What does a headache multi family property look like?

Question

I use PropStream to pull lists of multi family properties which I reach out to via handwritten letter, phone calls, and texts. I want to niche down on the properties I target as my plan is to personalize and build relationships rather than spam and treat it as a pure numbers game.

I am currently searching for properties that have 2-100 units, out of state owners, 5+ years of ownership, and owners that have 5+ properties.

I saw recently on the BP forums that owners will NOT sell properties that have little to no vacancies, do you agree with that?

What other criteria should I be looking for that may be an indicator of a head ache property in another investors portfolio?

I really appreciate your input!

Felicia Feliciano · Answer

All multis are headaches.  To make em work you really need a lot of units.  That econmomy of Scale thing.

You know why so many are in dis-repair.  That juicy cash flow you were so excited about at the get go-   Tenats happen.   There goes the cash flow mabel.  We either go on that Cruise or fix our 4 Plex.  Mabel says Punta Gorda here we come..........lol.

Hayden Wright · Answer

@Richard J Whitmore III thank you for your response Richard. I am looking for a deal now. Congrats on the 17 units!

Richard J Whitmore III · Answer

Have you already identified property or are you ready but haven't found your deal yet. I think that mailers is a long term, fishing numbers game. I have found 17 doors, the owners live an hour away and it is a headache for them. Working out details as the buyer on our land fell through. Have some good things going for us, 10% seller contribution. Lender is in agreement, Price per door is good, there is an upside with higher occupancy. Biggest undertaking for me so far, although i have done a 22 unit 10 years ago with my father.

Hayden Wright · Answer

@Richard J Whitmore III I’m not a realtor, but I am interested in multi family because it is more scalable.

Richard J Whitmore III · Answer

Thank you Hayden Wright,  it is exciting and difficult to negotiate contracts with all the moving parts and work the day job lol. Im also from Houston. Are you a Realtor or what got you interested in multi family? I'm new to the forum and what is and isn't allowed.  Where do people go on here to go over numbers? Or talk about specific deals, joint ventures and other opportunities?

Do you already have rental properties?

What does a headache multi family property look like?

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