Multi family apartment building of 50-100 units

Multi-Family and Apartment Investing
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Multi family apartment building of 50-100 units

Jeff Fortuna
Longboat key florida · Member since 2011 · 22 posts · 13 votes

I am planning to buy a multifamily building/complex of around 100 units so far I have 47 Single family homes in west Michigan and have a good experience of managing them. I have been selling a few a year and putting the proceeds into growth mutual funds. Any advice on BEST CITIES for buying multifamily building for buy and hold purpose? Should I continue saving in the mutual funds?

I have been thinking north Carolina - Charlotte area. But am looking for advice on where to buy them and how to finance the purchase.  I have the 25 percent down payment and 25 yrs experience managing tenants. I have been waiting for a downturn to get better prices but am looking for advice.   Thanks. !

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Laura Shinkle
Realtor · Charlotte, NC · Member since 2017 · 359 posts · 293 votes
7y

Hi @Jeff Fortuna, congrats on building your portfolio thus far! That is no small feat. As far as markets, Charlotte is pretty hot, growing exponentially with 97 people moving here every day. Our economy is very diverse, not relying on one industry and lots of large companies opening offices here. That being said, the market for 50-100 unit apartment complexes is very tight with not much inventory. If you're interested, I can put you in touch with an agent who does those type of deals since my specialty is more SFH and 1-4 unit buildings. Let me know what you think or if you're interested. Just my two cents!

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  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    7y

    Have you looked at doing a full sale of your current portfolio? 

    Charlotte is great but in my opinion is getting overbuilt. North Carolina is a great state with strong growth, perhaps also look at some other markets there.

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  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Jeff Fortuna

    Congrats on your successes with SFH investing.

    In terms of financing, your should talk to a few commercial lenders to get a sense of what to expect. IN general MFH investing is very different from SFH. There're some lenders here on BP, so just search for them.

    In terms of the market, Charlotte is a great place to be but overheated. As for looking at another market, a lot depends on your criteria: things like secondary vs tertirary, area type (A, B, C, or D), price range per door. Again, you can search for the same question (that's being asked many times here on BP) and just go through the response to find what works for you. 

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  • Laura Shinkle
    Realtor · Charlotte, NC · Member since 2017 · 359 posts · 293 votes
    7y

    Hi @Jeff Fortuna, congrats on building your portfolio thus far! That is no small feat. As far as markets, Charlotte is pretty hot, growing exponentially with 97 people moving here every day. Our economy is very diverse, not relying on one industry and lots of large companies opening offices here. That being said, the market for 50-100 unit apartment complexes is very tight with not much inventory. If you're interested, I can put you in touch with an agent who does those type of deals since my specialty is more SFH and 1-4 unit buildings. Let me know what you think or if you're interested. Just my two cents!

    1Reply
  • Ben D.
    CA · Member since 2013 · 64 posts · 58 votes
    7y

    Hi @Jeff Fortuna - I'm also an investor in SFH in the Grand Rapids area. How did you finance the 47 SFH? I know you can use traditional 30 year fixed mortgages for the first 10, but I'm curious how you handled the financing after that. Also, what's the reason that you're not looking in West Michigan for the 50 - 100 unit property? Thanks.

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  • Dave Thomson
    Rental Property Investor · Erie, CO · Member since 2017 · 34 posts · 13 votes
    7y

    Hi @Jeff Fortuna! I know of a few investors (myself included) that would be interested in purchasing your properties in West Michigan if you're looking for a buyer. Please message me or let me know!

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  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    7y

    Sounds like a solid plan!  I don't have any experience in that market but I'd suggest digging deep into the market metrics.  A great resource for learning which market data points to look at is Neil Bawa's podcast.  I would also begin the conversations with lenders to ensure you will qualify, on an experience level, for a 100 unit bldg. 

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  • Randy CharboneauBusiness Member
    Residential Real Estate Broker · Grandville, MI · Member since 2016 · 109 posts · 78 votes
    7y

    If you're looking a little closer to home, Glenside Estates II is available in Muskegon.   Let me know if I can help further.  Glenside Estates II data info

    [email protected]616-262-0001
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  • Account Closed
    Specialist · San Antonio, TX · Member since 2012 · 865 posts · 351 votes
    7y

    I'm interested in this thread whereas l have a portfolio similar in SFH, but probably less liquid than you. Been wanting to scale up as well, but don't want to syndicate.

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  • Bernard H.
    NJ · Member since 2016 · 27 posts · 0 votes
    7y

    @Jeff Fortuna

    Im also looking in that same market maybe we can help each other.

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