Newbie to Multi-family Investing

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Brandon VukelichBusiness Member
Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 547 posts · 457 votes
3y

I would say it depends if you intend to owner-occ the property using FHA, VA, etc. or non-owner occ and go conventional, hard money, all cash. Also need to consider if you intend to hire a PM or self-manage. Going alone or bringing in partners?

Yes, most turn-key will be found in the MLS. Sometimes FSBOs on Zillow or Craigslist or within other investor groups (live or online).

The #1 issue I see with new investors is analysis-paralysis.  Too many afraid to pull the trigger on an offer, let alone close a deal.  Many are looking for unicorns on their first one.  Your first one may not be a home run but you'll gain massive experience and knowledge.  Of course, it depends on your goals but if you're just getting started and you're probably "younger" so I would focus on better appreciating properties over higher cash flowing ones. I don't know Rochester, NY but in my opinion, stick to properties in growing areas (jobs, rents, appreciation, population) that may offer lower returns at first but should appreciate well and see cash flow improve over time. This can allow you to build more equity and scale up.  

Either way, thankfully we all don't want the exact same thing.  It's already very competitive out there as it is.  Best wishes on your investing journey!

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  • Preston Garcia
    Real Estate Agent · Rochester, NY · Member since 2020 · 148 posts · 28 votes
    3y

    Hey, you can find plenty of turn key properties on the MLS. That's why I find all of the deals for my clients. Financing strategy wise, most people go the mortgage route, some do cash, and a minority use seller financing. I lot of clients want to go the seller financing route, but most sellers don't want to hold a mortgage. The most popular strategy over here is Buy and Hold. There are some investors that use the BRRRR strategy and some even fix and flip.

    0Reply
  • Hamp Lee IIIPro Member
    Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
    3y

    Welcome to BiggerPockets! Check out the Neighborhood Assistance Corporation of America (NACA).

    NACA was formed in 1988 and provides an affordable option for potential first-time buyers:

    ✅ No down payment

    ✅ No closing costs or fees

    ✅ No mortgage insurance

    ✅ No consideration of credit score

    ✅ Below market fixed interest rate

    There are several requirements to be eligible, starting with attending one of their workshops.

    https://www.naca.com

    I wish you all the best.

    0Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 547 posts · 457 votes
    3y

    I would say it depends if you intend to owner-occ the property using FHA, VA, etc. or non-owner occ and go conventional, hard money, all cash. Also need to consider if you intend to hire a PM or self-manage. Going alone or bringing in partners?

    Yes, most turn-key will be found in the MLS. Sometimes FSBOs on Zillow or Craigslist or within other investor groups (live or online).

    The #1 issue I see with new investors is analysis-paralysis.  Too many afraid to pull the trigger on an offer, let alone close a deal.  Many are looking for unicorns on their first one.  Your first one may not be a home run but you'll gain massive experience and knowledge.  Of course, it depends on your goals but if you're just getting started and you're probably "younger" so I would focus on better appreciating properties over higher cash flowing ones. I don't know Rochester, NY but in my opinion, stick to properties in growing areas (jobs, rents, appreciation, population) that may offer lower returns at first but should appreciate well and see cash flow improve over time. This can allow you to build more equity and scale up.  

    Either way, thankfully we all don't want the exact same thing.  It's already very competitive out there as it is.  Best wishes on your investing journey!

    Broker at Multifamily Properties519 Reviews
    WebsiteView Page
    1Reply
  • Trevor Schmitt
    Rental Property Investor · Fargo, ND · Member since 2017 · 129 posts · 107 votes
    3y
    Quote from @Gerald Moore:

    Interested in getting started investing in 2-4 unit Multifamily properties in Rochester, NY. 

    As a newbie please provide suggestions to find good turn-key properties?  

    Please provide some financing strategies?

    Growth strategies?

    Thanks


     Hi Gerald! As you know, there is a ton of ways to answer your question. The bit of advice I would give to you as someone who is getting started investing in 2-4 unit multifamily properties is to consistently analyze as many properties as you can. For the next 3 / 6 / 9 months, run the numbers on every 2-4 unit property that hits the market.  

    At this point a "good" property can look much different to everyone... by running the numbers on a bunch of properties you will start to be able to identify "good" and "bad" properties. This will allow you to be more specific on what it is you are looking for, and most importantly afford you the confidence to act quickly when you find the right property! 

