New to the Multi-Family investing world!

New to the Multi-Family investing world!

Allen, TX · Member since 2016 · 12 posts · 6 votes

Hello All,

Just most recently stumbled upon the potential of multi-family property investing.  I have a few questions/request that I hope the community here could help me out with to get me up to speed.  Looking to make a investment within the next 2-4 months hopefully.  Here's a little background on myself to start:

- Age: 29, Degree: Finance & Accounting, Current Occupation: Sr. Financial Analyst FP&A, Hobbies: Fishing, First House Bought: 2012(2-story townhome), Investing Exp.: Stocks/Market Securities: 10 years, Real Estate: 0 years

Questions/Request:

1) As an investor, what do you prioritize in importance when it comes to price/unit, capitalization rate, age, etc.?  What ranges do you typically stick to for each category?

2) Are there any property types you try to stay away from the best you can?

3) What other online resources do you gravitate to when it comes to property search besides loopnet, zillow, craigslist, etc.?

4)  Any hot markets currently that you're seeking to purchase in?  I live in Dallas and I know that it's a really hot market currently, but not much is available it seems...

5)  Is there a way to get into one of the developing apartment complexes as an investor?  I'm not accredited, so not sure if it'll work.

6) Would any be some kind to share their spreadsheets they use when it comes to property valuation and ROI analysis?

I definitely have a lot more questions, but I think if y'all can help me with the questions I've listed above, I'll have a good beginners understanding.  I appreciate the help in advance!

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  • Real Estate Investor · Wadsworth, OH · Member since 2015 · 36 posts · 14 votes
    9y

    Anthony,

    Shoot me an e-mail or message me  and I'd be happy to send you some spreadsheets that I use

  • Investor · Saint Joseph, MI · Member since 2015 · 93 posts · 50 votes
    9y

    hey @Anthony T. great questions and congrats on starting in REI at a young age. That will pay off bigtime down the road! For your questions, I am by no means an expert but I do own quite a bit of property. A couple thoughts: 1) that depends on whether you want cash flow or appreciation, I am investing for only cash flow right now so I can create a backup high source of passive income. I may speculate later in my REI career, but right now I go for at least a 13 CAP rate, will be higher on multi-family, but tough to get too much higher on Singles. 2) If the numbers work, I'll go for singles up to as many units as I can. 3) I prefer on the ground experience in the city I invest in 4) I'm only really in 1 market, so don't have much on that one 5) not sure if you have to be accredited, typically yes on syndication 6) I follow Grant Cardone who owns 350 mil in multi-family, and he says he does all his deals with a notebook, I typically just map it out with a pen and paper and keep it simple. Good luck with your investing!!

  • Allen, TX · Member since 2016 · 12 posts · 6 votes
    9y

    @Mark Kuster Send you a connection request!  

    @Jack Gibson  Thanks for sharing with me!  Read up on your profile on your monthly passive income  goal.  Hope you can achieve it soon!

  • Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
    9y

    Anthony,
    I'd go read some good books on MF investing, listen to MF podcasts, etc till you can't stand it anymore and stay in the apt forums.  Then, I'd check out some local MF meetup groups and start meeting local folks who are doing deals and see what they are doing, invite several out to coffee / lunch and get your feet wet in what's happening locally.  Assess what you bring to the table and think more about how I can leverage others (money, people, talents) to accelerate your growth.  Also, assess what you bring to the table.  Ideally, you want to complement your partners and vice versa.  I'm not a big advocate of DIY learning but DIWO (Do it With Others) learning when it comes to thinking big and finding experts to ramp you quicker (think mentors, coaches, partners).  

    If you happen to have cash and are accredited, you can even short circuit it and invest w/experts in syndication.  Here you leverage experts that already know what markets to be in, where the best deals are, structure the best deals and have an experienced team....ride it to profits if you don't have time or the inclination to learn at a deep level.   

  • Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    9y
    Let's chat Anthony T.
  • Allen, TX · Member since 2016 · 12 posts · 6 votes
    9y

    Sent a connection request @Lane Kawaoka!

  • Buy-and-Hold Rental Investor · Santa Fe, NM · Member since 2015 · 438 posts · 352 votes
    9y

    It has gotten so much easier to become an informed investor over the years, but it still takes time. Read, read, read. So many great apartment books on Amazon. Watch Youtube videos. Attend REIA meetings. Build your network. Most importantly: STICK TO IT.

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