I'm looking to make the jump from SFHs to Multifams. I'm hoping that some of you who have made that jump might have some referrals for good brokers in the Midwest that I can start connecting with that you've worked with and have had good experiences with. I'm mostly looking at the 5-25 units range.
Also, just a general thank you to the Bigger Pockets community. While I've learned a lot about real estate from my own trials and errors over the years, I've learned almost just as much here on Bigger Pockets.
@Tiffany Bishop Sent you a PM with a commercial real estate broker in Indianapolis who works with a lot of MF homes.
I have a contact in KC w/ some off market stuff.... message me.
Hey, @Tiffany Bishop : It might help if you identified a few markets that you are specifically interested in. What has caught your eye?
@Tiffany Bishop , yes, Indianapolis is a great place to invest and it's in my own back yard. I also work in the industry, managing hundreds of homes for over 100 investors all over the world with different strategies, experiences, and sophistication. It really is a sweet spot for me. I've done several joint ventures, flips, and own rentals.
Carmel is too expensive to find decent cash-flow, but if you are looking for IRR over a 5 year plan, you can find some opportunities. Avon and Brownsburg are my 2 favorite suburbs as they are in high development, but still affordable.
@James Kojo I think I have a problem narrowing down markets. Currently, I have invested in state (in Utah) and out of state (in NC) for SFHs. As for multis, like I said, I'm looking in the Midwest. Indiana is where I'm originally from and my sister still lives there so I am always looking at possibilities there. I've also been researching a couple of markets in Ohio, specifically Cleveland and Dayton. I've also looked into some of the cities that are always being talked about here on Bigger Pockets (Kansas City, Memphis, etc.). But in reality, at this point I'm open to anything. Is that a bad thing?
Hey @Tiffany Bishop I would set up some key word alerts for specific cities your are considering investing in. Then reach out to some BP member from each city and start really narrowing it down. If you are interested in learning about the Cleveland market @James Wise is the man to follow. I have also heard great things about Indy. I have a relative who is an agent down. I would be happy to connect the two of you if you decide to look more into that city.
Happy House Hunting,
@Tiffany Bishop : It's definitely not a bad thing to have multiple target markets, however you have to (or should be!) investing a significant amount of work into each market.
MFR is a completely different beast than SFR, unless you're talking about duplex to fourplex. You mentioned 5-25 units, which falls into commercial class residential, so you're dealing with commercial RE brokers.
Unfortunately, on the commercial side it's not as easy as calling someone up and saying "Hey! I have a million dollars that I want to spend. please send me your good deals!" It's a lot of "inside baseball" if you've heard of the term. Basically, commercial brokers like to work with people they know have a track record of closing deals with minimal fuss.
So, even if you have multiple target markets, you'll want to spend some time in each market learning how to "crack" it. So you may want to chose 1 to start.
Hope that helps!
I personally like SFH, but I think if you go into multi unit, hitting the 20 unit market is a good place to be.
They are too big for the little investor and too small for the big investor. I would not get a 5 or 7 unit, those have too
high of expenses for the number of units.
If you want to check out Cleveland, let me know. I know the areas to go and not to go.
good luck with whatever ya do!