How do I learn about investing in Multi-Family properties?

[Shawn C.]

Hello, 

I have been investing in SFR fix and flips, new construction and wholesaling and well as purchasing NPN's. I really want to get into multi family investing like apartment buildings but I don't know how to get started or what I am doing. Can anyone suggest a good resource(s) for learning this?

any and all assistance is greatly appreciated. 

[Azeez K.]

Hi @Shawn C.

Start with the basics i.e. Education

1. Financials: Learn financial concepts of evaluating a MF property. 

• Income Approach to Valuation
• CAP Rates
• Debt Service Coverage Ratio
• Cash on Cash Return
• IRR
• ..Others google
• Guidelines - 50% Rule

2. Reading: Book - Multi-Family Millions - David Lindahl | BP Blogs & Forms | How to buy a small Multi-Family Property

3. Evaluate MF Properties - Constantly look at MF properties in your area and evaluate the MF properties. The key is to identify what makes a good deal vs. a bad one. Gaining a sound understanding of the financial concepts will help you in this area. 

4. Network: Network with the following individuals

• Commercial Brokers - 
• Property management companies
• Multi-Family Investors in your area. Use the BiggerPockets meet section to seek investors in your area
• Mortgage Brokers specializing in MF properties. Understand the Financing options

5. Take Action - Place offers on MF properties 

In regards to tips for finding Multi-family properties:

1. Reach out to Realtors in your farming area and set-up different searches for MF properties that match your criteria.

2. Property Management companies - seek out a few property management companies/property managers in your farming area and inquire about properties or landlords wanting to off-load MF properties.

3. Network - with fellow investors, property managers, Realtors, wholesalers etc and let them know you are looking for MF property to acquire.

4. Auction - Periodically look at auction websites such as johndixon/hudson marshall as they have MF properties for Auction. You don't need to pay all cash in most instances as you can finance and close these properties in 30 days.

5. Commercial Site: Check out sites like LoopNet/cityfeet for MF Properties.

6. Commercial Broker sites- Check out commercial broker sites like BullRealty and individual broker sites as they sometimes list smaller MF properties could be duplex, triplex etc.

7. Craigslist - You can find some MF properties on Craigslist. However, I have never had luck with this approach.

8. Marketing - Send letters to MF property owners.

Good Luck and Much Success!