I have been looking for Multifamily deals for a while now but nothing came across with good returns.
My questions are
what constitutes a good return for you guys 6% CAP Rate the Norm now?
should I start small 5 to 10 doors or go big 200 Plus
let me know what do you guys think and how did you guys start.
what to look for as a value-added and how to spot good deals
thanks for all your help in advance
Hey Johnny great job on wanting to get started! From what I've read buying a residential property (1-4) is easier to obtain financing on. Have you considered starting with a 4 unit, gaining experience and then going multifamily? Good luck!
If you have no prior experience, then 1-4 is the way to go because lenders will be hesitant to lend you $$ on a 200 unit deal.
If you want to get into a bigger deal, partner up with someone more experienced.
Or if you have experience, then go for larger deals as long as the cash flow numbers work out!
Starting with a residential MFH (up to four units) will also allow you to get regular financing, although under your personal name. You can definitely start with 5-10 doors as you mentioned. You just need to simultaneously start talking to lenders to find out what the requirements are and get that lined up.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing