Small multifamily investing
Joppa, MD · Member since 2017 · 1 post · 5 votes
Small multifamily investing
Most Popular Reply
J CastroBusiness Member
Lender · Florida · Member since 2025 · 661 posts · 239 votesHi @Matt Koehler, welcome to BP!
That’s a strong position to start from — already having an operating business (especially plumbing/HVAC) puts you ahead of most new investors because you understand construction costs, subs, and real-world rehab risk.
From the lending side, that kind of background is actually very attractive. Cash-flow businesses plus hands-on trade experience often translate well into:
- DSCR rental financing
- Bridge/renovation loans
- Light value-add multifamily deals
- Even portfolio scaling once you get 1–2 properties stabilized
If you’re putting the pieces together now, the biggest early win is aligning your financing strategy with your execution speed — that’s usually where new investors either slow down or overpay for capital.
If you want, I’d be happy to connect and take a look at your plan and see how we could potentially support you on the lending side or help you structure your first few deals in a way that sets you up to scale faster and recycle capital efficiently.
Either way, sounds like you’re building this the right way by starting with relationships first. Keep that momentum going.
7 Replies
- 4moJ CastroBusiness MemberLender · Florida · Member since 2025 · 661 posts · 239 votes
Hi @Matt Koehler, welcome to BP!
That’s a strong position to start from — already having an operating business (especially plumbing/HVAC) puts you ahead of most new investors because you understand construction costs, subs, and real-world rehab risk.From the lending side, that kind of background is actually very attractive. Cash-flow businesses plus hands-on trade experience often translate well into:
- DSCR rental financing
- Bridge/renovation loans
- Light value-add multifamily deals
- Even portfolio scaling once you get 1–2 properties stabilized
If you’re putting the pieces together now, the biggest early win is aligning your financing strategy with your execution speed — that’s usually where new investors either slow down or overpay for capital.
If you want, I’d be happy to connect and take a look at your plan and see how we could potentially support you on the lending side or help you structure your first few deals in a way that sets you up to scale faster and recycle capital efficiently.
Either way, sounds like you’re building this the right way by starting with relationships first. Keep that momentum going.
- 3moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 965 posts · 637 votes
Hello and welcome @Matt Koehler
Owning a plumbing and HVAC business gives you a skill set that many real estate investors would love to have. Having experience with two of the most expensive systems in a property can be a real advantage when evaluating deals and managing repairs.
One thing I've learned over the years as a Realtor, property manager, and investor is that building relationships is just as important as finding properties. The right lenders, contractors, agents, and investors can make a tremendous difference as you grow. You're taking a thoughtful approach by focusing on a strong foundation first. Wishing you the best.
Spark Rental Co-Investing Club576 Reviews - 3moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 965 posts · 637 votes
Welcome @Matt Koehler
You're already bringing valuable experience to the table. Having a plumbing and HVAC background gives you insight into properties that many investors don't have.Building relationships and learning from others is a great place to start. Wishing you the best as you put the remaining pieces in place and grow your investing business.
Spark Rental Co-Investing Club576 Reviews - 4dEric FernwoodBusiness MemberRealtor · Las Vegas, NV · Member since 2014 · 991 posts · 1k+ votes
Hello Matt,
Where and what types of property to buy are determined by your long-term financial goals, not the opinion of others. If your goal is long-term financial independence, you are investing today to create a 20- to 40-year monthly paycheck that increases faster than inflation.
Financial Independence
Financial independence is not a one-time event or a fixed dollar amount. It requires a rental income that maintains your current lifestyle throughout your lifetime. To achieve this, your rental income must meet two conditions.
Rents must outpace inflation: Inflation increases the cost of everything, so your rental income must increase faster than inflation. Rent growth isn’t a property feature—it’s determined by the city where you invest. Think of the city as a harbor and rents as boats floating in the harbor. When the tide comes in (population growth increases housing demand), all boats rise (rents increase). When the population is declining, rents stagnate or fall.
Income must last your lifetime: This requires your tenants to remain employed. However, most companies only exist for just 10 to 18 years. When these jobs end, your rental income depends on new companies creating replacement jobs.
Where (city) you invest is the most important investment decision if your goal is long-term financial independence.
Properties Do Not Pay Rent
Your financial success depends on the tenant who occupies your property, not the property itself. I recommend starting by identifying a tenant segment with a high concentration of reliable tenants. A reliable tenant stays for many years and pays rent on schedule. Ask multiple property managers the following question to identify what and where this segment currently rents:
“What properties would you buy if you wanted to attract tenants who stay many years and pay the rent on schedule?”
When I started my investor services business in 2005, I asked about 15 property managers this question. Thirteen of the 15 described the same properties.
Local Investment Team
Whether you invest in your city or across the country, work with an experienced local investment team. Books, seminars, and podcasts provide valuable general knowledge. However, you will buy a specific property, and you will need a team of experts and resources. Your best source for what you need is a local investment team. They cost no more than any other realtor, and they can provide a free master class on real-world investing.
Summary
Matt, start with your financial goal and work backward. Every location is different. Do your own research. Select a city and properties that will enable you to reach your financial goals.
FERNWOOD Team, KW VIP Realty520 Reviews - 4dTyler MccleanPro MemberInvestor · Nassau County, NY · Member since 2022 · 71 posts · 19 votesHey Matt would be happy to connect!
- 3dNicholas FloydBusiness MemberNY · Member since 2026 · 166 posts · 56 votes
Matt, you’re actually in a strong position because you already have an operating plumbing/HVAC business and understand the construction side. As you start building out the real estate piece, I’d focus on getting the entity, funding strategy, and reserves lined up before the first acquisition.
I work with business owners and investors on business credit, lines of credit, business loans, SBA options, and revenue-based funding. Depending on your personal credit profile and business revenue, there may be ways to create additional capital without putting everything into one deal. The biggest thing is making sure the numbers make sense and only leveraging what you can comfortably afford.
- Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 311 posts · 115 votes16h
Quote from @Matt Koehler:
Hi ALL, I am moving towards starting my real estate investment business. I currently own a plumbing and HVAC service business. I am looking for any insight and perhaps even looking for anyone who wants to partner, lenders, etc. I have a business plan in place and now it's just a matter of putting the rest of the pieces in order. Hoping to build on a strong foundation, hence posting here to make acquaintances.
I am in the Baltimore MD area.@Matt Koehler, you’re coming into this with a really useful background. I’ve worked with investors who already owned another business before getting into real estate, and one thing that helped was treating the real estate side like its own business from the beginning.
Having the right entity, clear agreements if you bring in partners, good records, and a plan for how money moves between the businesses can save a lot of problems later. Your plumbing and HVAC experience is a huge advantage on the property side, but the business structure matters just as much once you start buying and working with other people.
I’m in the Baltimore area too and would be glad to stay connected. I always enjoy meeting local investors who are trying to build things the right way from the start.
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