New to multi family Investing... Is this a good deal??

15 Replies

Good evening, I am looking to purchasing a multi-family home & house hack in the DC metro area. However, this area is really expensive.

I have read:

Building wealth one house at a time

Quit your F**king Job

Real estate: 25 best strategies

Rich dad’s guide to investing

...And a couple others...

Type of Financing: VA loan

Housing Allowance Pays the mortgage... So cash flow will be upwards of $2,000 per month with both units rented... This seems like a good deal for the area... Please provide any thoughts? Comments? Or advice?

https://www.zillow.com/homedetails/114-Forest-Ave-Catonsville-MD-21228/36197357_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare

Only you can decide if a deal is "good enough" not anyone else. With that being said, ask for rent rolls (if rented), rental licenses, lead certificates, and be sure to have a home inspection - Baltimore County isn't as regulated as Baltimore City, so it's more landlord friendly.

I would caution you to not factor your housing allowance into the deal analysis. Make sure its a good cashflow property without the allowance before moving forward!

@Crystal A. that is such a beatiful & historic house! I don't have much to offer to the "deal" conversation as I'm not familiar with the market, but I'd encourage you to explore short-term rental/Airbnb options for the house-hack. In the right markets this can often be much more profitable than long-term rentals! Especially in a cool house like that. I'd imagine the DC/Baltimore market is pretty strong for tourism & other short-term needs. Best of luck!

@Crystal A.

In my short time into this business, I have realized the importance of having feet on ground rather than looking at pictures, etc.. I would suggest you speak to property managers in the specific area to get to know the market trend and if your deal that looks good on paper is actually a good deal. Good luck!

-Sg

3 units for 700K in catonsville, I would not pay for it.

1 bedroom is good probably will rent easily, 2 bedrooms is also good,but 4 bedrooms 3 bathrooms units will have some vacancy at times, many renter will look for a single house or full townhouse for that price, and it is over priced for an investor property in catonsville.

A multifamily building's value is based off of its income/cap rate. Check out this page for local cap rates. https://www.benfrederick.com/f... Then calculate this buildings cap rate and determine if its a good deal.

I like the points @Ozzy Sirimsi made about vacancy.

Make an offer based on the value not the list price.