Hello all. I'm new to this forum and REI. I'd like to get into multi-family units. I'm currently reading up on as much as possible and still a ways from making my first offer, but want to get motivated by your success. I've seen all the commercials and promises of riches, but what's reality? Who has made good money? Who hasn't? What have been the timeframes to success? And what good resources (besides BP) are out there? Lots of questions I know but am looking to soak up any advice. TIA.
Hey Rick! My suggestion to you is to download and listen to every podcast......EVERY...SINGLE....ONE!!!! There are some topics you may not be that interested in but there will be valuable information buried in there that you can use. Start at #1 and get caught up. You will be more than motivated!! Then every week when the next one comes out you can download and listen to it for some fresh motivation.
Good luck on your journey and stick around for awhile!
I think multi-family can be a difficult way to start. On paper it seems so attractive - all your units in one place, one roof, one foundation, one stop for maintenance and inspections, etc - but in reality, you are instantly taking on the challenge of dealing with many tenants, and dealing with the tenant interactions with each other. Couple that with the limited market for resale, and I think it's something to really think through. You may consider starting with a single family home or two.
Your key to making money is cash flow or a strongly appreciating property, or both. If you have a property that doesn't appreciate much, but has a strong cash flow to expense ratio, you can do well. If you have a property that breaks even, but is rapidly appreciating in value, you can ultimately do well. If you have both, you are really loving life! If you have neither, you are going to be in trouble!
You have to decide to some extent what your goals are other than "making a boatload of money". If you want income now, then you need to focus on properties that don't cost you much to own but generate a high level of rent, which opens you up to certain areas that may otherwise not be worth looking at. If you want growth of principal, you should select properties that are in hot neighborhoods, or neighborhoods that will be hot.
BP is full of useful resources such as forums and blogs. Welcome to the Bigger Pockets community-be sure to check out all the awesome BP blogs under “Learn.”
there is a whole forum on biggerpockerts devoted to "real estate success stories". Look it up, I'm sure you'll find plenty of inspiration
Thank you all for the replies. The more I browse this sight the more I realize it's a goldmine. Looking forward to contributing.
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