPro MemberInvestor · San Antonio, TX · Member since 2026 · 48 posts · 28 votes
Chris here in San Antonio. I am still early in this and learning as I go, so take this as one beginner talking to another.
What helped me was starting with the free stuff. The forums here and the beginner articles, and just reading old threads where people walk through actual deals, taught me a lot before I spent anything.
On the mentor programs, I would hold off. Learn the basics first and practice looking at deals and running the numbers on paper. Once you can tell what a decent deal looks like, you will know whether a program is offering you anything real or just selling you a promise to close.
Good luck with the homework. It feels slow at first but it adds up.
- Jacksonville Fl · Member since 2018 · 5 posts · 2 votes8h
@Chris Colton Thanks for the advice. Im excited about jumping into the research and learning how to find a deal. I appreciate you taking the time to respond.
- 1dDiana KhanPro MemberAttorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 701 posts · 251 votes
Quote from @Kyle Herren:
Happy Monday!
I’m looking into starting in multifamily. I’m trying to do my homework about it. Does anyone have any advice or somewhere recommended to start my research? I also have seen a few companies that offer programs/ mentors that claim they will help me close on a deal. Are any of them worth it? Thanks for any information it’s all appreciated!
@Kyle Herren, I agree with Chris about starting with free resources before spending money on a mentorship program. I'd also recommend looking at actual multifamily deals and learning how to review the numbers, existing leases, and property expenses. As for paid programs, I'd want to know exactly what they offer, what they cost, and whether they can actually deliver what they're promising before signing up.
I'm a real estate attorney, broker, and investor based in Maryland, and I work with clients on property purchases, contracts, and landlord-tenant matters. I've seen how important it is to understand what you're taking on before buying a rental property, especially when there are already tenants and lease agreements in place.
Thanks for asking this, @Kyle Herren! It's good that you're doing your research before jumping in. Happy to stay connected!
- 1dJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 968 posts · 662 votes
Kyle, start with the numbers, not the property type.
Full disclosure, I buy single-family, not multifamily — 236 properties in Memphis, all run the same way. Purchase under $100K, ARV $180K to $265K, rent at the 1% rule or better, and for 3BR houses Section 8 pays $1,395 to $1,950 here. The refinance is underwritten before I buy, DSCR at 70-80% LTV.
You can learn that math free, the same way Chris said: run real deals on paper until you can tell in one pass whether the rent carries the building. On the mentor programs, my test is simple. If they are selling you a promise to close instead of teaching you to underwrite, it is not worth it. The homework feels slow because it is the job.
Kyle, let's connect. Doing your homework before paying anyone is the right instinct.
I'd be careful with anyone who promises you'll close a deal, since nobody can really promise that, and most of what they cover you can pick up from people who've actually done it. It also helps to know whether you want steady income from it now or something bigger you build over time.
Finding good people to learn from is something I can help with, along with some resources. Do you own any property yet?
Just sent you a DM.
- 1dRyan BrownPro MemberReal Estate Agent · Louisville, KY · Member since 2022 · 85 posts · 30 votes
Kyle, I own a couple of fourplexes here in Louisville and recently sold a 10-unit building. I’d start by finding an agent who personally owns multifamily, a local commercial lender, and a property manager in the market you’re considering.
Pick a few actual listings and work through them. Ask the agent about pricing and rents, the lender what financing would look like, and the manager about operating costs and what they’d flag before taking over the building. That gives you something concrete to learn from.
Pay particular attention to condition. I’ve owned buildings in Old Louisville that were over 125 years old, and their maintenance costs were very different from newer multifamily. A spreadsheet doesn’t mean much if the repair budget isn’t realistic.
I wouldn’t say every paid mentor is a waste, but I’d want to know what they provide beyond information and introductions you can get elsewhere. Helping you close a deal isn’t enough—the goal should be helping you recognize which deals are worth buying and which ones to walk away from.
