All Forum Posts by: Felipe Soto

Quote from @Alex Ramirez:

@Felipe Soto I personally own mtf and a short term rental. It all comes down to how good of a deal you bought to start with. I closed on my STR with zero money down because it appraised at a lot more than estimated. Now the performance of a STR is heavily depend on the market/area you are at. Unless you are at a place where there are tourist all year round, there are some slow months and some really good months. There is obituary more turn over, more broken things, more maintenance. It's a more time consuming business if you will be managing yourself. I guess if I have to give some advice my bet would probably be mtf. Why? Just because mtf is a recession proof business model. When a recession happens, people get into a saving money mode. This will heavily impact a STR. People also lose their jobs and in so many instances even their home but they need a place to live so they have to move to an apartment. Mtf is a solid business model. Just make sure you buy for cash flow not appreciation. Hope this helps

Love the feedback Alex! Everything you said makes total sense. Congrats on your path, seems like you’ve been able to play both sides of the field already. I sort of thought the same as you, but hearing it from someone who can speak from experience on both ends helps. The deal is what it’s all about. Cashflow is king and over time appreciation comes from MF along with tax benefits. After a few reads from everyone, I’m going to continue to walk towards MF. Not saying STRs are bad at all because they can be great as well. I’d love to connect sometime if possible. I hear Houston, TX is great market!!

Quote from @Chris Irvin:

Hey Felipe! Just wanted to wish you goodluck! Im a newbie looking to get started in multifamily, so I would love to hear how things are going for you sometime! 

For sure Chris! I appreciate the message. I wish you the best on your journey as well!

Quote from @Senate Eskridge:

If you want to invest in Multifamily in Florida I would suggest finding an experienced partner.  I know several people who buy in Florida I can make some introductions if you are interested.  

Sure, I would be interested in that offer. This business is about relationships. That would be fantastic!! I am open for collaborating with experienced investors

Sure, I would be interested in that offer. This business is about relationships. That would be fantastic!! I am open for collaborating with experienced investors 

Thanks Nick! I almost purchased a 15 unit earlier this year. It was a 5.75 cap. Got lending @4%. However, upon inspection, we found the roof to be 33% shot with plenty leaks. We tried working out the deal with owner, but he was selling it as is. He didn’t want to put money in escrow to fix immediately upon selling. I would like to stay in Florida since I am a resident here. I have all my contacts to execute on a deal, inspectors, attorney, etc etc… Then rates came up and pricing seems to be still up. That’s when I decided to take a peak into STRs, but it’s seems to be in the same scenario with prices and rates. 

On my previous deal, it was a 2.5 mil deal, I had 750 down plus closing cost. Not a whole lot a rehab since the unit was 2008, and then we came up on that roof issue. 

Planing on keep looking for value add deals. Let’s see what happens.

Great points! I am in FL so it’s offers to both. I rather MF because on 32 plus units, one person leaving doesn’t affect Cash flow. Plus, MF is a necessity, not a luxury (recession proof). I have 1 Mil to invest so just weighting my options.

Thanks everyone for your input. I appreciate the feedback !! Many expressed how different variables makes this a very hard question. I can see that as well. In FL, Multi Family CAPS are at 4-5% at best. Putting 25/30% down definitely brings that COC up close to 8% and up based on the deal metrics. I am very familiar with Multi Family, but not too familiar with STRs. I heard some of these STR owners are getting COC returns 15% - 22% plus which was the purpose for my question.

Again, thank you for the feedback.

Can someone with experience please tell me what gives the best COC returns? Multi family or Short term rentals? If you have real live examples, that would be fantastic!

Felipe

Hi Jennifer, thanks for your insight. You make a good point!

Hello everyone,

I would like to ask anyone with multi family apartment experience a question. Do you think it’s better to wait to invest in apartments right now until this bubble environment passes by or is it still smart to invest still? I see two factors in play, high interest rates and low caps. When putting 30% down, the return on investment seems tight. Prices are still high and debt seems to be more expensive. Any feedback would be appreciated.

Felipe