Hi. New to multifamily, though have a rental portfolio of 9 rentals (SFRs, townhomes etc) that we have managed for some time. will be completing a 1031 exchange on 2 of our properties and targeting small/med multifamily (10-30 units). Live in KC metro. I have read the various blogs/opinions/books etc and it seems like the general consensus is most people don't use buyers agents in this category as we are expected to kinda "know the ropes" already. while we have a good sense of real estate investing in general, we don't have experience with these bigger properties and wondering how people have found advisors etc to consult etc to help through the first few purchases (not including just hiring a buyer's agent...)
Investor · CT · Member since 2022 · 36 posts · 18 votes
1y
I think where the benefit from agents will come in is finding off-market deals. If you have a good agent, who is "in-the-know", he will be in contact with owners or other agents that have opportunities that are not on loopnet, crexi, etc.
The biggest difference will be financing the deal. When it comes to financing, banks will look at this as a commercial property and will underwrite it based on the income and expenses the property will generate. So you'll need to get a certain DSCR ratio (typically 1.25x) as well as a LTV (75%-80%). The amortization will probably be 20 years, you can ask your lender to amortize it over 25 years if they have that product. Also, there is sometimes a balloon payment after 10-15 years. It really depends on your lender and the product they have for a commercial RE loan.
It sounds like you're being very thoughtful as you transition into multifamily investing — which is key for long-term success.
We are just breaking ground on two new projects in South Georgia — one 12-unit and one 24-unit — that fit the size you're targeting. We also provide full-service property management, ideal for out-of-state investors.
We specialize in the development, construction, and management of multifamily properties across the Southeast, with a focus on sustainable growth and strong property performance. Currently, own and manage over 700 doors with close to 300 more looking to be completed by year end.
I'd be happy to share the project details and timelines if you’d like to learn more. Feel free to message me anytime.