Trying to Buy my Frist Multi Family Rental property

1 Reply

hello BP community,

So I got pre-approved bank loan now I'm looking to buy a multi family rental in Fresno, CA i've been looking for multi family, duplex, triplex quad plex. But my question is I've been running the numbers I'm not sure if I'm running them right on the calculators. But is there a sheet somewhere on bigger pockets that would help me calculate the repair cost? I have a realtor and I went and checked out a few properties but I'm not sure what to look for besides obvious repairs? I'm not sure how to evaluate the areas on aefficient rating scale  surrounding these houses? I would appreciate any help.

Thank you

Tony

There's a flipping book or two out there that walk you through repair costs... you can study those.  Another thought is if you find a place you like, get an offer in on it (assuming you haven't noticed anything major), get your inspection, and get a contractor to bid the items noted in the inspection.  There are a lot of protections in place to keep us from getting in real trouble... such as the title company doing all there stuff, and the appraiser doing his thing.

Neighborhoods are subjective... and that's the point.  Are you in an area that you want to live in?  Is it an area you would be ok living in if you were on a tight budget?  If you could afford the rent there, is there another neighborhood that  you'd prefer to live in?

As to comparing the different options, what I've found is that if you're working with an agent, looking at properties on the MLS, the properties are not going to be drastically different. One will sell for less because it's worth less.... not because it's a great deal. So if you have a trustworthy real estate agent, pick one that you would like to live in and go buy it if the numbers work for you.