Getting ready for first multifamily deal

3 Replies

Hello all,

I am trying to get into multifamily investing soon (by next year) and am thinking about purchasing a 3-4 unit as a first time home buyer and house hacking. My ultimate goal is to be in the commercial space and buy these much larger deals. The issue of course is that it will take a long time to save up enough money for a down payment for a commercial sized property. 

Do you guys believe house hacking a 3-4 unit apartment as a first time home buyer is a good way to accelerate my income so I can get into the commercial game quicker? Maybe hold it for a couple/few years and then sell it and use the profits as a down payment? I'm mostly concerned about buying a smaller deal like this because I won't be protected in a market downturn with only 2-3 tenants, and also the property not generating enough cash flow for it to really be worth it.

What do you guys recommend as a great place to start, knowing that the goal is to get into these larger commercial sized apartments as quick as possible?

Your friend,

Nick

Originally posted by @Nick Mulligan :

What do you guys recommend as a great place to start, knowing that the goal is to get into these larger commercial sized apartments as quick as possible?

By commercial I take it you mean a multifamily? If so, how big/cost? If you want to get there quickly the best way might be flipping. Maybe you could buy a 4plex that needs renovations with an FHA 203k loan and then 'flip' it after living there a year or two.

Originally posted by @Eric James :
Originally posted by @Nick Mulligan:

What do you guys recommend as a great place to start, knowing that the goal is to get into these larger commercial sized apartments as quick as possible?

By commercial I take it you mean a multifamily? If so, how big/cost? If you want to get there quickly the best way might be flipping. Maybe you could buy a 4plex that needs renovations with an FHA 203k loan and then 'flip' it after living there a year or two.

Yes, by commercial I mean multifamily (5 units and up), and for size, I want to get into 16+, and eventually into larger and larger apartments with 100's of units. 

Hey Nick,

I am a multifamily investor that syndicates deals with other investors.  A great way to get into a larger apartment deal is to go in as a passive investor with others.  It gives you experience as well as being able to learn from the general partners on how these large complexes are run, how investors get paid, etc.  I would love to add you to my multifamily newsletter I send out to my investors to keep them informed of what apartment deals I am working on as well as opportunities to invest.  Just shoot me your email.  Have a great day.

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