All Forum Posts by: Amir Khan

@Hernan Gandarilla Jr Perhaps you can repost in Landlording & Rental Properties you'll get more responses. This thread is for commercial multifamily (5 units +)...

For residential multi family real estate (2-5 units), framework depends on exit strategy. So if it is simply keeping a cash flowing property long term:

1. Buy at lower price than what it is worth: I will try to buy the property below its expected value. Even a $5K below value can make a difference. 

2. Cashflow analysis: You can use the cash flow analysis that BiggerPocket provides. It is pretty standard. Just be aware, that a monthly positive cash flow of $200/month means nothing if you have to replace the $5K furnace.

3. Keep reserves: As listed above, your rental portfolio can easily become cash drain if you've not kept enough reserves. Always keep more than what you'll need.

4. Manage it well: If you don't have experience (or property is out of town/state), hire an experienced property manager. This will help you not worry about small issues (maintenance requests etc) and focus on your portfolio performance.

@Tony Allen don't get discouraged just because they are not priced well. Run your numbers on as many properties as possible. This will teach you a very valuable skill; assessing properties and knowing what kind of properties sell for how much (MD being a disclosure state). You will then know what is maximum you should pay for a certain property - if that is lower than the listed price, offer that price and try to negotiate. Only in very hot market do properties sell 100% at listing price. For example, I found this sold duplex: https://www.realtor.com/reales...

It was first listed on 11/2022 for $155K, but sold for $145K in 3/2023...

@Terima Nagatani it is true that you can deploy your cash to another market (other than WA state) where you will find duplex or triplex, which will cashflow. Just remember, even if you have a property that cashflows (with tenants in them), with a vacancy and repairs, couple of months of cash flow could be wiped out very quickly. I guess what I am saying is, all strategies work (buying properties with cashflow, value-add flips, buying for appreciation), there will always to something that can go wrong. You are on the right track of thinking to put as little cash down as possible and keeping as much reserve as possible...in my opinion, the key is what is your plan for the property and what is your exit strategy for the property?

I second Hunter Thompson's Book "Raising Capital for Real Estate"...

@Michael Hayes I don't have recommendation for a mastermind group. But I am putting together such a group that will meet via Zoom. And yes, it is open to experienced investors only, preferably investors in commercial real estate or moving into that area. DM me if interested..

@Tom Freestone I don't know what that is either. However, with some searching online, I found following outline you could use to create your own:

1. Set clear rules and expectations: Before guests arrive, make sure you have a clear set of rules and expectations that you communicate to them. This includes rules about check-in and check-out times, noise levels, and other house rules.
2. Establish a communication protocol: Make sure that guests have a way to contact you in case of any issues or questions. This can be done through a messaging platform like Airbnb or through a phone number that you provide.
3. Hire a cleaning service: Hire a cleaning service to clean the property after each guest leaves. This will ensure that the property is clean and ready for the next guest.
4. Check inventory regularly: Make sure that the property is fully stocked with essentials like toilet paper, towels, and other amenities. Check the inventory regularly and restock as needed.
5. Keep track of finances: Keep track of your finances, including rental income and expenses. Make sure that you are pricing your rental appropriately and that you are covering your expenses.
6. Be responsive and professional: Be responsive to guest inquiries and concerns. Respond in a timely and professional manner to ensure that guests have a positive experience.
7. Manage reviews: Encourage guests to leave reviews and respond to them in a professional and courteous manner. This will help build your reputation as a reliable and trustworthy host.

@Joel Florek what are going cap rates in this area?  Is this property in Michigan City, IN? What is your exit strategy on this property?

@Venslaus Arokiaraj Zane is correct, there is no minimum amount for commercial loan. However, some lenders have their requirements and may not loan on commercial loans below a certain amount. Did you underwrite the 6 plex? How are your numbers? What do you plan to do with the property? What is your exit strategy? If you are familiar with the underwriting process, then the lender would like to see these. This will tell them that you know what you are doing. In past, I've found commercial multifamily lenders by searching on google within the area where the property was located. Hope that helps..

I am in Dallas and I have a client who is an attorney who deals with real estate as well. What is the issue? DM me and I'll give you the contact information..