Transitioning from SFR Rentals to Multifamily - Things to Know
Hello BP!
I've been part of the investing and landlording world since 2014. I've learned a lot but of course there is always much to learn.
I own 7 SFR rentals and am looking to scale, so I'm entertaining the idea of making the jump into some multifamily investing.
My properties are in North and South Carolina, and in C+/B- and better areas. I'm looking to learn as much as I can about the differences between purchasing, owning, and managing multis and SFRs. I've started to compile a list of what I know and don't know so far. If anyone can offer suggestions, please chime in!
What I do know:
Look for properties with units separately metered for utilities.
Commercial financing applies to properties of more than 4 units. Financing approval is based upon the income of the property instead of being based on your personal income.
Review leases of any tenants already in place.
What I don't know:
Does the law require an onsite manager for 5+ units?
Who typically handles lawn maintenance?
How are pre-purchase inspections handled and who performs them?
I'm sure there's a lot more that I've left out. I'd love to hear what those of you experienced with multifamily have learned.
Thank you in advance.