    0Reply
  • Gerald Moore
    OP
    Member since 2022 · 6 posts · 0 votes
    3y

    @Preston Garcia Thanks for the advice

    0Reply
  • Gerald Moore
    OP
    Member since 2022 · 6 posts · 0 votes
    3y

    @Hamp Lee III I'm familiar with the NACA program and I wish I would have done that first beform aquiring my first family home.

    0Reply
  • Gerald Moore
    OP
    Member since 2022 · 6 posts · 0 votes
    3y

    @Brandon Vukelich you're correct the analysis paralysis is real. But I'm definitely ready to pull the trigger. Looking for properties on the lower price end so that my mistakes won't ruin me. Definitely some good advice. The goal is to pull the trigger on something by the fall.

    Do you know of any good National Hard Money lenders.

    Thanks

    0Reply
  • Matthew DrouinPro Member
    Developer · Rochester, NY · Member since 2016 · 406 posts · 339 votes
    3y

    @Gerald Moore

    I’m glad you are considering Rochester!

    Beware of the lower price points though! You won’t be able to attract good tenants. Good tenants want to live in better areas and you have to pay for them!

    Buy the most expensive most desirable real estate you can find that cash flows!

    Are you living in Rochester currently?

    Podcast Guest on Show The $150K “Stolen” Rental Property and How to Avoid a Real Estate Scam
    0Reply
  • Matthew DrouinPro Member
    Developer · Rochester, NY · Member since 2016 · 406 posts · 339 votes
    3y

    @Gerald Moore

    Also Quickline Capital is a hard money lender that services Rochester!

    Podcast Guest on Show The $150K “Stolen” Rental Property and How to Avoid a Real Estate Scam
    0Reply
  • Zachary Ware
    Member since 2022 · 405 posts · 455 votes
    3y

    You have a lot of options when looking for a property of this size! 

    1) Sourcing: This type of property can be sourced from the MLS, online searches, agents, other investors, and even some wholesalers. I would recommend that you reach out to investors and real estate groups in the area, and attend as many networking events as you can. Creating these relationships early on can prove invaluable in the long run.

    2) Financing: This depends on whether you will be looking to owner-occupy or not. If you will be living in one of the units, conventional or FHA with low down payment options might be suitable. Keep in mind that these loans have more stringent guidelines and requirements.
    If you are not living in one of the units or do not meet all the guidelines, a DSCR loan might be the right choice. DSCR loans typically require less documentation and focus on the income of the property rather than your personal income.

    3) Growth: It's important to give yourself the time to learn and make mistakes as you start out. Each deal will provide valuable lessons for future investments. Building a reliable network of professionals is crucial. Your team may consist of a Real Estate Agent, Property Manager, Mortgage Lender, Real Estate Mentor/Coach, Real Estate Attorney, and Accountant/Bookkeeper. While you may require these roles at different stages of your journey, it's beneficial to start networking and connecting with people in the real estate industry early on

    Goodluck! 

    1Reply
  • Edwin De leon
    Investor · bronx, NY · Member since 2008 · 265 posts · 42 votes
    3y
    Quote from @Trevor Schmitt:
    Quote from @Gerald Moore:

    Interested in getting started investing in 2-4 unit Multifamily properties in Rochester, NY. 

    As a newbie please provide suggestions to find good turn-key properties?  

    Please provide some financing strategies?

    Growth strategies?

    Thanks


     Hi Gerald! As you know, there is a ton of ways to answer your question. The bit of advice I would give to you as someone who is getting started investing in 2-4 unit multifamily properties is to consistently analyze as many properties as you can. For the next 3 / 6 / 9 months, run the numbers on every 2-4 unit property that hits the market.  

    At this point a "good" property can look much different to everyone... by running the numbers on a bunch of properties you will start to be able to identify "good" and "bad" properties. This will allow you to be more specific on what it is you are looking for, and most importantly afford you the confidence to act quickly when you find the right property! 

     @Trevor Schmitt Hey trevor thanks for this suggestion, can you clarify more on what steps would take to run the numbers to identify good and bad properties, what are you looking for to determine its good and bad.

    0Reply
  • Ali Nichols
    Investor · Member since 2022 · 235 posts · 127 votes
    3y

    @Gerald Moore with this thread coming back to life, how is the process going? Found some acquisition opportunities as of late? 

    0Reply
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