Need professional advise in buying my first multi-Family

Cleveland, Ohio
General Real Estate Investing
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Need professional advise in buying my first multi-Family

Michael Jimenez
Member since 2022 · 12 posts · 7 votes

Good afternoon!

This is my first post ever and I will be probably throwing in bit of information as I got a few options to go through and would like to reach out to you guys about your options and advise as I start my journey as a Real estate investor! I would also like to build a team and or build connections as I will be an out of state investor. 

About me -

I am currently in the Army national guard currently deployed in the Middle East. I live in Massachusetts and plan on staying there for now once I'm back home. I do have a POA ( Power of Attorney) for anything that needs to be taking care of like appointments, walk thru, and closing deals.

The goal is to start finding deals and sending offers for multi- families in December 2022. I have multiple ways to go about it but wanted to hear from others what would be a good way to tackle my first deal! In December I'll roughly have 20% down for anything under 120k, but I also have FHA and VA available!

What are your thought? Also would be get if you have recommendation on PMs , contractors and agents! I’m ready to network! I’m ready to get my feet wet! 


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Ian Hogan
Real Estate Agent · Boston, MA · Member since 2019 · 62 posts · 85 votes
4y

In terms of your timeline, December and the winter in general can be an interesting time to start the search. Usually volume is lower but so are buyers, especially on snowy days or non ideal weather. So it can be great for determined buyers. That being said, the last year has been pretty strange with high buyer activity, with some open houses with a line down the road.

You'll probably want to determine your strategy in terms of the scale of turn-key to full gut rehabs. That may determine where you want to invest as well as what loan vehicle. Saying this since many minor things can possibly fail an FHA and VA loan but be saved by a smaller 203k (renovation FHA loan). I'm a fan of the 203k loan.

If your targeting MA (or not but want to talk with other investors either way), depending on your availability and when you come back to the states we have meetups for Massachusetts in person and virtually still for likeminded investors to meet other investors.

Thank you for your service and stay safe out there.

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  • Scott TrenchPro Member
    Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
    4y

    Welcome to BP and excited that another serviceman is getting into investing. Are you planning to invest in Massachussetts where you live, or in Cleveland as you tagged in this post? 

    Either way, I think that an easy first step is to talk to an agent (or better yet, several agents) in your target market. These folks will be eager to represent you and should be able to provide references to contractors and PMs. They should also send you recently SOLD comps (please don't have them send you active listing first) that will ground you in what is actually transacting in recent times in your local market. 

    As a pro member, you can analyze these real deals in the calculators to determine if you would have bought them, using conservative assumptions. After a few dozen reps, you will become comfortable analyzing those properties. Then, it's all about building trust with your PM and contractor choices - make sure to develop a process to interview them, check references with other investors (trust, but verify any referrals from your agent). 

    The best way to get started, in my biased opinion, would be to click the "Find an Agent" button at the top of the screen and interview a few of the folks we match you with in the results! 

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    2Reply
  • Ian Hogan
    Real Estate Agent · Boston, MA · Member since 2019 · 62 posts · 85 votes
    4y

    In terms of your timeline, December and the winter in general can be an interesting time to start the search. Usually volume is lower but so are buyers, especially on snowy days or non ideal weather. So it can be great for determined buyers. That being said, the last year has been pretty strange with high buyer activity, with some open houses with a line down the road.

    You'll probably want to determine your strategy in terms of the scale of turn-key to full gut rehabs. That may determine where you want to invest as well as what loan vehicle. Saying this since many minor things can possibly fail an FHA and VA loan but be saved by a smaller 203k (renovation FHA loan). I'm a fan of the 203k loan.

    If your targeting MA (or not but want to talk with other investors either way), depending on your availability and when you come back to the states we have meetups for Massachusetts in person and virtually still for likeminded investors to meet other investors.

    Thank you for your service and stay safe out there.

    4Reply
  • Michael Jimenez
    OP
    Member since 2022 · 12 posts · 7 votes
    4y
    Quote from @Scott Trench:

    Welcome to BP and excited that another serviceman is getting into investing. Are you planning to invest in Massachussetts where you live, or in Cleveland as you tagged in this post? 

    Either way, I think that an easy first step is to talk to an agent (or better yet, several agents) in your target market. These folks will be eager to represent you and should be able to provide references to contractors and PMs. They should also send you recently SOLD comps (please don't have them send you active listing first) that will ground you in what is actually transacting in recent times in your local market. 

    As a pro member, you can analyze these real deals in the calculators to determine if you would have bought them, using conservative assumptions. After a few dozen reps, you will become comfortable analyzing those properties. Then, it's all about building trust with your PM and contractor choices - make sure to develop a process to interview them, check references with other investors (trust, but verify any referrals from your agent). 

    The best way to get started, in my biased opinion, would be to click the "Find an Agent" button at the top of the screen and interview a few of the folks we match you with in the results! 


    Thank you SCOTT, 

    I appreciate the information and loved when you said “trust but verify” that’s been a big thing where I’m at right for the past week!

    1Reply
  • Michael Jimenez
    OP
    Member since 2022 · 12 posts · 7 votes
    4y
    Quote from @Ian Hogan:

    In terms of your timeline, December and the winter in general can be an interesting time to start the search. Usually volume is lower but so are buyers, especially on snowy days or non ideal weather. So it can be great for determined buyers. That being said, the last year has been pretty strange with high buyer activity, with some open houses with a line down the road.

