Need your advise on how to start Multi Family Investing

[Maria Rina Boidon]

Hi. I need some guidance. I am new here in Bigger Pockets and I purchased a rental property in San Antonio, Texas back in 2019 with little knowledge back then, in real estate. Now the property is about $300,000 as per Redfin estimate and I still owe about $150,000 with the bank on this loan. It has positive cash flow of $150/month. What do you suggest I do if I want to start investing in multi family? Really appreciate your advise. Thank you in advance.

[Steve Seger]

@Maria Rina Boidon -  Your options can vary based on your current financial position and investment goals. If you are newer to investing and would be willing to live in the same building as your residents, I think considering a house hack could be a good place to start and learn. You could purchase a multifamily property, live in one unit, and rent out the others. This can help you cover your mortgage while you build equity and gain more experience managing multiple tenants and building out better systems and processes if you do decide you want to pursue larger properties. 

[Wale Lawal]

@Maria Rina Boidon

To invest in multifamily properties, leverage your equity through cash-out refinancing, Home Equity Line of Credit (HELOC), or selling the property. Explore financing options like conventional, FHA, commercial, and DSCR loans. Analyze deals using key metrics and build relationships with professionals. Consider house hacking to cover mortgages. Start looking at multifamily deals, analyze deals using tools like BiggerPockets, learn about multifamily investing, and network with local investors.

Good luck!

[Kim Lisa Taylor]

We have many multi-family syndication clients. All of them who have gone on to do more and bigger deals have started our with a real estate trainer/coach. @Gino Barbaro has an excellent education and coaching program. I suggest you reach out to him. 

[Maria Rina Boidon]

Thank you so much for your response, Steve. I really appreciate it. At this point, a house hack might not be the best option for me because the housing costs in California are too high. I’m considering a multi-family property in another state. By the way, do you have any suggestions for a state where multi-family investments would be a good idea?

Quote from @Steve Seger:

@Maria Rina Boidon -  Your options can vary based on your current financial position and investment goals. If you are newer to investing and would be willing to live in the same building as your residents, I think considering a house hack could be a good place to start and learn. You could purchase a multifamily property, live in one unit, and rent out the others. This can help you cover your mortgage while you build equity and gain more experience managing multiple tenants and building out better systems and processes if you do decide you want to pursue larger properties. 

[Maria Rina Boidon]

Thank you so much for your response, Wale. I really appreciate it. The HELOC might work for me. By the way, do you have any suggestions for a state where multi-family investments would be a good idea? Quote from @Wale Lawal:

@Maria Rina Boidon

To invest in multifamily properties, leverage your equity through cash-out refinancing, Home Equity Line of Credit (HELOC), or selling the property. Explore financing options like conventional, FHA, commercial, and DSCR loans. Analyze deals using key metrics and build relationships with professionals. Consider house hacking to cover mortgages. Start looking at multifamily deals, analyze deals using tools like BiggerPockets, learn about multifamily investing, and network with local investors.

Good luck!

[Maria Rina Boidon]

Quote from @Kim Lisa Taylor:

We have many multi-family syndication clients. All of them who have gone on to do more and bigger deals have started our with a real estate trainer/coach. @Gino Barbaro has an excellent education and coaching program. I suggest you reach out to him. 

Thank you so much for your response, Kim. I really appreciate it. I really think I need a real estate coach. I will look into @Gino Barbaro. Thanks for sharing. 

[Steve Seger]

Quote from @Maria Rina Boidon:

Thank you so much for your response, Steve. I really appreciate it. At this point, a house hack might not be the best option for me because the housing costs in California are too high. I’m considering a multi-family property in another state. By the way, do you have any suggestions for a state where multi-family investments would be a good idea?

Quote from @Steve Seger:

@Maria Rina Boidon -  Your options can vary based on your current financial position and investment goals. If you are newer to investing and would be willing to live in the same building as your residents, I think considering a house hack could be a good place to start and learn. You could purchase a multifamily property, live in one unit, and rent out the others. This can help you cover your mortgage while you build equity and gain more experience managing multiple tenants and building out better systems and processes if you do decide you want to pursue larger properties. 

@Maria Rina Boidon - It's difficult for me to say, as I have limited experience with out-of-state investing. However, finding a mentor or a partner with experience could be a great first step to help guide you through your first deal and identify the right market for you. 

[Justin Moy]

@Maria Rina Boidon Tough to really dive in with the high level info but first I'd determine how you want to invest in multifamily. If through a syndication passively or actively as a managing partner, or if you mean smaller multifamily (2 - 4 units) which are still classified as residential. 

If passively through syndication - Start looking for strong operators or fund managers with good deal flow. More isn't always better, look for quality and learn how to do due diligence on deals. I will DM you a helpful resource on this. 

If actively through general partnership in larger apartments - Think of what value you want to fill. The big ones are raising capital, underwriting / finding great deals, or managing assets. All take a different skillset to be good at. 

If looking for 2 - 4 unit properties, you can acquire these through traditional paths like you found your current investment. Local residential brokers or property wholesalers are probably great resources for you 

[Paul Landman]

Have you considered investing in a syndication deal? There are many groups out there that advertise their deals. The advertised deals require you to be an accredited investor. There are also deals that accept non-accredited investors, but they are harder to find.

If you can bring in capital from others, you could potentially get onto the General Partner side of the deal which will provide you great learning. That's how I got involved in MF investing. I am not acting as an Asset Manager for an investment firm across multiple properties.

Please reach out if you would like to learn more.

[Wale Lawal]

Quote from @Maria Rina Boidon:

Thank you so much for your response, Wale. I really appreciate it. The HELOC might work for me. By the way, do you have any suggestions for a state where multi-family investments would be a good idea? Quote from @Wale Lawal:

@Maria Rina Boidon

To invest in multifamily properties, leverage your equity through cash-out refinancing, Home Equity Line of Credit (HELOC), or selling the property. Explore financing options like conventional, FHA, commercial, and DSCR loans. Analyze deals using key metrics and build relationships with professionals. Consider house hacking to cover mortgages. Start looking at multifamily deals, analyze deals using tools like BiggerPockets, learn about multifamily investing, and network with local investors.

Good luck!

 Houston, TX is a good place for multi-family investments.

[Chris Seveney]

@Maria Rina Boidon

I think the question is what is your knowledge now. Multifamily is a different game from single family and it also comes at a higher price tag = greater risk. I always tell people to be cautious to make the jump, especially depending on experience as many in real estate made money last few years because of economy not because of management.

This is a question really only you can answer but just want to mention this