Updated about 2 years ago on . Most recent reply
Learn to LOVE small multfamily Real Estate
In 2018, I purchased my first multifamily property. It was a 15-unit mobile home park in a town called Centerfield located in Utah.
I noticed the seller had another three acres for sale down the street and I asked to have it included in the sale and the seller did.
Probably because he was having such a hard time selling both he was willing to do whatever he needed to liquidate them.
I bought both the mobile home park and the three acres down the street for $230,000, which together in 2018 appraised for $300,000.
By the way, I was the fourth buyer to have this deal under contract three canceled before me.
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Fast forward a couple of years and the home next door came up for sale, I bought that one for $190,000. Before I closed I went to the city and asked for them to allow me to expand from 15 spaces to 33 spaces with the land from the home and they approved us on the spot.
I asked the bank to pay for the expansion and they agreed in 2020 the future value appraisal not considering the house came in at $1.8 million.
What I want you to take away from this is that small multifamily real estate is often a pearl found in the mud. They are poorly managed by nonprofessional owners and their potential is not being tapped into.
Since this first small multifamily property I have purchased another 8 multifamily projects bringing my total units I own to 154 at 32 years old.
It is not rocket science so stop acting like it is!
The picture below is the community today, we are still bringing in homes (We decided to do all new homes) we are slowly but surely filling each and every space. Based on our market today I believe this community when full is worth about $2.5 Million and we only owe $450,000.
Similar to Cody Sanchez buying businesses there are millions of multifamily properties that owners need to get out of so learn to give them a hand!
Most Popular Reply
There is a really nice sweet spot for small multi-family. Too small for large institutional investors and too daunting for casual real estate investors. With SFR at a bit of standstill, I wouldn't be surprised to see more institutional activity; The Veritas's of the world, etc.