going from single family to multifamily
I have dealt exclusively with single family up to this point but recently got interested in multifamily. I first thought I would by 4 duplexes side by side but when the numbers did not work out, I moved onto an 8 unit apartment building....(2 quad-plexes) but ultimately got outbid.
What do I need to know about multifamily in terms of buying them right? Almost everything I see is priced too high. In looking at financing, with a 20% down payment, if they can beat 1.2 DCR, it isn't by much and most only hit about .75.
Do I just need to be patient and wait for sellers to get realistic or am i looking at these deals wrong. I understood multifamily to be more efficient and yield better numbers. With what I am seeing in my Tulsa market, I am better off sticking with distressed single family units that I rehab, let season and cash out refi after rented.
What's the deal with breaking into the multifamily market?
Thanks