Commercial Multifamily Investor

Rental Property Investor · TX · Member since 2025 · 10 posts · 2 votes

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.

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Bruce Lynn

Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes

11mo

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.

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
11mo
Quote from @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.

Hey @Nancy Olivares, welcome to the BP Forum! Are you targeting a certain $/door? How much value-add are you comfortable with on a deal? Are you targeting a certain IRR or EMx over a 5-10 year period? How close to downtown Dallas are you OK with? Would you look at something in Wylie?
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Nancy Olivares
OP
Rental Property Investor · TX · Member since 2025 · 10 posts · 2 votes
11mo
Hi Jaycee, appreciate the welcome. My current focus is value-add multifamily in the Dallas area submarket, ideally in the 20–50 unit range. I'm open to moderate renovations where there's a clear path to increase NOI. Depending on the property, a light-to-moderate renovation, would be $800-$2,500 per unit. I'm flexible on price per door depending on location and condition, though I'm primarily targeting strong cash flow and a 14–16% IRR range over a 5–10 year hold.

I’m open to markets like Wylie if the fundamentals support stable long-term growth. I would like to hear your take on that submarket, and your perspective on other Dallas-area markets such as Plano, McKinney, Allen, Frisco, Prosper, and Celina - particularly the areas you feel are showing strong fundamentals right now.
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- Jaycee GreenePro Member
  Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
  11mo
  Quote from @Nancy Olivares:
  
  Hi Jaycee, appreciate the welcome. My current focus is value-add multifamily in the Dallas area submarket, ideally in the 20–50 unit range. I'm open to moderate renovations where there's a clear path to increase NOI. Depending on the property, a light-to-moderate renovation, would be $800-$2,500 per unit. I'm flexible on price per door depending on location and condition, though I'm primarily targeting strong cash flow and a 14–16% IRR range over a 5–10 year hold.
  
  I’m open to markets like Wylie if the fundamentals support stable long-term growth. I would like to hear your take on that submarket, and your perspective on other Dallas-area markets such as Plano, McKinney, Allen, Frisco, Prosper, and Celina - particularly the areas you feel are showing strong fundamentals right now.
  
  @Nancy Olivares How many properties/units do you currently own?
  [email protected]
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Nancy Olivares
OP
Rental Property Investor · TX · Member since 2025 · 10 posts · 2 votes
11mo
I’m currently building my presence in the commercial multifamily space. I'm focused on sourcing my first acquisition and growing my portfolio in the Dallas market.
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Denise SuppleeBusiness Member
Realtor · Willow Grove, PA · Member since 2017 · 996 posts · 647 votes
11mo
Hi @Nancy Olivares, welcome to the community!! Keeping an eye on urban deals can definitely diversify your opportunities. Engaging with local operators and brokers will be key to finding off-market or under-the-radar deals.
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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
11mo
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.
2 Reply
Nancy Olivares
OP
Rental Property Investor · TX · Member since 2025 · 10 posts · 2 votes
11mo
Hi Bruce, I completely understand your point. I’m open to broadening the range and looking at something closer to 50–65 units. I understand that with smaller properties it’s harder to make the numbers work when hiring a full-time property manager and part-time maintenance person, so I’d like to focus on something that can sustain that setup.
I’ve been speaking with a few lenders to get a better understanding of the available loan terms and leverage options, especially as I narrow down what kind of deal structure and financing terms will work best for me. Also, thanks for mentioning the upcoming events. I'll be attending the Meetup on the 13th that's being hosted by Jorge Abreau.
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