Im 21 years old from Massachusetts just starting out, and I'm looking to purchase my first Multi family home.I have been looking for about six months on MLS and can't seem to find any Deals.Where else should I look?
For my first house I did not look for a "steal", or even an excellent "deal". I just looked for something in my price range that met my rental criteria that I knew would cashflow. I also made sure I didn't overpay, but I wasn't looking for something crazy low either. Of the three houses I've bought so far, two were probably average market value and one was on the low end of the market value range but definitely not a steal.
When I first started looking I thought I just HAD to have a steal. But realized that since my since my intent was to hold these as rentals, I really needed to be concerned about cashflow first.
But, if you are intent on finding a deal, or at least something at the low end of market value here's what I do:
1. Look for ugly houses. In my area, there are plenty of new homes and remodeled homes. So ugly ones tend to sit awhile and it is such an easy fix to remove wallpaper and paint. I can spot a "little old lady" house pretty easily by the pics online. They're great, well maintained but ugly so the price is lower.
2. Look for houses that have been for sale awhile. Yes, sometimes there are reasons the houses aren't moving, but a lot of times the reasons don't matter to me as a landlord. If its ugly, or maybe a barking dog next door, or even on a slightly busier road. Those are things that renters are less likely mind but make homeowners keep looking.
3. Don't be afraid to make an offer. If there is an ugly house that's been on the market a year, make an offer. The worst that can happen is they'll say no. Some people ask for the moon knowing they won't get it.
4. Finally, you may need to expand either your search criteria. Try a single family home, or something 5 more miles away. Maybe the area you're looking in isn't prime for rentals right now.
has some excellent suggestions. You might also consider looking at Craigslist for rental properties and directly contacting the owner to see if they are interested in selling.
You can try homes.com and use the criteria search for multi-family. You might also try looking for some wholesalers in your area.
@Cameron Cocchi If you're looking for true multi-family (5+ units), I would suggest contacting a commercial broker. There are plenty of multi-family listings that don't make it on the MLS which are listed with commercial brokerage firms. One site that I visit on occasion is Cityfeet.com (Click on the arrow next to "for sale" and the rest of the menu appears).
Hope this helps.
Make sure you are being reasonable! We have altered our "plan" over the years because our house type (multi-plex) just didn't work. We did MUCH better with single family homes.
Second the key is to get your foot in the door. Ever sale we have done since the first has been better than the previous. So get started! Don't worry about getting a home run but getting a great first deal. Babysteps make you more over time!
I love this web site. I am learning so much. Awesome.
@Cameron Cocchi Welcome.
What makes a Deal for you?
looking for something close to me (within 20 miles),below market value with good rents.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). There are nearby meetings in Rockland, Taunton and Plymouth.
Consider checking out HUD homes for small multi's owner occupied gets first crack.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
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