Seeking advice: Really nervous about 1st multi-family property

Seeking advice: Really nervous about 1st multi-family property

Member since 2020 · 16 posts · 4 votes

Hello. I just entered contract for my 1st multi family property (and 2nd investment property). It is in Berea, Ky. I don't know anything about Berea, Ky! In doing my research, however, it does seem like a nice charming college town. The property is a 4-plex built in 1978 in a B- neighborhood. It is a cash flow move and looks like will net a minimum of $500 a month. Thoughts? Advise?  What should I look for in the home inspection report. Thank you in advance. I am extremely nervous. It is out of my comfort zone.

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  • Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
    5y

    @Tri Nguyen College towns have plenty of property management companies. Call on a few and pump them for information / possibly working for you. They know stuff. Are you in town to see the property? Time to gather a team.

    • Member since 2020 · 16 posts · 4 votes
      5y
      Originally posted by @Kathy Henley:

      @Tri Nguyen College towns have plenty of property management companies. Call on a few and pump them for information / possibly working for you. They know stuff. Are you in town to see the property? Time to gather a team.

      Thanks! I'll do that. 

  • Baltimore, MD · Member since 2018 · 431 posts · 281 votes
    5y

    Is it within walking distance of the college? That's either 1) on a bus line or 2) within half a mile of the college.  That is not within half a mile of the bus line. lol.  If so, can you rent it to students? Student rentals are able to charge a little more.  They stop paying less and don't hoard, but there is a chance of parties (depending on who you're getting in it).

    • Member since 2020 · 16 posts · 4 votes
      5y
      Originally posted by @Genny Li:

      Is it within walking distance of the college? That's either 1) on a bus line or 2) within half a mile of the college.  That is not within half a mile of the bus line. lol.  If so, can you rent it to students? Student rentals are able to charge a little more.  They stop paying less and don't hoard, but there is a chance of parties (depending on who you're getting in it).

      Thanks Genny!

  • Will GastonPro Member
    Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
    5y

    @Tri Nguyen What specifically are you nervous about?

    My experience with real estate investing and anxiety reduction comes from putting numbers on things.

    -Worried about how much the property will rent for? Use Zillow to seek comps in the neighborhood.

    -Worried about how much a new roof will cost? Ask the inspector what’s an estimated range for a new roof.

    -Worried about renting to students? Call some local PMs and find out what an average student turnover costs.

    More information will reduce anxiety. Keep digging in. You’ll figure it out.

    • Member since 2020 · 16 posts · 4 votes
      5y
      Originally posted by @Will Gaston:

      @Tri Nguyen What specifically are you nervous about?

      My experience with real estate investing and anxiety reduction comes from putting numbers on things.

      -Worried about how much the property will rent for? Use Zillow to seek comps in the neighborhood.

      -Worried about how much a new roof will cost? Ask the inspector what’s an estimated range for a new roof.

      -Worried about renting to students? Call some local PMs and find out what an average student turnover costs.

      More information will reduce anxiety. Keep digging in. You’ll figure it out.

      Thanks, Will! Makes sense. 

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