All Forum Posts by: Liam S.

Does anyone have recent experience building Multifamily homes from the ground up, most specifically in the South Florida market? I have stumbled upon several deals that in my opinion are not worth salvaging….I am thinking about building 4-8 unit buildings.

Interviewed a few developers and the price ranges varied dramatically…from $280-$600 per built sq ft. This would would a 6 unit (2/2) construction at roughly $2.4m + land value and holding costs during the constructions…which is expected at 1-2 years.

The upside I see is that I could fetch more in rent for a newer unit…but the price of construction and waiting doesn’t seem like a dream either.

Ps: I would find using money down and a construction loan.

Thoughts?

1 Vote

Quote from @Eliott Elias:

Don't buy property cash. You want to retire in 12 years? Build a portfolio of 20 properties, leverage your money and put the minimum down payment for each. Make sure they're in good school zones and will always rent. BRRRR your way to 20 properties and at least break even. Sell off your portfolio in 15 years and retire

Let's do it!

0 Votes

Quote from @Jeff Copeland:

You might consider leveraging properties at lower than the max LTV. For example, if you finance properties at 50% LTV, you can buy twice as many compared to cash, and the lower LTV will afford you better financing rates and terms with your lender(s).

Beyond that, the key is to define your goals and getting good at analyzing properties and identifying good deals.

Makes sense. Thanks

0 Votes

Quote from @Nathan Gesner:

Welcome to the BiggerPockets forums!

It really depends. If you inherited the money, I would recommend you count your blessings and find a financial advisor that can help you continue to grow without losing what you were given.

If you worked hard, purchased these properties, and paid them off yourself, then I would say you have what it takes to cash out some equity and start investing.

I would recommend investing in syndications. You can get the same returns, or close to them, as you would by purchasing your own investments, but you wouldn't have to deal with tenants, toilets, or property managers.

Earned every penny Nathan. I'm an entrepreneur but my background has never really aligned with real estate. I've been trying to get a 9% or better COC return as some of you have recommended on previous posts, but I just can't seem to find a single property to get me that yield.

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New to BP and RE investing, but not new to property ownership. I am 38 years old, own one second home worth $1m (paid off) and I have $2m equity on my primary home. In addition I have $1.5m of cash ready to invest. For a short while I was tempted to drop it all in the stock market, but considering the existing landscape I don’t feel that’s the best option.

My goal: Retire at 50 (in 12 years), and invest today on what would give me the biggest shot at continuous passive income in 12 years…not today. I will still have (or hope to have), an active revenue stream coming from my business until I retire so my main goal is not raking in money today but to maximize revenue in 10-12 years.

My credit is 800, and in addition to cash in hand I am backed my over $3m of property equity available.

What would you do? Buy a few properties cash to avoid the currently high interest? Put down payment on more properties and absorb a mortgage on the rest?

I’d prefer to st in South Florida

1 Vote

All Forum Posts by: Liam S.

Liam S. has started 2 posts and replied 5 times.

Post: Build a Multifamily from the ground up anyone?

Post: New to RE Investing

Post: New to RE Investing

Post: New to RE Investing

Post: New to RE Investing