Updated over 6 years ago on . Most recent reply
New to Multi Family Investing
Hey ya'll, I'm 27 and I've jumped in to starting down the multi family investing path. It's something I've always wanted but thought you had to have millions of dollars to start. After educating myself I realized it is possible to start without that much cash. I currently own an insurance agency and I've started a land investment company with a partner, now I'm looking to move to multi family to really build wealth. I'm looking to start in the DFW, Houston and/or San Antonio areas.
All that to say, I'm looking for the best way (not the easiest way) to get into this industry. I'm willing to work hard and plan on doing so, but realize with some help it will probably help me avoid some mistakes.
Most Popular Reply
@Will Allen Take a look at some listings that interest you and run the numbers through a BP calculator. Put in the estimated purchase price, any rehab, rents, expenses, etc. and see what kind of return you would get. The more properties you do this for in your areas of investment the better idea you will get of what a good deal looks like.
I'm currently looking specifically for BRRRR deals, so I'm looking for properties that I can acquire and rehab for less than 75% of After Repair Value (ARV). And then the rents also need to cover expenses including a mortgage for that 75% plus cash flow at least $200/door (you may be willing to settle for less or demand more, that's up to you). Doing this over and over has given me some insight into which properties I can just skip over.