- 1dSheldon DavidBusiness MemberTechnology · Member since 2026 · 12 posts · 2 votes
Kyle, a useful starting exercise would be to analyze one real property before paying for a program. Work through the rent roll, actual operating expenses, financing, immediate repairs, and reserves. Keep track of what you understand and where you need help.
Also decide whether you’re targeting two-to-four units or five-plus units, because the financing and evaluation process can differ.
For a mentoring program, I’d ask for the full written cost, who actually provides the guidance, what work they review, and whether they earn additional compensation from properties or services they recommend. A promise to help you close deserves careful scrutiny—the purchase still needs to meet your criteria.
What size property and market are you considering?
Property IQ- Jacksonville Fl · Member since 2018 · 5 posts · 2 votes8h
@Sheldon David Thanks for the advice. Im going to dive in and start analyzing deals. I would love to get into 3-6 units but it all depends on the funding available. Which is something else i have to look into. Since my understanding is the fundings is different from 4 units to 5 units.
- Real Estate Agent · Boston, MA · Member since 2025 · 70 posts · 25 votes1d
Kyle, welcome — and good instinct doing homework first. I started with a single rental in Revere, MA in 2020 and have grown to 17 units across five buy-and-hold deals — Worcester 3-units in 2021 and 2024, a Worcester 4-unit and a Warren 6-unit this year. My best research was never a course: it was underwriting real listings every week with real expenses — taxes, insurance, water/sewer, repairs, vacancy, CapEx — and walking small multifamily buildings with local operators.
On paid mentors: be careful. Most of what I needed — financing for 2-4 units vs. 5+, inspections, inherited tenants, reserves — I learned by doing deal one, then asking specific questions here. If a program won't teach underwriting on your actual market numbers, skip it and keep your capital for a down payment.
Start small, buy for cash flow, and let deal #1 teach you. Happy to connect and compare notes — feel free to follow along.
Hi Kyle, one more practical angle: when you practice on a listing, build the numbers in a fixed order so you can compare deals. Start with the rent roll and check it against what similar units rent for nearby. Subtract vacancy, then taxes, insurance, utilities the owner pays, management, and repairs to get net operating income. Then set aside a realistic reserve for big items like roofs and boilers, since older buildings often need more than a flat percentage. Divide NOI by the price for the cap rate, then see what is left after loan payments to find cash flow. Ask for leases, a trailing 12 month expense statement, and tax bills, and compare them against what the seller claims. Insurance quotes and tax reassessment after a sale can change a deal a lot, so get real numbers before you commit. Repeat this on a few listings a week and the patterns show up fast.
Written with AI help, edited by me.
- Realtor · Columbus, Franklin County · Member since 2026 · 67 posts · 16 votes1d
Good instinct to do the homework first. Before paying anyone, here's a free exercise: pull 2-4 unit listings in your area and underwrite one a day. Use rent from recent leased comps (not the listing's pro forma), taxes and insurance at what you'd actually pay, and vacancy, repairs, capex, and management even if you plan to self-manage. Then check whether it clears a DSCR of 1.25x with a real loan quote. After about 30 of those you'll know what a deal looks like in your market, and you'll spot inflated rent rolls quickly. On mentor programs: be careful with anything that charges thousands up front and promises to 'help you close.' A good mentor relationship usually starts with you bringing analyzed deals to experienced local investors at meetups and asking them to poke holes in your numbers. Your local REIA is a cheap place to start.
Before paying anyone, I'd spend a month underwriting real listings: pull ten 2-4 unit properties in Jacksonville each week, check rents against actual leases, and run taxes, insurance, vacancy and repairs until you can sort a good deal from a bad one quickly. If you're open to living in one unit, that's the easiest first deal, since owner-occupied financing needs far less down than an investor loan. On the mentor programs, be very careful with anything that charges thousands upfront and promises a closed deal. Most of what they teach is free in these forums and at local meetups, and a good local agent or lender will walk you through a lot of it because they want your business.
