How to transition from VR/STR to Multi-family

Question

So. Things are good. With 5 successful VRs and a SF LTR under our (@Avery Carl) belts in less than 2 years; we're thinking its time to make a move into multi-family. Living in the Nashville area I'm not sure where to start. If anyone has made this move I'd love to hear your story. If you know an awesome commercial agent in the area I'd love to talk to them!

Regardless of your market I'd love to hear your story. I'm a phone call person so PM me if you'll share your story!

P.S. I'm looking anywhere within 45 minutes of Nashville (preferably North) but not in Nashville.

White House, Springfield, Gallatin, Franklin, KY, Bowling Green, Portland, Clarksville

I'm thinking 5-25 units but that could change as I do more research

I've gotten this far by asking dumb questions on BP so I figure it's worth a shot.

Teach me oh wise ones!

Bryce Stclair · Answer

I feel like all this can be done in a group chat behind the scenes of BP lol @Justin Cory @Lucas Carl @Julie McCoy

Justin Cory · Answer

@Lucas Carl There is a lot in Clarksville right next door to where we have Bryce's quad being built on Big Sky Dr. (Across from Tennova) that we can build 20 units (5 quads). Price, without any seller-paid closing costs, would be approximately $1,800,750 with rents at $895-$925. Let me know if I can get you any more info.

Julie McCoy · Answer

@Lucas Carl I'd think of it more like VRs are just a different entity - yeah, more day to day work but also DIFFERENT work than a LTR.  However, you do already have a SF LTR so even my own argument doesn't hold up, I suppose.  LOL

I've found commercial loans to be curiously opaque - maybe I'm looking in the wrong places - so I'll be interested in what you discover on that front.

(Isn't @Bryce Stclair's 4plex close to/more than 1%?)

Luke Carl · Answer

@Paul Sandhu I tried that. No one wrote me back over there either. Thought maybe I'd get a bite over here on the page I frequent. Guess not lol

Luke Carl · Answer

@Julie McCoy I guess the thought process there is 2-4 is not much different than what I'm already doing. If one were to want to get their feet yet on managing 2-4 units that I would understand. I'm thinking one vacation rental has to be as much work if not more than a 3 unit long term rental.

I'd like to get my feet wet with commercial financing and working with a small bank and several tenants and all that jazz. Under 5 is just a regular old loan I've done that several times I want to try something new.

But, if you find me a 4 unit in this area that does 1% or better I'll buy it!

When in the hell are they going to put spell check on here?

Paul Sandhu · Answer

You might want to post the original message in the "Multi Family and Apartments" forum on this website.  This is the "Short Term and Vacation Rental" forum.  Please stick to the subject matter, lol.

Julie McCoy · Answer

Curious about the decision to go straight for 5-25 units vs. starting with 2-4 units - seems like a smaller one might be good "training wheels"?  Of course, if the right deal comes along, go for it!  (I want to phase into MFR too, I'm just not quite so far along as you are)