Commercial Multifamily Investor

[Nancy Olivares]

Hi everyone. I'm looking to invest in commercial multifamily properties in the Dallas market, primarily 20-40 unit value-add opportunities where improved operations can drive higher NOI and long-term returns.

My focus is on the north side and suburban area of Dallas, but I'm also open to reviewing strong opportunities in the urban area. I'm glad to join this community and start connecting with other individuals in the real estate market. 

[Bruce Lynn]

Hi Nancy...for some reason I don't think we have a lot of 20-50 unit buildings in DFW area and what we have I don't see turnover much.  One thing to think about is going for 40+ units.  Otherwise you are probably buying yourself a job, as it is tough to make the numbers work with smaller properties with professional assistance.  Typically you need 40 or more to have enough money and work to hire a full time PM and part time maintenance person.

A few meetings you might want to attend to hear about some failures and successes of investing in MF coming up.  Checkout meetup for Brad Sumrok on November 6th in Valley Ranch.  Also his Rat Race 2 Retirement later this month.

On Eventbrite you can find Jorge Abreau's Elevate Meetup on the 13th.

Both are excellent networking opportunities.

Cashflow will depend on your leverage and operating skills.  You'll probably need somewhere close to 50% down for comfortable cash flow these days.  Have you nailed down who your lender might be yet?  That's really one of your first steps before you ever probably even look at property as a new MF investor.  You want to know what kind of loan terms and leverage you can get and what their requirements might be....how much you will need to maintain in reserves, interest rate caps, fixed or floating rates, insurance costs, what kind of personal assets they will want to see from you or your key principal.

Good luck and best wishes.