- 1dJohn RacinePro MemberRental Property Investor · Casselberry, FL · Member since 2008 · 130 posts · 76 votes
Kyle, for multifamily, I'd start by scouring YouTube University for videos on how to underwrite a multifamily deal. Then practice on real listings. Be prepared: you'll likely underwrite a ton of deals and not see much good. That's normal, and it's how you learn what a good one looks like when it finally shows up.
Definitely look through the forums here as well. There's a ton of guidance on what vacancy rate to use, how much to set aside for reserves, and how to estimate what the taxes will be after you buy, since the seller's current bill usually isn't what you'll pay.
If you're able, join your local REIA, connect with people and get involved. Here in Orlando, the CFRI REIA has a multifamily subgroup, so if there's something similar near you, that's where you'll find people who own buildings. Bring a deal you've underwritten and ask them to poke holes in it. You'll learn more from that than from any program promising to get you to a closing.
- Member since 2026 · 15 posts · 4 votes18h
Kyle, the free-first advice here is right. One Jacksonville-specific piece from the financing side, since I'm a mortgage broker in Florida: decide early whether you'll live in one of the units. A 2–4 unit you occupy can be bought with far less down than a pure investment, and if you or your wife ever served, a VA loan can be used on a 2–4 unit you live in. That one decision changes which properties pencil out. Then get pre-approved before you start underwriting so you know your real payment, and plug actual insurance quotes into your numbers. In Jacksonville, flood zone and roof age swing insurance a lot, and that's where many small multifamily deals fall apart. On paid programs, be wary of anyone whose main promise is "we'll help you close," since many earn money on the deal they steer you into. Underwrite 20 local listings yourself first and you'll know quickly whether you need one.
Quote from @Kyle Herren:
Happy Monday!
I’m looking into starting in multifamily. I’m trying to do my homework about it. Does anyone have any advice or somewhere recommended to start my research? I also have seen a few companies that offer programs/ mentors that claim they will help me close on a deal. Are any of them worth it? Thanks for any information it’s all appreciated!
Hi @Kyle Herren, welcome to BP!
Getting started in multifamily investing is an exciting step, and doing your homework before jumping into your first deal is absolutely the right approach.From a lender's perspective, I would recommend focusing on a few key areas before investing in any mentorship program or committing to a property:
1. Learn How to Analyze Deals.
Understand cap rates, NOI (Net Operating Income), cash-on-cash returns, DSCR, operating expenses, vacancy assumptions, and realistic rental income. Knowing how to evaluate a property's actual performance is critical.
2. Start With a Manageable Property.
Depending on your experience and financial position, consider starting with a duplex, triplex, fourplex, or a smaller multifamily property before moving into larger apartment buildings.
3. Understand Your Financing Options.
Multifamily financing can involve conventional loans, DSCR loans, bridge financing, value-add financing, and commercial loans. The right structure depends on the property, its income, your experience, and your investment strategy.
4. Build Your Investment Team.
Connect with experienced multifamily investors, commercial real estate brokers, property managers, contractors, attorneys, and lenders. Having the right team can help you avoid costly mistakes.
5. Be Selective With Mentorship Programs.
Some mentorship programs provide valuable education and accountability, but be cautious of anyone promising guaranteed deals, funding, or returns. Research their actual track record, speak with previous students, and understand exactly what you're paying for.
At JCREIG Capital Funding, we work with real estate investors on multifamily acquisitions, value-add projects, bridge financing, and long-term financing strategies. We're always happy to discuss the lending side of multifamily investing and help investors understand what lenders look for when evaluating a potential deal.My biggest recommendation: Learn how to recognize a good deal before learning how to close one. The financing becomes much easier to navigate when you understand the numbers. Best of luck as you get started!
- 8hChris ColtonPro MemberInvestor · San Antonio, TX · Member since 2026 · 48 posts · 28 votes
Thanks Kyle, glad it helped. Chris Colton here in San Antonio. Keep it simple at first. Pick one listing, run the numbers, and write down what you learn from it. That habit adds up fast, and it sounds like you are already headed that way with the 3 to 6 unit range you mentioned.
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