Hi all, glad to finally join the ranks of this forum. I'm hoping to learn about multifamily properties. I'd love to create a safety net for my family by creating cash-flow outside of my day job. I've tried other entrepreneurial adventures but nothing in real estate yet. Just trying to learn all I can.
Any and all tips welcome as I feel like I just opened the door to a massive mansion of information with thousands of rooms to explore. Glad to be here.
Hello and welcome to this location Dylan! You picked a good type of real estate to be in. One of my favorites is being able to use a cap rate. There are many other things other than the cap rate that is being used. One of those things is the first impression, mostly Tenants. That is the building(s) and the landscaping. Check with local area property manager to get the pluses, minuses, and rental prices to see if they are in line with your requirements. It's location can be important, near a highway is the best.
The physical appearance of the common areas is important and have the property lighting for its residents. Who pays for all of the utilities and is that you or the tenant? Access is always an important factor too. Public and school-related that might be available and where are the bus stops? Make your offers by actuals and not pro formas.
Make regular unit inspections and let that be known up front when discussing your lease requirements. Do not say anything that might be Federally be looked as possible discretionary language. Decide if you will allow pets. What the price is not as important as positive cash flow. Can you add any value?
Is the local economy diverse and is the population growing as well as jobs? The more units, the better. Good luck to you!
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