Palm Beach County Multifamily

16 Replies

South Florida / Palm Beach County  Multifamily Investors - What are you buying?, Where are you buying? What kind of returns are you getting? What are you seeing in the market? Or are you buying out of state or sitting on the sidelines until things cool off?

I have about $100,000 to invest and I've been searching for a small to mid sized value add multifamily investment (4 - 10 units) but it seems like the deals are very hard to come by. There's a few properties for sale in the Lake Worth Area that have OK returns but I'm hesitant to invest there...


Has anyone landed a deal locally lately?

@Jim Hiler This is a great post. I am looking for the Multifamily properties as well. Everything that I see sells very fast and at full ask. I'm looking in Coral Springs, Lake Worth and areas a bit south. I'll keep you posted if I see anything. 

I'm also looking anywhere in Palm Beach County from Boca up to Jupiter but it's hard to find anything that makes sense. Will be starting some of my own marketing within the next few months to try and source some off-market deals. It's definitely more of a flippers market right now. Cash flow seems very tough to find for both SFH's and MFR's.

Hello everyone. I am a newbie (pre-investor) looking to purchase my first multi family in the tri-county area. Can anyone explain to me what specific numbers you analyze or what returns you look for in order to determine if a multi-family deal is a good purchase in our hot market?

@Monique Webb , first, welcome to RE investing.

Second, there is A LOT to learn. Are you asking about residential multi (up to 4 units) or commercial (5 or more units)? Figuring out which one of those classes you are targeting will determine a lot in regards to financing options, down payments, etc. 

As for analyzing numbers, you're going to want to familiarize yourself with CoC (cash on cash), CAP rate and NOI (Net Operating Income).

As for what return to look for, that depends on the market you're looking to invest in. Also, what you want as a return may not be what another investor wants so to answer that question, you have to ask yourself, "how much money each month will be enough compensation for dealing with each tenant?" Is it $100 per month per tenant? Is it $300? $500?

@Russell Gronsky - Thank you so much for your reply. 
Currently I am looking at a small multi (up to 4 units) and was hoping to acquire a loan with a low down payment.
I have familiarized myself with the numbers you mentioned (COC, NOI and CAP), now I just have to figure out what I think would be good benchmarks for me. 

Do you have any suggestions on where I should look for a low down, possibly FHA loan for a small multi?

Thanks again!



Originally posted by @Russell Gronsky:

@Monique Webb, first, welcome to RE investing.

Second, there is A LOT to learn. Are you asking about residential multi (up to 4 units) or commercial (5 or more units)? Figuring out which one of those classes you are targeting will determine a lot in regards to financing options, down payments, etc. 

As for analyzing numbers, you're going to want to familiarize yourself with CoC (cash on cash), CAP rate and NOI (Net Operating Income).

As for what return to look for, that depends on the market you're looking to invest in. Also, what you want as a return may not be what another investor wants so to answer that question, you have to ask yourself, "how much money each month will be enough compensation for dealing with each tenant?" Is it $100 per month per tenant? Is it $300? $500?

I am looking into a 2 story duplex now in Lake Worth. 2/1 on top and bottom floor. There is a 550sqft garage behind it that is converted to a studio with a bathroom and kitchen.

Originally posted by @Tyler Lukey :

I am looking into a 2 story duplex now in Lake Worth. 2/1 on top and bottom floor. There is a 550sqft garage behind it that is converted to a studio with a bathroom and kitchen.

Yeah Lake Worth is predominantly where most of the MFR's are for sale.

I think I looked at that same deal although there are many which are similar.

Yes, I like the Lake Worth area too. I see it becoming more popular, in my opinion. I am 28 and into art, music and beer and find myself in Lake Wroth often for that. I live in West Palm at the moment and lived in Fort Lauderdale for 5 years.

Not too much that cash flows unless it needs lots of work.  I'm currently flipping and because I want it to need fix up helps.  Prices are really up there and I have been looking in Pt. St. Lucie for deals.  Buying for cash also thins out the herd.  Just my two cents.  

Monique, have you looked into Home Path properties.  Not sure if you are going to home hack with the multi's and if you are you get first crack at the property if you will live in one of the units.  You can get into home path for 3 percent down and 10 percent for investor after owner occupied buyers get first crack at it.  Good luck.

Hi Charlie. 

Thanks for that nugget! I have not heard of home path. The intention is to house hack but I am not afraid to get my hands dirty. I have lived in South Florida for quite a while (from Palm Beach Gardens, down to Homestead) so I know we have a hot market and creating opportunity is probably gonna be a better bet than banking on a turnkey deal to cashflow.

I will definitely be keeping my eye on Home Path because I am beyond ready to find, fix, and rent my first deal!. 

Thanks again.

Originally posted by @Charlie DiLisio :

Monique, have you looked into Home Path properties.  Not sure if you are going to home hack with the multi's and if you are you get first crack at the property if you will live in one of the units.  You can get into home path for 3 percent down and 10 percent for investor after owner occupied buyers get first crack at it.  Good luck.

Originally posted by @Brian Garrett :

I'm also looking anywhere in Palm Beach County from Boca up to Jupiter but it's hard to find anything that makes sense. Will be starting some of my own marketing within the next few months to try and source some off-market deals. It's definitely more of a flippers market right now. Cash flow seems very tough to find for both SFH's and MFR's.

Hey Brian, have you had any luck finding off market deals? 

Originally posted by @Allyssa Mccleery :
Originally posted by @Brian Garrett:

I'm also looking anywhere in Palm Beach County from Boca up to Jupiter but it's hard to find anything that makes sense. Will be starting some of my own marketing within the next few months to try and source some off-market deals. It's definitely more of a flippers market right now. Cash flow seems very tough to find for both SFH's and MFR's.

Hey Brian, have you had any luck finding off market deals? 

Still looking I'm getting sent stuff daily from wholesalers and realtors but nothing where the numbers work yet.

I'm finding MFR's that hit the 1% rule but they don't have a value-add element to force immediate appreciation.

Since I'm looking to BRRRR and not have my cash parked in a property those kind of deals don't work for me.

Everything I see is priced at full market value or just below so there's no room to increase value for higher ARV.

@Brian Garrett Understandable. It is tough to find something that works. I am getting ready to cold call property owners but am trying to do some more research on what to say first!

It is definitely getting hard to find any deals out there. We just helped our investor purchase a 33 unit deal for 3.3 million in the Lake Worth/Palm Springs area. Rents are $1300.  We manage about 500 units in PBC and most of our investors are looking to buy and rarely do we have someone that wants to sell. 

Has anyone else watching the PBC market noticed a spike in listings, price drops and re-listings all of sudden the past few days or is it just me? Any realtors out there know what the current average days on market was last month? Wondering if there are any subtle signs that the market may be cooling off.

What is everyone seeing out there?

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