    You'll probably want to determine your strategy in terms of the scale of turn-key to full gut rehabs. That may determine where you want to invest as well as what loan vehicle. Saying this since many minor things can possibly fail an FHA and VA loan but be saved by a smaller 203k (renovation FHA loan). I'm a fan of the 203k loan.

    If your targeting MA (or not but want to talk with other investors either way), depending on your availability and when you come back to the states we have meetups for Massachusetts in person and virtually still for likeminded investors to meet other investors.

    Thank you for your service and stay safe out there.

    Thank you IAN,

    I do eventually want to invest in Massachusetts I was thinking of the Springfield, Ma area not sure yet. As for strategy my first investment, I would love for it to be turnkey but I also understand if theirs a deal that makes sense with FHA/203k loan I’m all for it! I’m not afraid to go to work!!  
    0Reply
  • Shane Kelly
    Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
    4y

    Cleveland's multifamily market is saturated and/or overpriced right now in my opinion. I've delved into this on other forums, so I won't harp on it here, but I think a SFR would be better fitting at that price point. It does also depend on your level of rehab, where you're sourcing the deal, etc.

    1Reply
  • Michael Jimenez
    OP
    Member since 2022 · 12 posts · 7 votes
    4y
    Quote from @Shane Kelly:

    Cleveland's multifamily market is saturated and/or overpriced right now in my opinion. I've delved into this on other forums, so I won't harp on it here, but I think a SFR would be better fitting at that price point. It does also depend on your level of rehab, where you're sourcing the deal, etc.


     Thank you! I’ll definitely take that into conversation and look into it further

    0Reply
  • Jack KrusinskiBusiness Member
    Realtor · Cleveland/Akron OH · Member since 2019 · 141 posts · 91 votes
    4y

    Hi Michael,

    If you are planning on investing in the Cleveland area I'm happy to help build out your team. With $120,000 finding a good multi-family property that cash flows shouldn’t be too big of an issue. But finding a deal that is in the right neighbor so your tenant turnover is not too high will be critical.

    [email protected]216-789-6736
    0Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    4y

    When you say multifamily, are you 1-4 units or something bigger?

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    4y
    Quote from @Jack Krusinski:

    Hi Michael,

    If you are planning on investing in the Cleveland area I'm happy to help build out your team. With $120,000 finding a good multi-family property that cash flows shouldn’t be too big of an issue. But finding a deal that is in the right neighbor so your tenant turnover is not too high will be critical.


     For assistance on assessing the various neighborhoods and their level of investment risk I suggest reading The Ultimate Guide to Grading Cleveland Neighborhoods. Tons of money can be made in the Cleveland market, but it's a difficult market to navigate without proper due diligence.

    0Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    4y

    Hi Michael, I would love to connect and share my experience in buying multi family in Cleveland. Let me know if you have some time on your calendar and we can share ideas. 

    0Reply
  • Jerome C Brown
    Member since 2021 · 77 posts · 34 votes
    4y

    i have a multifamily property in cleveland ohio

    1Reply
  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
    4y
    Welcome to BP and congrats on looking for your first deal! When looking for a PM company I am happy to recommend some solid companies. Start your search with NARPM. Happy investing!
    [email protected]
    RentWerx Property Management4.73296 Reviews
    WebsiteView Page
    0Reply
  • Nancy Francois
    Member since 2022 · 1 post · 0 votes
    4y
    Quote from @Jerome C Brown:

    i have a multifamily property in cleveland ohio


     Who did you use to inspect your property? I need a referral 

    0Reply
  • Nicholas Salman
    Lender · OH · Member since 2022 · 113 posts · 77 votes
    3y

    Michael, first off, thank you for the sacrifice of being over there.  I am a full time fireman and a loan officer as well.  In my opinion it depends on alot of factors.  I would love to connect and learn more so I can figure out how to better help you in getting started on your journey!

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Michael Jimenez:

    Good afternoon!

    This is my first post ever and I will be probably throwing in bit of information as I got a few options to go through and would like to reach out to you guys about your options and advise as I start my journey as a Real estate investor! I would also like to build a team and or build connections as I will be an out of state investor. 

    About me -

    I am currently in the Army national guard currently deployed in the Middle East. I live in Massachusetts and plan on staying there for now once I'm back home. I do have a POA ( Power of Attorney) for anything that needs to be taking care of like appointments, walk thru, and closing deals.

    The goal is to start finding deals and sending offers for multi- families in December 2022. I have multiple ways to go about it but wanted to hear from others what would be a good way to tackle my first deal! In December I'll roughly have 20% down for anything under 120k, but I also have FHA and VA available!

    What are your thought? Also would be get if you have recommendation on PMs , contractors and agents! I’m ready to network! I’m ready to get my feet wet! 

    Hi Michael, the right step for you would be to first make a good team that will help you out in your real estate journey. I have a list of PM's, contractors and lenders that several of my investors worked with when acquiring properties. I personally have 8+ units here in Cleveland and my team primarily helped me to make the managing of these properties easier. If you need help finding a good team and a good neighborhood to start on, let's connect and discuss how I can help you out.
    0Reply
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