Goal 2023 Buying a 16 unit or larger multi family!!!
I am the kind of person who needs to "say it out loud" to people to hold myself to it! I am tired of feeling like I am dipping my toe in the water! For 2023 my goal is to purchase a large multi family by years end! Now for some this is gravy…. We have only purchase single family and currently STR them. I have always been one to go bigger or go home. Well I really do not accept losing or going home. I just keep working until I can make something happen!
please join me on this journey as I will be posting my progress here to remain accountable and not slide into easy!
#2023Goal
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#5 Multi-Family and Apartment Investing Contributor
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@Jennifer McPherson congrats on the goal and your current portfolio. I bought a 12 unit a few years ago and it has been my most profitable buy so far! Having all your tenants under one roof gives you economies of scale like never before. I have singles and doubles too but there is no comparison! So looking forward to your progress!
Quote from @Bjorn Ahlblad:
@Jennifer McPherson congrats on the goal and your current portfolio. I bought a 12 unit a few years ago and it has been my most profitable buy so far! Having all your tenants under one roof gives you economies of scale like never before. I have singles and doubles too but there is no comparison! So looking forward to your progress!
Thank you!!! I am really excited for 2023! Step one - in preparation I ordered a separate planner strictly for this goal. Step 2 - coming 1st of Jan (got way too many year end things the rest of Dec, holidays and even a week vacation to squeeze in!
Oh.. I see you are from Shelton - I grew up in Poulsbo, WA! lived in WA my first 30 years of life now am in Colorado!
@Jennifer McPherson we have the same goals!! Good for you. Our only problem is analyzing the deal and being 100% confident our numbers are right
@Bjorn Ahlblad how did you analyze your deal?
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Quote from @Joe Mathew:
@Bjorn Ahlblad how did you analyze your deal?
I had a "chance meeting" with one of the tenants as she was pulling into the garage, liked what I heard, and subsequently my dog and I did a thorough inspection of the neighborhood. Always bring your dog or borrow one to walk the area or you will look very creepy.
I did a projection of rents vs expenses using zillow for rents and 50% of that for expenses. I made a cash offer contingent upon inspection of property and financials. To me, walking the neighborhood and meeting a tenant are an essential part of the underwriting process.
The seller was very forthcoming throughout and had been operating a solid business. The building was built by his father and uncle and as a young man he did all the kitchens and cabinetry. I could tell selling the place was not easy for him.
Awesome! Would you be acquiring these properties with partners?
Syndications can be a great way to grow your portfolio. The cashflow will be a bit lower but so will your initial investment. Syndications can also be a fantastic strategy if you are looking to exit in the next 2 to 3 years.
Looking forward to hearing about your progress!
Quote from @Joe Mathew:
@Jennifer McPherson we have the same goals!! Good for you. Our only problem is analyzing the deal and being 100% confident our numbers are right
Congrats Joe on your goal too! Super exciting. I will use BP deal analyzer, also will be doing tons of research on my own, via Zillow and other platforms, research what has sold in the area, what are the rents in the area, is the area in a location that is up and coming etc! I have started just looking in various areas around the country to see where I really want to focus on. Our other properties are STR in TX, which I really love but the tax on property is crazy in TX (yes... it is much higher if you have a rental vs. personal home - you can claim homestead if you live in the property). We are able to mitigate the high taxes on our STR because we get a lot more money monthly with the STR.
I am also 100% confident that my numbers won't be right. In all the Single Family deals I have done the numbers have never ended exactly where I thought they would. Personally, for me it is a longer game - I know as long as I am making even a tiny profit, overtime it will only get better. I would love to hit a home run of course! I am also not very fearful in general, and I am thankful I was born with the attributes I have. It makes it easier for me to jump in and decide.
I look forward to seeing how your journey is going!!
Quote from @Justin Rademacher:
Awesome! Would you be acquiring these properties with partners?
Syndications can be a great way to grow your portfolio. The cashflow will be a bit lower but so will your initial investment. Syndications can also be a fantastic strategy if you are looking to exit in the next 2 to 3 years.
Looking forward to hearing about your progress!
I am not planning on acquiring with a partner at this time at least. But I will never say never! I have checked on Syndications but the issue for me is that it ties up a large amount of cash for a few years. But... I am not opposed to syndications, just have not really given it much thought really.
Here for this, thanks for the post! I am looking to get bigger in 2023 as well. Currently have 3 small multis and am ready to take the jump. I look forward to hearing about your progress!
Good luck!!
Quote from @Jennifer McPherson:
I am the kind of person who needs to "say it out loud" to people to hold myself to it! I am tired of feeling like I am dipping my toe in the water! For 2023 my goal is to purchase a large multi family by years end! Now for some this is gravy…. We have only purchase single family and currently STR them. I have always been one to go bigger or go home. Well I really do not accept losing or going home. I just keep working until I can make something happen!
please join me on this journey as I will be posting my progress here to remain accountable and not slide into easy!#2023Goal
Will you live there and manage it, like Fred and Ethyl Mertz (or Mr and Mrs. Roper from 3's Company), or will you manage from afar (or use a property manager)?
Class B or C?
Needing repairs or turn key?
Stabilized or non-stabilized?
Have you gotten cozy with a particular lender and made sure you meet all of their qualifications (you are no longer under Consumer Lending Protection with a 16 unit)?
Is your down payment ready to go?
Are you ready to go (If an attractive place came along this afternoon--are you ready to make an offer on it) financing and down ready to go, personal attitude ready to do this?
Just my 2 Cents.
Quote from @Ben Scott:
I know of two off-market 16-unit complexes in Oklahoma City. DM me and I can share the details if you're interested in that market.
DM coming atcha!!
I bought a 72 unit this past year after doing mostly single family and small multi's for a long time. I have managed quite a few medium size multi as well and while there are good things it is certainly a different animal on all fronts. Make sure you educate yourself and talk to folks that have been in it for a while before you jump in too far. Not saying it is not a good deal just saying be aware before you swim out farther than you can swim back if you know what I mean.
2023 is going to be our year! Good luck, looking forward to hearing about your progress.