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.
Does the law require an onsite manager for 5+ units? Not that I know of.
Who typically handles lawn maintenance? Owner for multifamily.
How are pre-purchase inspections handled and who performs them? You would need to arrange these.
@John Underwood Thank you!
In the Columbia area, you do not need an on-site manager but you do have to have a responsible party within an hour or so of the property. It is different in different towns but I seem to remember Cayce, for example, needing a contact person 75 miles or less from the property. I cannot find the statute now but I think Columbia is a shorter distance. Landlords cannot live in, say, New York without having someone here for tenants to contact if there are problems.
@Christopher Bunge That sounds like it be would be ok. I have all my rentals under PM at the moment and would do the same with a multi.